Luxembourg levies dividend withholding tax. The Luxembourg dividend withholding tax rate is 15%. The rate applies to both domestic and cross border dividend distributions.

Double tax treaties and exemptions

Luxembourg dividend withholding may be reduced under its double tax treaties. As the most common tax treaty rate on dividend income is equal to Luxembourg’s domestic dividend withholding tax rates, refunds of Luxembourg withholding tax will likely only apply in exceptional situations for certain specific investors (like pension funds) that may be entitled to a full exemption under a double tax treaty.

reclaim opportunities

Refunds of Luxembourg dividend withholding tax may be applied for by using form 901bis.

Statute of Limitations

Luxembourg has a statute of limitations of 1 year after the end of the year in which the dividend was received, unless a double tax treaty applies and dictates a different statute of limitations.