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Brazil vs Sri Lanka
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡§πŸ‡· Brazil
vs
πŸ‡±πŸ‡° Sri Lanka
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change
6–36%
Post-IMF program stabilization; rates held
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
β–Ό -0.5pp vs 2025
18%
18% stable; debt servicing requires revenue
No change
Corporate Tax Rate
Corporate Tax Rate
34%
34% maintained; reform discussions ongoing
No change
30%
30% maintained
No change
Capital Gains Tax
Capital Gains Tax
15–22.5%
Offshore income now fully captured
No change
10%
10% CGT maintained
No change
Social Security & Payroll
Social Security / Payroll
~36%
Payroll simplification proposals ongoing
No change
~12%
EPF reform; adequacy improving
No change
State, Regional & Local Taxes

πŸ‡§πŸ‡· Brazil β€” State & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

πŸ‡±πŸ‡° Sri Lanka β€” Provincial & Local Authority Taxes

Sri Lanka's 9 provincial councils have some tax powers including turnover tax, certain business taxes, and stamp duties within their provinces. Local authorities (municipal councils, urban councils, pradeshiya sabhas) levy property tax (Assessment rate) at 25% of annual value and various service fees. The Inland Revenue Department (IRD) administers national taxes. Sri Lanka went through a severe debt crisis in 2022–23; significant IMF-backed tax reforms dramatically raised income tax rates and broadened the tax base.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Brazil vs Sri Lanka: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡° Sri Lanka has a higher top income tax rate (0–27.5% vs 6–36%). πŸ‡§πŸ‡· Brazil is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Brazil has a higher consumption tax (~27.5% combined vs 18%).

🏒 Corporate Tax: πŸ‡±πŸ‡° Sri Lanka offers a lower corporate rate (30% vs 34%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡±πŸ‡° Sri Lanka taxes investment gains at a lower rate (10% vs 22.5%), benefiting investors.

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