PA · AmericasLK · Asia
Panama vs Sri Lanka: tax rates compared
Between the two, Sri Lanka's income tax rate (36%) tops Panama's (25%) by 11pp. The 200-country average is 28%: Panama sits below it, Sri Lanka sits above it. Panama's figure is dated 2026-01-18 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 | PA | LK | Difference |
|---|---|---|---|
| Income Tax | 25% | 36% | LK +11 pplargest gap |
| Corporate Tax | 25% | 30% | LK +5 pp |
| VAT | 7% | 18% | LK +11 pp |
| Capital Gains Tax | 10% | 0% | PA +10 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| Difference | −11 pp | Sri Lanka higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 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 Panama's (25%) by 5pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| Difference | −11 pp | Sri Lanka higher |
Between the two, Sri Lanka's VAT rate (18%) tops Panama's (7%) by 11pp. The 181-country average is 15%: Panama sits below it, Sri Lanka sits above it. Panama's figure is dated 2026-01-18 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| Difference | +10 pp | Panama higher |
Between the two, Panama's capital gains tax rate (10%) tops Sri Lanka's (0%) by 10pp. The 175-country average is 10.3%: both sit below it. Panama's figure is dated 2026-01-18 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| 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 — Panama 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.