PW · OceaniaLK · Asia
Palau vs Sri Lanka: tax rates compared
Between the two, Sri Lanka's income tax rate (36%) tops Palau's (12%) by 24pp. The 200-country average is 28%: Palau sits below it, Sri Lanka sits above it. Palau's figure is dated 2026-07-20 and Sri Lanka's 2025-08-28, 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
| Tax | PW | LK | Difference |
|---|---|---|---|
| Income Tax | 12% | 36% | LK +24 pplargest gap |
| VAT | 10% | 18% | LK +8 pp |
| Capital Gains Tax | 0% | 0% | match |
| 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 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | −24 pp | Sri Lanka higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | −8 pp | Sri Lanka higher |
Between the two, Sri Lanka's VAT rate (18%) tops Palau's (10%) by 8pp. The 181-country average is 15%: Palau sits below it, Sri Lanka sits above it. Palau's figure is dated 2023-01-01 and Sri Lanka's 2024-01-01, 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 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Palau and Sri Lanka both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it. Palau's figure is dated 2026-07-19 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · 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 — Palau 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: Corporate Tax, Crypto Tax.