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Sri Lanka vs Barbados
Tax Rate Comparison

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

🇱🇰 Sri Lanka
vs
🇧🇧 Barbados
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
6–36%
Post-IMF program stabilization; rates held
No change
12.5–28.5%
28.5% top; competitive Caribbean jurisdiction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% stable; debt servicing requires revenue
No change
17.5%
17.5% stable
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% maintained
No change
5.5–9%
Tiered rate; Pillar Two compliance for large groups
No change

Capital Gains Tax

Capital Gains Tax
10%
10% CGT maintained
No change
0%
No CGT — sustained advantage
No change

Social Security & Payroll

Social Security / Payroll
~12%
EPF reform; adequacy improving
No change
~18.1%
NIS contributions; pension reform needed
No change
State, Regional & Local Taxes

🇱🇰 Sri LankaProvincial & 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.

🇧🇧 BarbadosParish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%–0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

⚠️ 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.

Sri Lanka vs Barbados: Key Tax Differences (2026)

💰 Income Tax: 🇱🇰 Sri Lanka has a higher top income tax rate (6–36% vs 12.5–28.5%). 🇧🇧 Barbados is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (18% vs 17.5%).

🏢 Corporate Tax: 🇧🇧 Barbados offers a lower corporate rate (9% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇧🇧 Barbados taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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