IM · EuropeJP · Asia

Isle of Man vs Japan: tax rates compared

Between the two, Japan's income tax rate (55.9%) tops Isle of Man's (21%) by 34.9pp. The 200-country average is 28%: Isle of Man sits below it, Japan sits above it. Isle of Man's figure is dated 2026-02-06 and Japan's 2025-01-01, 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

0102030405060Income21%55.9%Corporate0%29.7%VAT10%20%Capital Gains0%20.3%Wealth Tax0%
five shared taxes, side by side
Tax IM JPDifference
Income Tax21%55.9%JP +34.9 pplargest gap
Corporate Tax0%29.7%JP +29.7 pp
VAT20%10%IM +10 pp
Capital Gains Tax0%20.3%JP +20.3 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Isle of Man21%Source: PWC Worldwide Tax Summaries — Isle of Man (Individual, Taxes on personal income) · as of 2026-02-06
Japan55.9%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Difference−34.9 ppJapan higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Isle of Man0%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Japan29.7%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−29.7 ppJapan higher

Between the two, Japan's corporate tax rate (29.7%) tops Isle of Man's (0%) by 29.7pp. The 201-country average is 22.6%: Isle of Man sits below it, Japan sits above it.

VAT

VAT, side by side
CountryRateSource
Isle of Man20%Source: PWC Worldwide Tax Summaries — Isle of Man (Corporate, Other taxes) · as of 2026-02-06
Japan10%Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13
Difference+10 ppIsle of Man higher

Between the two, Isle of Man's VAT rate (20%) tops Japan's (10%) by 10pp. The 181-country average is 15%: Isle of Man sits above it, Japan sits below it.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Isle of Man0%Source: PWC Worldwide Tax Summaries — Isle of Man (Individual, Income determination) · as of 2026-02-06
Japan20.3%Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13
Difference−20.3 ppJapan higher

Between the two, Japan's capital gains tax rate (20.3%) tops Isle of Man's (0%) by 20.3pp. The 175-country average is 10.3%: Isle of Man sits below it, Japan sits above it.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Isle of Man0%Source: PWC Worldwide Tax Summaries — Isle of Man (Individual, Other taxes) · as of 2026-02-06
Japan0%Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13
Difference0 ppdisplayed rates match

There's no gap here — Isle of Man and Japan both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Crypto Tax.