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Pakistan vs Panama: tax rates compared
Between the two, Pakistan's income tax rate (35%) tops Panama's (25%) by 10pp. The 200-country average is 28%: Pakistan sits above it, Panama sits below 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 | PK | PA | Difference |
|---|---|---|---|
| Income Tax | 35% | 25% | PK +10 pp |
| Corporate Tax | 29% | 25% | PK +4 pp |
| VAT | 18% | 7% | PK +11 pplargest gap |
| Capital Gains Tax | 15% | 10% | PK +5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Pakistan | 35% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19 |
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Difference | +10 pp | Pakistan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Pakistan | 29% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +4 pp | Pakistan higher |
Between the two, Pakistan's corporate tax rate (29%) tops Panama's (25%) by 4pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Pakistan | 18% | Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | +11 pp | Pakistan higher |
Between the two, Pakistan's VAT rate (18%) tops Panama's (7%) by 11pp. The 181-country average is 15%: Pakistan sits above it, Panama sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Pakistan | 15% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | +5 pp | Pakistan higher |
Between the two, Pakistan's capital gains tax rate (15%) tops Panama's (10%) by 5pp. The 175-country average is 10.3%: Pakistan sits above it, Panama sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Pakistan | 0% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Pakistan and Panama 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.