HK · AsiaPW · Oceania
Hong Kong vs Palau: tax rates compared
Between the two, Hong Kong's income tax rate (17%) tops Palau's (12%) by 5pp. The 200-country average is 28%: both sit below it. Hong Kong'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 five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | HK | PW | Difference |
|---|---|---|---|
| Income Tax | 17% | 12% | HK +5 pp |
| VAT | 0% | 10% | PW +10 pplargest gap |
| Capital Gains Tax | 0% | 0% | match |
| Crypto Tax | 0% | 0% | match |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 17% | Source: PWC Worldwide Tax Summaries — Hong Kong SAR (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 | +5 pp | Hong Kong higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 0% | Source: PWC Worldwide Tax Summaries — Hong Kong SAR (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 | −10 pp | Palau higher |
Between the two, Palau's VAT rate (10%) tops Hong Kong's (0%) by 10pp. The 181-country average is 15%: both sit below it. Hong Kong'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 |
|---|---|---|
| Hong Kong | 0% | Source: PWC Worldwide Tax Summaries — Hong Kong SAR (Individual, Income determination) · as of 2025-12-31 |
| 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 — Hong Kong and Palau both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it. Hong Kong's figure is dated 2025-12-31 and Palau's 2026-07-19, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 0% | Source: Hong Kong Inland Revenue Department — Departmental Interpretation and Practice Notes No. 39 (Revised): Digital Economy, Electronic Commerce and Digital Assets · as of 2020-03-01 |
| 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 — Hong Kong and Palau both post a crypto tax rate of 0%. The 88-country average is 13%: both sit below it. Hong Kong's figure is dated 2020-03-01 and Palau's 2026-07-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 0% | Source: PWC Worldwide Tax Summaries — Hong Kong SAR (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 — Hong Kong and Palau both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it. Hong Kong'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.