HK · AsiaPA · Americas
Hong Kong vs Panama: tax rates compared
Panama's income tax rate is 8pp higher than Hong Kong's (25% vs 17%). The 200-country average is 28%: both sit below it. Hong Kong's figure is dated 2025-12-31 and Panama's 2026-01-18, 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 | PA | Difference |
|---|---|---|---|
| Income Tax | 17% | 25% | PA +8 pp |
| Corporate Tax | 16.5% | 25% | PA +8.5 pp |
| VAT | 0% | 7% | PA +7 pp |
| Capital Gains Tax | 0% | 10% | PA +10 pplargest gap |
| 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 |
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Difference | −8 pp | Panama higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 16.5% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −8.5 pp | Panama higher |
Panama's corporate tax rate is 8.5pp higher than Hong Kong's (25% vs 16.5%). The 201-country average is 22.6%: Hong Kong sits below it, Panama sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Hong Kong | 0% | Source: PWC Worldwide Tax Summaries — Hong Kong SAR (Corporate, Other taxes) · as of 2025-12-31 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | −7 pp | Panama higher |
Panama's VAT rate is 7pp higher than Hong Kong's (7% vs 0%). The 181-country average is 15%: both sit below it. Hong Kong's figure is dated 2025-12-31 and Panama's 2026-01-18, 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 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | −10 pp | Panama higher |
Panama's capital gains tax rate is 10pp higher than Hong Kong's (10% vs 0%). The 175-country average is 10.3%: both sit below it. Hong Kong's figure is dated 2025-12-31 and Panama's 2026-01-18, 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 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
Hong Kong's wealth tax rate is identical to Panama's — both sit at 0%. The 193-country average is 0.1%: both sit below it. Hong Kong's figure is dated 2025-12-31 and Panama's 2026-01-18, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax.