NP · AsiaPW · Oceania
Nepal vs Palau: tax rates compared
Between the two, Nepal's income tax rate (30%) tops Palau's (12%) by 18pp. The 200-country average is 28%: Nepal sits above it, Palau sits below it.
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
| Tax | NP | PW | Difference |
|---|---|---|---|
| Income Tax | 30% | 12% | NP +18 pplargest gap |
| VAT | 13% | 10% | NP +3 pp |
| Capital Gains Tax | 5% | 0% | NP +5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Nepal | 30% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Schedule 1 (clause 1) · as of 2026-01-02 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +18 pp | Nepal higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Nepal | 13% | Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | +3 pp | Nepal higher |
Between the two, Nepal's VAT rate (13%) tops Palau's (10%) by 3pp. The 181-country average is 15%: both sit below it. Nepal's figure is dated 2005-01-01 and Palau's 2023-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Nepal | 5% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Section 95Ka(2)(a) · as of 2026-01-02 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +5 pp | Nepal higher |
Between the two, Nepal's capital gains tax rate (5%) tops Palau's (0%) by 5pp. The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Nepal | 0% | Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Nepal and Palau 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: Corporate Tax, Crypto Tax.