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Japan vs Sri Lanka
Tax Rate Comparison

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

๐Ÿ‡ฏ๐Ÿ‡ต Japan
vs
๐Ÿ‡ฑ๐Ÿ‡ฐ Sri Lanka
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
5โ€“45%
Basic deduction increase for low earners
No change
6โ€“36%
Post-IMF program stabilization; rates held
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
8โ€“10%
No rate change; digital services tax under review
No change
18%
18% stable; debt servicing requires revenue
No change
Corporate Tax Rate
Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
30%
30% maintained
No change
Capital Gains Tax
Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
10%
10% CGT maintained
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~12%
EPF reform; adequacy improving
No change
State, Regional & Local Taxes

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

๐Ÿ‡ฑ๐Ÿ‡ฐ 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 2022โ€“23; significant IMF-backed tax reforms dramatically raised income tax rates and broadened the tax base.

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

Japan vs Sri Lanka: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (5โ€“45% vs 6โ€“36%). ๐Ÿ‡ฑ๐Ÿ‡ฐ Sri Lanka is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Sri Lanka has a higher consumption tax (8โ€“10% vs 18%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฑ๐Ÿ‡ฐ Sri Lanka offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฑ๐Ÿ‡ฐ Sri Lanka taxes investment gains at a lower rate (10% vs 20.315%), benefiting investors.

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