PW · OceaniaTL · Asia
Palau vs Timor-Leste: tax rates compared
Between the two, Palau's income tax rate (12%) tops Timor-Leste's (10%) by 2pp. The 200-country average is 28%: both sit below it.
Verified data covers three of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | PW | TL | Difference |
|---|---|---|---|
| Income Tax | 12% | 10% | PW +2 pp |
| Capital Gains Tax | 0% | 10% | TL +10 pplargest gap |
| 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 |
| Timor-Leste | 10% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Taxes on personal income) · as of 2026-03-05 |
| Difference | +2 pp | Palau higher |
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 |
| Timor-Leste | 10% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Taxes on personal income) · as of 2026-03-05 |
| Difference | −10 pp | Timor-Leste higher |
Between the two, Timor-Leste's capital gains tax rate (10%) tops Palau's (0%) by 10pp. 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 |
| Timor-Leste | 0% | Source: PWC Worldwide Tax Summaries — Timor-Leste (Individual, Other taxes) · as of 2026-03-05 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Palau and Timor-Leste 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, VAT, Crypto Tax.