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Panama vs Philippines Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%Lower
Philippines35%
Corporate Tax
Panama25%
Philippines25%
Capital Gains
Panama10%Lower
Philippines15%
VAT / Sales Tax
Panama7%Lower
Philippines12%
| Category | Panama | Philippines |
|---|---|---|
| Tax System | Territorial | Progressive |
| Top Income Tax | 25% | 35% |
| Corporate Tax | 25% | 25% |
| Capital Gains | 10% | 15% |
| VAT / Sales Tax | 7% | 12% |
| Crypto Tax | No | No |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 43 |
| Currency | PAB | PHP |
The bottom line: Panama vs Philippines
Panama has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Panama runs a territorial tax system, while Philippines uses a progressive one. Philippines has the wider tax-treaty network (43 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (25% vs 35%)
- Corporate tax: identical in both (25%)
- Capital gains tax: Panama is lower (10% vs 15%)
- VAT / sales tax: Panama is lower (7% vs 12%)