BT · AsiaPW · Oceania

Bhutan vs Palau: tax rates compared

Between the two, Bhutan's income tax rate (30%) tops Palau's (12%) by 18pp. The 200-country average is 28%: Bhutan sits above it, Palau sits below it.

Verified data covers three of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income12%30%VAT5%10%Wealth Tax0%
three shared taxes, side by side
Tax BT PWDifference
Income Tax30%12%BT +18 pplargest gap
VAT5%10%PW +5 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Bhutan30%Source: Bhutan Department of Revenue and Customs, Ministry of Finance — Personal Income Tax (PIT) · as of 2026-07-20
Palau12%Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20
Difference+18 ppBhutan higher

VAT

VAT, side by side
CountryRateSource
Bhutan5%Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Bhutan · as of 2026-01-01
Palau10%Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01
Difference−5 ppPalau higher

Between the two, Palau's VAT rate (10%) tops Bhutan's (5%) by 5pp. The 181-country average is 15%: both sit below it. Bhutan's figure is dated 2026-01-01 and Palau's 2023-01-01, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Bhutan0%Source: Bhutan Department of Revenue and Customs, Ministry of Finance · as of 2026-07-18
Palau0%Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18
Difference0 ppdisplayed rates match

There's no gap here — Bhutan and Palau 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: Corporate Tax, Capital Gains Tax, Crypto Tax.