LK · AsiaAE · Asia
Sri Lanka vs United Arab Emirates: tax rates compared
Sri Lanka's income tax rate is 36pp higher than United Arab Emirates's (36% vs 0%). The 200-country average is 28%: Sri Lanka sits above it, United Arab Emirates sits below it. Sri Lanka's figure is dated 2025-08-28 and United Arab Emirates's 2026-03-12, 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 | LK | AE | Difference |
|---|---|---|---|
| Income Tax | 36% | 0% | LK +36 pplargest gap |
| Corporate Tax | 30% | 9% | LK +21 pp |
| VAT | 18% | 5% | LK +13 pp |
| Capital Gains Tax | 0% | 0% | match |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Sri Lanka | 36% | Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28 |
| United Arab Emirates | 0% | Source: PWC Worldwide Tax Summaries — United Arab Emirates (Individual, Taxes on personal income) · as of 2026-03-12 |
| Difference | +36 pp | Sri Lanka higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Sri Lanka | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| United Arab Emirates | 9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +21 pp | Sri Lanka higher |
Sri Lanka's corporate tax rate is 21pp higher than United Arab Emirates's (30% vs 9%). The 201-country average is 22.6%: Sri Lanka sits above it, United Arab Emirates sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Sri Lanka | 18% | Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01 |
| United Arab Emirates | 5% | Source: PWC Worldwide Tax Summaries — United Arab Emirates (Corporate, Other taxes) · as of 2026-03-12 |
| Difference | +13 pp | Sri Lanka higher |
Sri Lanka's VAT rate is 13pp higher than United Arab Emirates's (18% vs 5%). The 181-country average is 15%: Sri Lanka sits above it, United Arab Emirates sits below it. Sri Lanka's figure is dated 2024-01-01 and United Arab Emirates's 2026-03-12, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Sri Lanka | 0% | Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19 |
| United Arab Emirates | 0% | Source: PWC Worldwide Tax Summaries — United Arab Emirates (Individual, Income determination) · as of 2026-03-12 |
| Difference | 0 pp | displayed rates match |
Sri Lanka's capital gains tax rate is identical to United Arab Emirates's — both sit at 0%. The 175-country average is 10.3%: both sit below it. Sri Lanka's figure is dated 2025-11-19 and United Arab Emirates's 2026-03-12, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Sri Lanka | 0% | Source: Sri Lanka Inland Revenue Department — Acts of Parliament (tax legislation listing) · as of 2026-07-18 |
| United Arab Emirates | 0% | Source: PWC Worldwide Tax Summaries — United Arab Emirates (Individual, Other taxes) · as of 2026-03-12 |
| Difference | 0 pp | displayed rates match |
Sri Lanka's wealth tax rate is identical to United Arab Emirates's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.