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Japan vs Sri Lanka: tax rates compared
Between the two, Japan's income tax rate (55.9%) tops Sri Lanka's (36%) by 19.9pp. The 200-country average is 28%: both sit above it.
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 | LK | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 36% | JP +19.9 pp |
| Corporate Tax | 29.7% | 30% | LK +0.3 pp |
| VAT | 10% | 18% | LK +8 pp |
| Capital Gains Tax | 20.3% | 0% | JP +20.3 pplargest gap |
| 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 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | +19.9 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 29.7% | 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 | −0.3 pp | Sri Lanka higher |
Between the two, Sri Lanka's corporate tax rate (30%) tops Japan's (29.7%) by 0.3pp. 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 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | −8 pp | Sri Lanka higher |
Between the two, Sri Lanka's VAT rate (18%) tops Japan's (10%) by 8pp. The 181-country average is 15%: Japan sits below it, Sri Lanka sits above it. Japan's figure is dated 2026-01-13 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | +20.3 pp | Japan higher |
Between the two, Japan's capital gains tax rate (20.3%) tops Sri Lanka's (0%) by 20.3pp. The 175-country average is 10.3%: Japan sits above it, Sri Lanka sits below it. Japan's figure is dated 2026-01-13 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| 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 |
There's no gap here — Japan and Sri Lanka 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.