Malaysia vs Philippines taxes (2026): income, dividends and CGT

Malaysia vs Philippines tax rates at a glance

Tax	🇲🇾 Malaysia	🇵🇭 Philippines
Income tax	Resident income tax: 0% - 30% Non-resident income tax: 30% Dividend tax: 2% Employee EPF: 11% Employer EPF: 12% - 13%	Taxable income up to PHP 250,000: 0% PHP 250,001 to PHP 400,000: 15% of excess PHP 400,001 to PHP 800,000: PHP 22,500 + 20% PHP 800,001 to PHP 2,000,000: PHP 102,500 + 25% PHP 2,000,001 to PHP 8,000,000: PHP 402,500 + 30% Over PHP 8,000,000: PHP 2,202,500 + 35%
Corporate tax	Standard corporate tax: 24% SME tier: 15% / 17% / 24% Petroleum income tax: 38% Marginal field rate: 25% QDMTT / MTT: 15%	Standard domestic corporate tax: 25% Qualifying small domestic company: 20% Minimum corporate income tax: 2% of gross income Non-resident foreign corporation: 25% of gross income Qualifying NRFC dividend rate: 15% VAT: 12%
Capital gains tax	Personal capital gains tax: 0% RPGT: 0% - 30% Corporate CGT: 10% Gross disposal option: 2% Foreign capital asset gains: 24%	Unlisted shares: 15% of net gain Listed shares and covered securities: 0.1% of gross sale Capital-asset real property: 6% Ordinary business assets: Regular income tax Digital assets: No dedicated rate
Dividend tax	Dividend withholding tax: 0% Individual dividend tax: 2% Foreign dividend tax: 0% / conditional Corporate dividend tax: 0%	Domestic dividend to resident individual: 10% Domestic dividend to domestic corporation: 0% Domestic dividend to qualifying NRFC: 15% Domestic dividend to other NRFC: 25% Treaty rate: May be lower
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Broad net wealth tax: 0% Basic real property tax in a province: Up to 1% Basic real property tax in a city or Metro Manila municipality: Up to 2% Special Education Fund levy: 1% Idle-land levy: Up to 5%
Inheritance / estate tax	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Probate tax: 0%	Estate tax: 6% Standard estate deduction: PHP 5 million Donor tax: 6% Annual exempt gifts: PHP 250,000 Family-home deduction: Up to PHP 10 million
VAT / GST / sales tax	VAT / GST: No Sales / service tax: 5% - 10% / 6% - 8%	VAT: 12%

Who wins on each tax

Personal income taxMalaysia

Malaysia's resident individual scale tops at 30%, compared with the Philippines' 35%; the Philippine 8% gross-receipts option is limited to qualifying taxpayers.

Corporate taxTie

Malaysia's standard corporate rate is 24% with SME tiers; the Philippines uses 25% generally and 20% for qualifying small companies.

Capital gains taxMalaysia

Malaysia generally has no broad personal CGT, although RPGT applies to property; the Philippines taxes unlisted-share gains at 15% and capital-asset property at 6%.

Dividend taxMalaysia

Malaysia generally has 0% dividend WHT and a 2% individual dividend tax above RM100,000 from resident companies; Philippine resident individuals generally face 10% final tax.

Inheritance taxMalaysia

Malaysia has no inheritance, estate or gift tax; the Philippines generally charges 6% estate tax after deductions and a separate 6% donor tax.

The verdict

Malaysia's personal scale reaches 30%, below the Philippines' 35%, while qualifying Philippine non-VAT self-employed taxpayers can elect an 8% gross-receipts regime.

Malaysia generally has no broad personal CGT and uses a 2% dividend tax above RM100,000 from resident companies; the Philippines commonly taxes unlisted gains at 15% and resident individual dividends at 10%.

Choose Malaysia for investment income and a regional company base; choose the Philippines for English-language operations, local-market scale or the qualifying small-business option. Residence, source, PE, CFC and treaty rules still matter.

How to read this comparison

Malaysia usually wins the recurring investment-tax comparison; the Philippines can win for English-speaking operations and qualifying small businesses. Source and residence rules prevent a simple rate-only answer.

Frequently asked questions

Is Malaysia or the Philippines lower tax?

Malaysia is usually lower for dividends and personal investment gains and has a lower top personal rate. The Philippines can be commercially attractive and offers an 8% small-business regime only when its conditions are met.

Does Malaysia have inheritance tax?

Malaysia does not impose inheritance, estate or gift tax, but succession, probate and property-transfer administration still apply.