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Bhutan vs Sri Lanka: tax rates compared
Sri Lanka's income tax rate is 6pp higher than Bhutan's (36% vs 30%). The 200-country average is 28%: both sit above it. Bhutan's figure is dated 2026-07-20 and Sri Lanka's 2025-08-28, 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 | LK | Difference |
|---|---|---|---|
| Income Tax | 30% | 36% | LK +6 pp |
| Corporate Tax | 25% | 30% | LK +5 pp |
| VAT | 5% | 18% | LK +13 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 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | −6 pp | Sri Lanka higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Sri Lanka | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5 pp | Sri Lanka higher |
Sri Lanka's corporate tax rate is 5pp higher than Bhutan's (30% vs 25%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Bhutan | 5% | Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Bhutan · as of 2026-01-01 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | −13 pp | Sri Lanka higher |
Sri Lanka's VAT rate is 13pp higher than Bhutan's (18% vs 5%). The 181-country average is 15%: Bhutan sits below it, Sri Lanka sits above it. Bhutan's figure is dated 2026-01-01 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Bhutan | 0% | Source: Bhutan Department of Revenue and Customs, Ministry of Finance · as of 2026-07-18 |
| Sri Lanka | 0% | Source: Sri Lanka Inland Revenue Department — Acts of Parliament (tax legislation listing) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Bhutan's wealth tax rate is identical to Sri Lanka's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.