CN · AsiaPW · Oceania
China vs Palau: tax rates compared
Between the two, China's income tax rate (45%) tops Palau's (12%) by 33pp. The 200-country average is 28%: China sits above it, Palau sits below it. China's figure is dated 2025-12-31 and Palau's 2026-07-20, 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 | CN | PW | Difference |
|---|---|---|---|
| Income Tax | 45% | 12% | CN +33 pplargest gap |
| VAT | 13% | 10% | CN +3 pp |
| Capital Gains Tax | 0% | 0% | match |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| China | 45% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Taxes on personal income) · as of 2025-12-31 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +33 pp | China higher |
VAT
| Country | Rate | Source |
|---|---|---|
| China | 13% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Corporate, Other taxes) · as of 2025-12-31 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | +3 pp | China higher |
Between the two, China's VAT rate (13%) tops Palau's (10%) by 3pp. The 181-country average is 15%: both sit below it. China's figure is dated 2025-12-31 and Palau's 2023-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: State Taxation Administration Shanxi Provincial Tax Service — Caishuizi [1998] No. 61 (财税字〔1998〕61号) · as of 1998-03-30 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — China and Palau both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it. China's figure is dated 1998-03-30 and Palau's 2026-07-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| China | 0% | Source: PWC Worldwide Tax Summaries — China, People's Republic of (Individual, Other taxes) · as of 2025-12-31 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — China and Palau both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it. China's figure is dated 2025-12-31 and Palau's 2026-07-18, so the two rates come from different data vintages.
Not covered for both countries yet: Corporate Tax, Crypto Tax.