IS · EuropeTL · Asia
Iceland vs Timor-Leste: tax rates compared
Iceland's income tax rate is 36.3pp higher than Timor-Leste's (46.3% vs 10%). The 200-country average is 28%: Iceland sits above it, Timor-Leste sits below it. Iceland's figure is dated 2025-01-01 and Timor-Leste's 2026-03-05, 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 | IS | TL | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 10% | IS +36.3 pplargest gap |
| Corporate Tax | 20% | 10% | IS +10 pp |
| Capital Gains Tax | 22% | 10% | IS +12 pp |
| 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 |
| Timor-Leste | 10% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Taxes on personal income) · as of 2026-03-05 |
| Difference | +36.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Timor-Leste | 10% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +10 pp | Iceland higher |
Iceland's corporate tax rate is 10pp higher than Timor-Leste's (20% vs 10%). The 201-country average is 22.6%: both sit below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Timor-Leste | 10% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Taxes on personal income) · as of 2026-03-05 |
| Difference | +12 pp | Iceland higher |
Iceland's capital gains tax rate is 12pp higher than Timor-Leste's (22% vs 10%). The 175-country average is 10.3%: Iceland sits above it, Timor-Leste sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Timor-Leste | 0% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Other taxes) · as of 2026-03-05 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Timor-Leste's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: VAT, Crypto Tax.