Tonga vs Brazil
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐น๐ด Tonga โ Tonga Tax System
Tonga levies income tax at a flat 20% on income above the personal allowance. No capital gains tax. Consumption tax at 15% replaced the previous sales tax. The economy is heavily reliant on remittances (over 40% of GDP) from Tongans abroad, mainly in Australia, New Zealand and the US. Agriculture and fishing are the main domestic sectors.
๐ง๐ท Brazil โ State & Municipal Taxes
Brazil has one of the world's most complex tax systems. States levy ICMS at 7%โ18% varying by state. Municipalities levy ISS (services tax) at 2%โ5% 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%.
Tonga vs Brazil: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ง๐ท Brazil has a higher top income tax rate (0โ20% vs 0โ27.5%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Brazil has a higher consumption tax (15% vs ~27.5% combined).
๐ข Corporate Tax: ๐น๐ด Tonga offers a lower corporate rate (25% vs 34%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 22.5%), benefiting investors.