LA · AsiaTO · Oceania

Laos vs Tonga: tax rates compared

There's no gap here — Laos and Tonga both post an income tax rate of 25%. The 200-country average is 28%: both sit below it. Laos's figure is dated 2026-02-06 and Tonga's 2021-07-01, so the two rates come from different data vintages.

Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income25%Corporate20%25%VAT10%15%Wealth Tax0%
four shared taxes, side by side
Tax LA TODifference
Income Tax25%25%match
Corporate Tax20%25%TO +5 pplargest gap
VAT10%15%TO +5 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Laos25%Source: PWC Worldwide Tax Summaries — Lao PDR (Individual, Taxes on personal income) · as of 2026-02-06
Tonga25%Source: Ministry of Revenue & Customs, Government of Tonga — Individual Employee · as of 2021-07-01
Difference0 ppdisplayed rates match

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Laos20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Tonga25%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−5 ppTonga higher

Between the two, Tonga's corporate tax rate (25%) tops Laos's (20%) by 5pp. The 201-country average is 22.6%: Laos sits below it, Tonga sits above it.

VAT

VAT, side by side
CountryRateSource
Laos10%Source: PWC Worldwide Tax Summaries — Lao PDR (Corporate, Other taxes) · as of 2026-02-06
Tonga15%Source: Consumption Tax Act (CAP 26.02, 2016 Revised Edition), Kingdom of Tonga · as of 2010-11-24
Difference−5 ppTonga higher

Between the two, Tonga's VAT rate (15%) tops Laos's (10%) by 5pp. The 181-country average is 15%: Laos sits below it, Tonga matches the world average. Laos's figure is dated 2026-02-06 and Tonga's 2010-11-24, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Laos0%Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-02-06
Tonga0%Source: Tonga Ministry of Revenue & Customs — Tax Legislations (official index) · as of 2026-07-18
Difference0 ppdisplayed rates match

There's no gap here — Laos and Tonga 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: Capital Gains Tax, Crypto Tax.