🇱🇺 Luxembourg
Europe & Central Asia · OECD member · ISORA participant · ITTI survey participant
Luxembourg’s statutory framework includes controlled foreign company rules, interest limitation provisions, and country-by-country reporting requirements. In practice, the administration utilizes automated bulk data matching for enforcement purposes. The country recorded tax revenue equivalent to 38.6% of its GDP in 2022.Auto-generated summary of the verified data below; every fact traces to a source on this page.
38.6%
tax-to-GDP, general govt (2022, OECD)
9/11
enforcement powers assessed
Where the tax bite lands (2022)
Tax revenue by category, % of GDP, general government — OECD Revenue Statistics (Global).
Who collects it (2022)
| Level of government | % of GDP |
|---|---|
| Central government | 26.5% |
| Social security funds | 10.4% |
| State/regional government | 1.4% |
Tax-to-GDP over time
| 2000 | 2010 | 2019 | 2022 |
|---|---|---|---|
| 37.0% | 35.7% | 39.5% | 38.6% |
General government, OECD Revenue Statistics (Global).
Headline statutory rates
As stated in PwC Worldwide Tax Summaries’ territory overview (fetched 2026-08-20) — the wording is PwC’s; source.
| Tax | Headline rate as stated |
|---|---|
| Headline PIT rate | 42, plus 9% solidarity tax |
| Headline CIT rate | 23.87% on a combined basis (CIT, solidarity surtax, and municipal business tax [Luxembourg City]) as of fiscal year 2025 (previously 24.94%) |
| Standard VAT rate | 17 |
| Headline individual capital gains tax rate | Capital gains are subject to the normal PIT rate. |
| Headline corporate capital gains tax rate | Capital gains are subject to the normal CIT rate. |
| WHT rates (%) (Dividends/Interest/Royalties) | Resident: 15 / 0 / 0; Non-resident: 15 / 0 / 0 |
| Headline net wealth/worth tax rate | 0.5% up to EUR 500 million and 0.05% for any amount in excess of EUR 500 million. |
| Headline inheritance tax rate | NP |
| Headline gift tax rate | NP NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement) NP stands for Not Provided (i.e. the information is not currently provided in this chart) |
Enforcement powers
AI & machine-learning risk scoring No — power absent
Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation).
“Survey question "Administration uses artificial intelligence" — answer: No”
Source: OECD Inventory of Tax Technology InitiativesOECD / IMF survey data · derived from the administration’s own survey answer
Automated bulk data matching Yes — documented practice
Self-reported to ISORA (International Survey on Revenue Administration), FY2022.
“ISORA indicator "Administration undertakes fully automated compliance checks based on data matching/analysis" — value: Yes”
Source: IMF ISORA — International Survey on Revenue AdministrationOECD / IMF survey data · derived from the administration’s own survey answer
Digital platform reporting Yes — statutory power
As an EU member state, bound by Council Directive (EU) 2021/514 (DAC7) to require digital platform operators to collect, verify and report sellers’ income to the tax authority, applicable from 1 January 2023. National implementing law varies; this claim records the EU-law obligation, not a particular national statute.
“Member States shall adopt and publish, by 31 December 2022, the laws, regulations and administrative provisions necessary to comply with this Directive.”
Source: Council Directive (EU) 2021/514 (DAC7) — reporting by digital platform operatorsOfficial source · quote machine-verified 2026-08-25
Crypto-asset reporting Yes — statutory power
As an EU member state, bound by Council Directive (EU) 2023/2226 (DAC8) to require crypto-asset service providers to report users and transactions to the tax authority, applicable from 1 January 2026. National implementing law varies; this claim records the EU-law obligation, not a particular national statute.
“Member States shall adopt and publish, by 31 December 2025, the laws, regulations and administrative provisions necessary to comply with this Directive.”
Source: Council Directive (EU) 2023/2226 (DAC8) — reporting by crypto-asset service providersOfficial source · quote machine-verified 2026-08-25
Citizenship-based taxation No — power absent
Luxembourg taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries).
“Individual income tax is levied on the worldwide income of individuals residing in Luxembourg, as well as on Luxembourg-source income of non-residents.”
Source: PwC Worldwide Tax Summaries — LuxembourgProfessional / legal analysis · quote machine-verified 2026-08-25
Controlled foreign company (CFC) rules Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there a controlled foreign company rule in place? · Not applicable" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Interest limitation rules Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there an interest limitation rule in place? · Regime 1" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Country-by-country reporting Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0).
