At a glance: Tax rates across Asean

JULY 03, 2018 - 5:56 PM

The Association of Southeast Asian Nations (Asean) has taken significant steps towards economic integration, particularly with the launch of the Asean Economic Community. Import tariffs have been reduced and the Asean member states have agreed to eliminate certain withholding taxes and complete double taxation agreements.

But companies interested to venture into or invest in the Asean markets will need to be aware that taxation regimes still vary widely across the 10 member states.

Here is ASEAN BUSINESS’ summary table of the key tax rates across the 10 Asean markets.

Our huge caveat: these are merely the “headline” rates. Often, there exist multiple criteria on when the rates do and do not apply, as well as rebates and exemptions for certain businesses. So the effective tax bill may differ hugely, depending on the type of business, its significance to the particular market, and its profitability. Personal income tax rates also refer the top marginal rates for each market.

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Market voices on:

We’ve also provided references below to sources and publications, should you require it. The following table is intended only for quick reference.

 

Market

Tax Authority

Corporate Tax

Indirect Tax

Personal Tax

Singapore

Inland Revenue Authority of Singapore (IRAS) https://www.iras.gov.sg/irashome/Quick-Links/Tax-Rates/

17

7

22

Malaysia

Inland Revenue Board of Malaysia http://www.hasil.gov.my/index.php

24

6

28

Indonesia

The Directorate General of Taxes http://www.pajak.go.id/?lang=en

25

10

30

Philippines

Bureau of Internal Revenue https://www.bir.gov.ph/

30

12

35

Thailand

The Revenue Department http://www.rd.go.th/publish/index_eng.html

20

7

35

Cambodia

General Department of Taxation http://www.tax.gov.kh/en/

20

10

20

Vietnam

General Department of Taxation http://www.gdt.gov.vn/wps/portal/english

20

10

35

Myanmar

Internal Revenue Department http://www.irdmyanmar.gov.mm/en

25

25

2

Laos

Tax Department http://tax.gov.la/Eng_WebPAges/About.aspx

24

10

24

Brunei

The Revenue Division, Ministry of Finance http://mof.gov.bn/Divisions/revenue-about-us.aspx

18.5

0

0

Sources: Tax authorities, KPMG, Deloitte, EY, PwC

 

Need more information?

Official: The official Asean website has a page on taxation, though not fully updated.

Deloitte: The Deloitte International Tax Source’s online database shows current rates for a range of taxes for 66 jurisdictions. The Asean markets not covered by DITS are Brunei, Cambodia, Laos and Myanmar. But all are covered in Deloitte’s Corporate Tax 2018 and Withholding Tax 2018 guides.

EY: Their 2018 Worldwide Corporate Tax Guide allows readers to search online by country, or download a PDF copy of the full guide.

KPMG: Their “Tax Rates Online” tool allows users to compare corporate, indirect, individual income, and social security tax rates for individual countries, or across multiple countries.

PwC: Their Worldwide Tax Summaries Online tool covers more than 150 territories, including all the Asean markets except Brunei. It is also available as a PDF guide.

 

Here are our TAX GUIDES for each of the 10 Asean markets: Singapore | Malaysia | Indonesia | Thailand | Philippines | Vietnam | Cambodia | Myanmar | Laos | Brunei