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Nepal vs Sri Lanka: tax rates compared
Between the two, Sri Lanka's income tax rate (36%) tops Nepal's (30%) by 6pp. The 200-country average is 28%: both sit above it. Nepal's figure is dated 2026-01-02 and Sri Lanka's 2025-08-28, 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 | NP | LK | Difference |
|---|---|---|---|
| Income Tax | 30% | 36% | LK +6 pplargest gap |
| Corporate Tax | 25% | 30% | LK +5 pp |
| VAT | 13% | 18% | LK +5 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 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | −6 pp | Sri Lanka higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Nepal | 25% | 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 | −5 pp | Sri Lanka higher |
Between the two, Sri Lanka's corporate tax rate (30%) tops Nepal's (25%) by 5pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Nepal | 13% | Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | −5 pp | Sri Lanka higher |
Between the two, Sri Lanka's VAT rate (18%) tops Nepal's (13%) by 5pp. The 181-country average is 15%: Nepal sits below it, Sri Lanka sits above it. Nepal's figure is dated 2005-01-01 and Sri Lanka's 2024-01-01, 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 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | +5 pp | Nepal higher |
Between the two, Nepal's capital gains tax rate (5%) tops Sri Lanka's (0%) by 5pp. The 175-country average is 10.3%: both sit below it. Nepal's figure is dated 2026-01-02 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Nepal | 0% | Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18 |
| 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 — Nepal 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.