PW · OceaniaPH · Asia
Palau vs Philippines: tax rates compared
Philippines's income tax rate is 23pp higher than Palau's (35% vs 12%). The 200-country average is 28%: Palau sits below it, Philippines sits above 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 | PW | PH | Difference |
|---|---|---|---|
| Income Tax | 12% | 35% | PH +23 pplargest gap |
| VAT | 10% | 12% | PH +2 pp |
| Capital Gains Tax | 0% | 0.6% | PH +0.6 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Philippines | 35% | Source: PWC Worldwide Tax Summaries — Philippines (Individual, Taxes on personal income) · as of 2026-07-02 |
| Difference | −23 pp | Philippines higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Philippines | 12% | Source: PWC Worldwide Tax Summaries — Philippines (Corporate, Other taxes) · as of 2026-01-12 |
| Difference | −2 pp | Philippines higher |
Philippines's VAT rate is 2pp higher than Palau's (12% vs 10%). The 181-country average is 15%: both sit below it. Palau's figure is dated 2023-01-01 and Philippines's 2026-01-12, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Philippines | 0.6% | Source: PWC Worldwide Tax Summaries — Philippines (Individual, Income determination) · as of 2026-07-02 |
| Difference | −0.6 pp | Philippines higher |
Philippines's capital gains tax rate is 0.6pp higher than Palau's (0.6% vs 0%). The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Philippines | 0% | Source: PWC Worldwide Tax Summaries — Philippines (Net wealth/worth tax rates) · as of 2026-01-12 |
| Difference | 0 pp | displayed rates match |
Palau's wealth tax rate is identical to Philippines's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Corporate Tax, Crypto Tax.