“OECD Corporate Tax Statistics: "Is there a country-by-country reporting law in place?" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Public naming of non-compliant taxpayers No — power absent
Self-reported to ISORA (International Survey on Revenue Administration), FY2022.
“ISORA indicator "Administration is empowered to make public details of some / all taxpayers subject to administrative penalties imposed for non-disclosure" — value: No”
Source: IMF ISORA — International Survey on Revenue AdministrationOECD / IMF survey data · derived from the administration’s own survey answer
Anti-avoidance regime detail (OECD Corporate Tax Statistics)
OECD-curated descriptions of this jurisdiction’s CFC, interest-limitation, CbCR and IP-regime rules.
CFC rules — 13 data points
| Is there a controlled foreign company rule in place? · Regime 1 | Yes |
| Is there a controlled foreign company rule in place? · Not applicable | Yes |
| Controlled foreign company rule · Regime 1 | A CFC is a foreign entity or foreign permanent establishment, the income of which is not taxable or is exempt in Luxembourg. In the case of a foreign entity, there must be a Luxembourg resident (either alone or with associated enterprises) that directly or indirectly holds more that 50% of the voting rights or capital, or is entitled to more that 50% of the profits. In addition, the income tax pai… |
| Controlled foreign company rule · Not applicable | Under Luxembourg tax law, a CFC is a foreign entity or permanent establishment (PE) whose profits are not subject to tax or are exempt in Luxembourg, in which a Luxembourg taxpayer, alone or together with associated enterprises, holds directly or indirectly more than 50% of the voting rights, capital ownership, or entitlement to profits of the entity (control test), and whose income is subject to … |
| Significant controlled foreign company exemption and exclusion requirements · Regime 1 | The rules do not apply to a CFC that has profits that do not exceed €750,000 or do not exceed 10% of its operation costs in the period. |
| Significant controlled foreign company exemption and exclusion requirements · Not applicable | Beyond the substance requirement, Luxembourg s CFC rules also contain specific exclusions. The CFC rule does not apply if a CFC has accounting profits equal to or less than EUR 750,000 or if its profit represents no more than 10% of its operating costs. These are the so-called de minimis thresholds under ATAD I. |
| Controlled foreign company income · Not applicable | In Luxembourg, CFC income is defined in Article 164ter LITL. CFC income consists of the non-distributed income of a controlled foreign company that arises from non-genuine arrangements put in place for the essential purpose of obtaining a tax advantage. An arrangement is considered non-genuine where the CFC would not own the assets or assume the risks generating the income were it not for the sign… |
| Substantial activity requirements description · Not applicable | In Luxembourg, the CFC rules (Article 164ter LITL, implementing ATAD I Option B) include an exclusion for entities that carry out substantial economic activity. The assessment is based on whether the foreign entity has the people, assets, equipment and premises necessary to perform its functions and to assume the risks linked to its activities. An arrangement is regarded as non-genuine where the C… |
| Substantial activity requirements · Regime 1 | No |
| Substantial activity requirements · Not applicable | Yes |
| Trigger rate for controlled foreign company rule · Not applicable | Under Luxembourg tax law, the trigger for applying the CFC rules is the “low-taxation condition” in Article 164ter LITL. The test is defined by reference to the Luxembourg domestic corporate income tax (CIT) rate. A foreign entity or permanent establishment qualifies as a CFC where its actual income tax liability is less than 50% of the Luxembourg CIT that would have been due on the same income. |
| Year of introduction of the controlled foreign company rule · Regime 1 | 2019 |
| Year of introduction of the controlled foreign company rule · Not applicable | 2019 |
Interest limitation — 41 data points
| Number of years allowed under carry forward/back. · Regime 1 | For non-deductible interest: unlimited carry forward. For unused interest capacity: 5 years carry forward. |
| Number of years allowed under carry forward/back. · Rule 1 | For non-deductible interest: unlimited carry forward. For unused interest capacity: 5 years carry forward. |
| Do any loss carry-back or carry-forward provisions apply? · Regime 1 | Yes |
| Do any loss carry-back or carry-forward provisions apply? · Rule 1 | Yes |
| Is a de minimis threshold present? · Regime 1 | The de minimis threshold in Luxembourg is EUR 3 million of exceeding borrowing costs (per taxpayer, per tax period). |
| Is a de minimis threshold present? · Rule 1 | The de minimis threshold in Luxembourg is EUR 3 million of exceeding borrowing costs (per taxpayer, per tax period). |
