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India vs Sri Lanka: tax rates compared
Sri Lanka has an income tax rate of 36%, 6pp above India's 30%. The 200-country average is 28%: both sit above it. India's figure is dated 2026-05-12 and Sri Lanka's 2025-08-28, 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 | IN | LK | Difference |
|---|---|---|---|
| Income Tax | 30% | 36% | LK +6 pp |
| Corporate Tax | 30% | 30% | match |
| VAT | 18% | 18% | match |
| Capital Gains Tax | 12.5% | 0% | IN +12.5 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: PWC Worldwide Tax Summaries — India (Individual, Taxes on personal income) · as of 2026-05-12 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | −6 pp | Sri Lanka higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | 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 | 0 pp | displayed rates match |
India and Sri Lanka share the same corporate tax rate: 30%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| India | 18% | Source: PWC Worldwide Tax Summaries — India (Corporate, Other taxes) · as of 2026-05-11 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | 0 pp | displayed rates match |
India and Sri Lanka share the same VAT rate: 18%. The 181-country average is 15%: both sit above it. India's figure is dated 2026-05-11 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| India | 12.5% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2024-07-23 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | +12.5 pp | India higher |
India has a capital gains tax rate of 12.5%, 12.5pp above Sri Lanka's 0%. The 175-country average is 10.3%: India sits above it, Sri Lanka sits below it. India's figure is dated 2024-07-23 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| India | 0% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2026-05-12 |
| 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 |
India 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.