IT · EuropePK · Asia

Italy vs Pakistan: tax rates compared

Italy has an income tax rate of 47.2%, 12.2pp above Pakistan's 35%. The 200-country average is 28%: both sit above it. Italy's figure is dated 2025-01-01 and Pakistan's 2026-01-19, 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

0102030405060Income35%47.2%Corporate27.8%29%VAT18%22%Capital Gains15%26%Wealth Tax0%
five shared taxes, side by side
Tax IT PKDifference
Income Tax47.2%35%IT +12.2 pplargest gap
Corporate Tax27.8%29%PK +1.2 pp
VAT22%18%IT +4 pp
Capital Gains Tax26%15%IT +11 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Italy47.2%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Pakistan35%Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19
Difference+12.2 ppItaly higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Italy27.8%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Pakistan29%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−1.2 ppPakistan higher

Pakistan has a corporate tax rate of 29%, 1.2pp above Italy's 27.8%. The 201-country average is 22.6%: both sit above it.

VAT

VAT, side by side
CountryRateSource
Italy22%Source: PWC Worldwide Tax Summaries — Italy (Corporate, Other taxes) · as of 2026-07-13
Pakistan18%Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19
Difference+4 ppItaly higher

Italy has a VAT rate of 22%, 4pp above Pakistan's 18%. The 181-country average is 15%: both sit above it.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Italy26%Source: PWC Worldwide Tax Summaries — Italy (Individual, Income determination) · as of 2019-01-01
Pakistan15%Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19
Difference+11 ppItaly higher

Italy has a capital gains tax rate of 26%, 11pp above Pakistan's 15%. The 175-country average is 10.3%: both sit above it. Italy's figure is dated 2019-01-01 and Pakistan's 2026-01-19, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Italy0%Source: Agenzia delle Entrate — IVIE, base imponibile e aliquota · as of 2024-01-01
Pakistan0%Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19
Difference0 ppdisplayed rates match

Italy and Pakistan share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it. Italy's figure is dated 2024-01-01 and Pakistan's 2026-01-19, so the two rates come from different data vintages.

Not covered for both countries yet: Crypto Tax.