| Any other exclusions? · Regime 1 | No |
| Any other exclusions? · Rule 1 | No |
| Exclusions based on payer characteristics? · Regime 1 | Yes |
| Exclusions based on payer characteristics? · Rule 1 | Yes |
| Exclusions based on payment characteristics? · Regime 1 | Yes |
| Exclusions based on payment characteristics? · Rule 1 | Yes |
| Exclusions based on recipient characteristics? · Regime 1 | No |
| Exclusions based on recipient characteristics? · Rule 1 | No |
| Financial accounting measure applied to rule · Regime 1 | Interest-to-EBITDA : Luxembourg interest limitation rule is based on an interest-to-EBITDA ratio. Exceeding borrowing costs are deductible only up to 30% of tax-adjusted EBITDA (with a EUR 3 million safe harbour). |
| Financial accounting measure applied to rule · Rule 1 | Interest-to-EBITDA : Luxembourg interest limitation rule is based on an interest-to-EBITDA ratio. Exceeding borrowing costs are deductible only up to 30% of tax-adjusted EBITDA (with a EUR 3 million safe harbour). |
| Description of group ratio rule · Regime 1 | Where the taxpayer is a member of a consolidated group for financial accounting purposes, the taxpayer has the right to fully deduct its exceeding borrowing costs if it can demonstrate that the ratio of its equity over its total assets is equal to or higher than the equivalent ratio of the group, subject to specific conditions. |
| Description of group ratio rule · Rule 1 | Where the taxpayer is a member of a consolidated group for financial accounting purposes, the taxpayer has the right to fully deduct its exceeding borrowing costs if it can demonstrate that the ratio of its equity over its total assets is equal to or higher than the equivalent ratio of the group, subject to specific conditions. |
| Is there a group ratio rule or similar type of rule in place? · Regime 1 | Yes |
| Is there a group ratio rule or similar type of rule in place? · Rule 1 | Yes |
| Is there an interest limitation rule in place? · Regime 1 | Yes |
| Is there an interest limitation rule in place? · Rule 1 | Yes |
| Can interest be recharacterised as a dividend? · Regime 1 | No |
| Can interest be recharacterised as a dividend? · Rule 1 | No |
| Is the rule is applicable to net or gross interest expensing? · Regime 1 | The limit applies to net interest expense (i.e. exceeding borrowing costs, equal to deductible interest expense minus taxable interest income). |
| Is the rule is applicable to net or gross interest expensing? · Rule 1 | The limit applies to net interest expense (i.e. exceeding borrowing costs, equal to deductible interest expense minus taxable interest income). |
| Is the rule applicable to related party debt? · Regime 1 | Yes |
| Is the rule applicable to related party debt? · Rule 1 | Yes |
| Description of interest limitation rule · Regime 1 | The Luxembourg interest limitation rule, codified in Article 168bis LITL, limits the deductibility of exceeding borrowing costs (i.e. the positive difference between deductible interest expenses and taxable interest income) to the higher of 30% of the taxpayer s tax-adjusted EBITDA or EUR 3,000,000. This safe harbour allows full deduction where exceeding borrowing costs do not exceed EUR 3 million… |
| Description of interest limitation rule · Rule 1 | The Luxembourg interest limitation rule, codified in Article 168bis LITL, limits the deductibility of exceeding borrowing costs (i.e. the positive difference between deductible interest expenses and taxable interest income) to the higher of 30% of the taxpayer’s tax-adjusted EBITDA or EUR 3,000,000. This safe harbour allows full deduction where exceeding borrowing costs do not exceed EUR 3 million… |
| Type of interest limitation rule · Regime 1 | Luxembourg applies a fixed ratio rule, introduced by the law of 21 December 2018 transposing Article 4 of ATAD I into domestic law. Codified in Article 168bis LITL, the rule has applied since 1 January 2019. It limits the deduction of exceeding borrowing costs to the higher of 30% of tax-adjusted EBITDA or EUR 3 million. |
| Type of interest limitation rule · Rule 1 | Luxembourg applies a fixed ratio rule, introduced by the law of 21 December 2018 transposing Article 4 of ATAD I into domestic law. Codified in Article 168bis LITL, the rule has applied since 1 January 2019. It limits the deduction of exceeding borrowing costs to the higher of 30% of tax-adjusted EBITDA or EUR 3 million. |
| Financial ratio referenced · Regime 1 | The fixed ratio is 30% of tax-adjusted EBITDA (Article 168bis LITL). |
| Financial ratio referenced · Rule 1 | The fixed ratio is 30% of tax-adjusted EBITDA (Article 168bis LITL). |
| Is the rule is applicable to third party debt? · Regime 1 | Yes |
| Is the rule is applicable to third party debt? · Rule 1 | Yes |
| Description of targeted rules · Regime 1 | In addition to the interest limitation rule under Article 168bis LITL, Luxembourg s framework is reinforced by the application of the arm s length principle (Article 56 LITL and general transfer pricing rules) as well as by specific anti-abuse provisions applicable to transactions with associated enterprises resident in non-cooperative jurisdictions for tax purposes. These complementary measures f… |
| Description of targeted rules · Rule 1 | In addition to the interest limitation rule under Article 168bis LITL, Luxembourg’s framework is reinforced by the application of the arm’s length principle (Article 56 LITL and general transfer pricing rules) as well as by specific anti-abuse provisions applicable to transactions with associated enterprises resident in non-cooperative jurisdictions for tax purposes. These complementary measures f… |
| Are there targeted rules to address specific risks not addressed by the general rule? · Regime 1 | Yes |
| Are there targeted rules to address specific risks not addressed by the general rule? · Rule 1 | Yes |
| Year of introduction of the interest limitation rule · Rule 1 | 2019 |
Country-by-country reporting — 4 data points
| Is there a country-by-country reporting law in place? | Yes |
| Deadline by which filings must be submitted | 12 months |
| Reports are required for MNEs with annual revenues above | EUR 750 million |
| Headquarter jurisidiction filing required from | 01-Jan-16 |
IP regimes — 6 data points
| Further information · Regime 1 | Qualifying assets refers to patents, utility models, supplementary protection certificates, prorogations of supplementary protection certificates, plant breeders� rights, orphan drug designations and copyrighted software. |
| Regime name · Regime 1 | IP regime |
| Status of the IP regime as determined by the OECD’s Forum on Harmful Tax Practices (FHTP). · Regime 1 | Not harmful |
| Asset types that can qualify for the IP regime · Regime 1 | Patents, Software |
| Tax rate that would otherwise apply · Regime 1 | 24.94% |
| Reduced tax rate that applies under the IP regime · Regime 1 | 4.99% |
Effective corporate tax rates
| Measure | Year | Rate |
|---|---|---|
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 20.8% |
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 10.9% |
| Capital allowances · Percentage of initial investment · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 16.6% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 22.0% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 14.9% |
| Capital allowances · Percentage of initial investment · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 19.3% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 23.8% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 23.5% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 25.3% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 21.3% |
| Effective average tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 23.8% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 22.6% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 22.5% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 23.4% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 21.5% |
| Effective average tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 22.8% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 30.7% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 28.8% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 43.0% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 10.9% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 30.6% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 19.9% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 19.7% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 27.1% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 10.2% |
| Effective marginal tax rate · Percentage of taxable income · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 21.7% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Acquired software · Not applicable | 2025 | 4.3% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Composite · Not applicable | 2025 | 4.2% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Inventories · Not applicable | 2025 | 4.7% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Buildings · Not applicable | 2025 | 3.6% |
| Cost of capital · Percentage of investment · Baseline · Country-specific interest and inflation rates · Tangibles · Not applicable | 2025 | 4.3% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Acquired software · Not applicable | 2025 | 3.6% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Composite · Not applicable | 2025 | 3.6% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Inventories · Not applicable | 2025 | 3.8% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Buildings · Not applicable | 2025 | 3.3% |
| Cost of capital · Percentage of investment · Baseline · Fixed interest and inflation rates · Tangibles · Not applicable | 2025 | 3.7% |
OECD Corporate Tax Statistics, baseline scenario.
Administration self-reported metrics (ISORA)
Reported by the administration itself to the IMF/OECD/CIAT/IOTA International Survey on Revenue Administration. 1 = yes, 0 = no for policy questions.
