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Iceland vs Sri Lanka: tax rates compared
Iceland has an income tax rate of 46.3%, 10.3pp above Sri Lanka's 36%. The 200-country average is 28%: both sit above it.
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 | IS | LK | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 36% | IS +10.3 pp |
| Corporate Tax | 20% | 30% | LK +10 pp |
| VAT | 24% | 18% | IS +6 pp |
| Capital Gains Tax | 22% | 0% | IS +22 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | +10.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | 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 | −10 pp | Sri Lanka higher |
Sri Lanka has a corporate tax rate of 30%, 10pp above Iceland's 20%. The 201-country average is 22.6%: Iceland sits below it, Sri Lanka sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | +6 pp | Iceland higher |
Iceland has a VAT rate of 24%, 6pp above Sri Lanka's 18%. The 181-country average is 15%: both sit above it. Iceland's figure is dated 2026-06-22 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | +22 pp | Iceland higher |
Iceland has a capital gains tax rate of 22%, 22pp above Sri Lanka's 0%. The 175-country average is 10.3%: Iceland sits above it, Sri Lanka sits below it. Iceland's figure is dated 2026-01-01 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| 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 |
Iceland and Sri Lanka share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.