JP · AsiaPK · Asia
Japan vs Pakistan: tax rates compared
Between the two, Japan's income tax rate (55.9%) tops Pakistan's (35%) by 20.9pp. The 200-country average is 28%: both sit above it. Japan'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
| Tax | JP | PK | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 35% | JP +20.9 pplargest gap |
| Corporate Tax | 29.7% | 29% | JP +0.7 pp |
| VAT | 10% | 18% | PK +8 pp |
| Capital Gains Tax | 20.3% | 15% | JP +5.3 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Pakistan | 35% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19 |
| Difference | +20.9 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Pakistan | 29% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +0.7 pp | Japan higher |
Between the two, Japan's corporate tax rate (29.7%) tops Pakistan's (29%) by 0.7pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Pakistan | 18% | Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19 |
| Difference | −8 pp | Pakistan higher |
Between the two, Pakistan's VAT rate (18%) tops Japan's (10%) by 8pp. The 181-country average is 15%: Japan sits below it, Pakistan sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Pakistan | 15% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19 |
| Difference | +5.3 pp | Japan higher |
Between the two, Japan's capital gains tax rate (20.3%) tops Pakistan's (15%) by 5.3pp. The 175-country average is 10.3%: both sit above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Pakistan | 0% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Japan and Pakistan 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.