| Indicator | Year | Value |
|---|---|---|
| Percentage of tax returns - Electronic, not prefilled - CIT | 2024 | 83.37202432956408 |
| Percentage of tax returns - Electronic, not prefilled - PIT | 2024 | 26.15750353979118 |
| Percentage of tax returns - Electronic, not prefilled - VAT | 2024 | 99.77470604313226 |
| Population per FTE | 2024 | 465.6203576341128 |
| Labor force per FTE | 2024 | 240.4401650618982 |
| Active taxpayers on PIT register as percentage of Population | 2024 | — |
| Active taxpayers on PIT register as percentage of Labor Force | 2024 | — |
| Closing stock of collectable arrears as percentage of closing stock of arrears | 2024 | — |
| CIT arrears as percentage of CIT collected | 2024 | 40.39019378672963 |
| PIT arrears as percentage of PIT collected | 2024 | 2.652317254829112 |
| PAYE arrears as percentage of PIT collected | 2024 | — |
| VAT arrears as percentage of VAT collected | 2024 | 14.24186472524321 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - CIT | 2021 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - CIT | 2021 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - CIT | 2021 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - PIT | 2021 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - PIT | 2021 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - PIT | 2021 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - VAT | 2021 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - VAT | 2021 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - VAT | 2021 | 0 |
| Additional assessments raised through all audits and verification actions as percentage of tax collections | 2024 | 0.2824356416849013 |
| Audit hit rate | 2024 | — |
| Percentage of tax returns - Electronic, not prefilled - PAYE | 2024 | 100 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, not modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - VAT | 2024 | 0 |
| Availability of specific powers in legislation / regulation to assist in collecting tax arrears | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Common administrative penalty framework for non-disclosure across the major tax types | 2022 | 0 |
| Administrative sanctions for taxpayer non-disclosure - Penalties imposed generally take account of taxpayers' culpability (i.e. degree of blame) | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Administration is empowered to remit / reduce penalties in appropriate circumstances | 2022 | 1 |
| Administrative sanctions for taxpayer non-disclosure - Administration is empowered to make public details of some / all taxpayers subject to administrative penalties imposed for non-disclosure | 2022 | 0 |
| On-time filing rate % - CIT | 2024 | — |
| On-time filing rate % - PIT | 2024 | — |
| On-time filing rate % - VAT | 2024 | 87.95467743010272 |
| On-time filing rate % - PAYE | 2024 | — |
| Administration pre-fills PIT returns or assessments | 2024 | 1 |
| Categories of third party information used to pre-fill PIT returns or assessments-Income information: Wages and salaries | 2024 | 1 |
| Categories of third party information used to pre-fill PIT returns or assessments-Income information: Pension | 2024 | 1 |
| Categories of third party information used to pre-fill PIT returns or assessments-Taxpayer personal information | 2024 | 1 |
| Administration conducts random audits | 2022 | 1 |
| E-filing mandatory - CIT | 2022 | 1 |
| E-filing mandatory - PIT | 2022 | 0 |
| E-filing mandatory - Employer Withholdings | 2022 | 1 |
| E-filing mandatory - VAT | 2022 | 1 |
| E-payment mandatory - CIT | 2022 | 1 |
| E-payment mandatory - PIT | 2022 | 1 |
| E-payment mandatory - Employer Withholdings | 2022 | 1 |
| E-payment mandatory - VAT | 2022 | 1 |
| Employers withholding taxes on behalf of salaried employees | 2024 | 1 |
| Percentage of payments received electronically-By number of payments | 2024 | 100 |
| Percentage of payments received electronically-By value of payments | 2024 | 100 |
| Cooperative compliance approach exists for -Large taxpayers | 2024 | 0 |
| Cooperative compliance approach exists for -HNWI taxpayers | 2024 | 0 |
| Cooperative compliance approach exists for -Other taxpayers | 2024 | 0 |
| Most employees that have tax deducted through direct withholding required to file a return | 2024 | 0 |
| Administration receives data from devices that register transactions | 2024 | 0 |
| Administration uses electronic compliance checks as part of returns filing process | 2024 | 1 |
| Administration has specialized audit staff for international tax issues | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Customs data | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Data from stock exchanges | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Data from the Social Security Agency | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from online (internet-based) vendors | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Data from Utilities | 2022 | 0 |
| Administration checks the quality of data reported by third parties on a systematic basis | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Data on property ownership and sales | 2022 | 1 |
| Administration undertakes fully automated compliance checks based on data matching/analysis | 2022 | 1 |
| Administration undertakes fully automated compliance checks - compliance issues automatically communicated to taxpayer | 2022 | 0 |
| Administration measures the effectiveness of any compliance interventions undertaken | 2022 | 0 |
| Administration has standards for auditor productivity | 2022 | 1 |
Tax technology survey answers (OECD ITTI)
| Question | Answer |
|---|---|
| Administration requires individuals to use an approved digital identity to access secure digital services | Yes |
| Administration requires businesses to use an approved digital identity to access secure digital services | Yes |
