Sri Lanka vs Bhutan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ฐ Sri Lanka โ 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 2022โ23; significant IMF-backed tax reforms dramatically raised income tax rates and broadened the tax base.
๐ง๐น Bhutan โ Dzongkhag & Thromde Taxes
Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.
Sri Lanka vs Bhutan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐ฐ Sri Lanka has a higher top income tax rate (6โ36% vs 0โ25%). ๐ง๐น Bhutan is more favourable for high earners.
๐ VAT/Sales Tax: Sri Lanka has a higher consumption tax (18% vs 0%).
๐ข Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).
๐ Capital Gains: ๐ง๐น Bhutan taxes investment gains at a lower rate (0% vs 10%), benefiting investors.