BT · AsiaIS · Europe
Bhutan vs Iceland: tax rates compared
Between the two, Iceland's income tax rate (46.3%) tops Bhutan's (30%) by 16.3pp. The 200-country average is 28%: both sit above it. Bhutan's figure is dated 2026-07-20 and Iceland's 2025-01-01, so the two rates come from different data vintages.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | BT | IS | Difference |
|---|---|---|---|
| Income Tax | 30% | 46.3% | IS +16.3 pp |
| Corporate Tax | 25% | 20% | BT +5 pp |
| VAT | 5% | 24% | IS +19 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 30% | Source: Bhutan Department of Revenue and Customs, Ministry of Finance — Personal Income Tax (PIT) · as of 2026-07-20 |
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −16.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +5 pp | Bhutan higher |
Between the two, Bhutan's corporate tax rate (25%) tops Iceland's (20%) by 5pp. The 201-country average is 22.6%: Bhutan sits above it, Iceland sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Bhutan | 5% | Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Bhutan · as of 2026-01-01 |
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Difference | −19 pp | Iceland higher |
Between the two, Iceland's VAT rate (24%) tops Bhutan's (5%) by 19pp. The 181-country average is 15%: Bhutan sits below it, Iceland sits above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 0% | Source: Bhutan Department of Revenue and Customs, Ministry of Finance · as of 2026-07-18 |
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Bhutan and Iceland both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.