| Administration automatically prefills personal income tax returns with data that it has collected | No |
| Administration automatically prefills corporate income tax returns with data that it has collected | No |
| Estimated percentage of the individual taxpayer population that uses an approved digital identity to access secure digital services offered by the administration | 21-40% |
| Estimated percentage of the business taxpayer population that uses an approved digital identity to access secure digital services offered by the administration | 81-100% |
| Administration has a comprehensive data management strategy | Yes |
| Administration assesses data quality of reported data | Yes |
| Administration has in place a data ethics framework | Yes |
| Administration controls user data access and security | Yes |
| Administration automatically detects unauthorised access | No |
| Administration employs a Data Privacy Officer | Yes |
| Administration has a cyber security unit | Yes |
| Administration hires external parties to test the security of its systems | Yes |
| Administration uses artificial intelligence as part of the data governance process | No |
| Administration has big data capabilities with the necessary people, skills and infrastructure | Yes |
| Administration uses an enterprise-wide Business Intelligence and Visualisation tool | No |
| Administration uses analytics for real-time tax fraud detection and prevention | No |
| Underlying digital identity solution for individuals is built upon an existing domestic identity system or completely new | Existing domestic identity system |
| Underlying digital identity solution for businesses is built upon an existing domestic identity system or completely new | Existing domestic identity system |
| Cloud storage | No |
| Robotic process automation | No |
| Artificial intelligence | No |
| Machine learning | No |
| Network analysis | No |
| DataOps approach | No |
| Industry, international or other framework was adopted for the development of the digital identity solution for individuals | No |
| Industry, international or other framework was adopted for the development of the digital identity solution for businesses | No |
| Digital identity solution for individuals can connect with foreign identity systems | Yes |
| Digital identity solution for businesses can connect with foreign identity systems | Yes |
| Digital identity for individuals created automatically or on request | On request |
| Digital identity for businesses created automatically or on request | On request |
| Meeting needed to finalise the process of receiving a digital identity for individuals | Always |
| Meeting needed to finalise the process of receiving a digital identity for businesses | Always |
| Individuals without ID-documents or birth certificates can receive a digital identity for the use of tax purpose | No |
| Authentication method applied to verify the digital identity when used online | Yes |
| Use of emerging and innovative technologies or solutions with respect to the main digital identity used by taxpayers | No |
| Administration offers online service for registering for tax (CIT) | No |
| Administration offers online service for registering for tax (PIT) | No |
| Administration offers online service for filing tax returns (CIT) | Yes |
| Administration offers online service for filing tax returns (PIT) | Yes |
| Administration offers online service for making tax payments (CIT) | No |
| Administration offers online service for making tax payments (PIT) | No |
| Administration offers online service for requesting extensions of deadlines (filing and payment) (CIT) | Yes |
| Administration offers online service for requesting extensions of deadlines (filing and payment) (PIT) | Yes |
| Administration offers online service for asking for tax payment arrangements (CIT) | No |
| Administration offers online service for asking for tax payment arrangements (PIT) | No |
| Administration offers online service for asking confidential enquiries in a secure environment (CIT) | No |
| Administration offers online service for asking confidential enquiries in a secure environment (PIT) | No |
| Administration offers online service for filing tax related objections (CIT) | No |
| Administration offers online service for filing tax related objections (PIT) | No |
| Administration offers online service for dealing with correspondence (CIT) | No |
| Administration offers online service for dealing with correspondence (PIT) | No |
| Administration offers online service for uploading data into the tax administration's system (CIT) | Yes |
| Administration offers online service for uploading data into the tax administration's system (PIT) | Yes |
| Administration offers specific approaches to those that do not have online access | Yes |
| Administration offers facility for taxpayers to interact with virtual assistants, such as chatbots | No |
| Administration uses artificial intelligence during interactions with taxpayers (other than virtual assistants) | No |
| Administration offers services that follow a set of pre-programmed and automated service responses during interactions with taxpayers (other than virtual assistants) | No |
| Administration has an enterprise data management (governance) system that allows taxpayer information be viewed across the administration | Yes |
| Administration uses big data for analytical purposes | Yes |
| Administration uses artificial intelligence / machine learning as part of the big data analysis | No |
| Administration uses artificial intelligence | No |
| Administration uses Distributed Ledger Technology, e.g. blockchain, in its taxation processes | No |
| Mobile app | Yes |
| Use of big data to: Policy forecasting | Yes |
| Use of big data to: Revenue forecasting | Yes |