Malaysia vs Vietnam taxes (2026): income, corporate tax and VAT

Malaysia vs Vietnam tax rates at a glance

Tax	🇲🇾 Malaysia	🇻🇳 Vietnam
Income tax	Resident income tax: 0% - 30% Non-resident income tax: 30% Dividend tax: 2% Employee EPF: 11% Employer EPF: 12% - 13%	Resident employment PIT: 5% - 35% Highest bracket tax: 35% Non-resident employment PIT: 20% Dividend PIT: 5% Employee social insurance: 8% Employer social insurance: 17.5%
Corporate tax	Standard corporate tax: 24% SME tier: 15% / 17% / 24% Petroleum income tax: 38% Marginal field rate: 25% QDMTT / MTT: 15%	Standard CIT: 20% Qualifying small enterprises: 15% / 17% Preferential CIT: 10% / 15% / 17% Oil and gas CIT: 25% - 50% Certain mineral resources: 40% - 50%
Capital gains tax	Personal capital gains tax: 0% RPGT: 0% - 30% Corporate CGT: 10% Gross disposal option: 2% Foreign capital asset gains: 24%	Securities transfer: 0.1% Real estate transfer: 2% Individual capital assignment: 20% Corporate gains: 20% CIT
Dividend tax	Dividend withholding tax: 0% Individual dividend tax: 2% Foreign dividend tax: 0% / conditional Corporate dividend tax: 0%	Corporate dividend WHT: 0% Individual dividend PIT: 5% Domestic dividends to companies: 0% WHT Foreign dividends for residents: PIT applies
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0% broad tax
Inheritance / estate tax	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Probate tax: 0%	Inheritance PIT: 10% Estate tax: 0% Gift PIT: 10% New threshold: VND 20m
VAT / GST / sales tax	VAT / GST: No Sales / service tax: 5% - 10% / 6% - 8%	VAT: 10% standard
Standard VAT / indirect tax	SST 5% - 10% / 6% - 8%	10% VAT; 8% for eligible supplies through 31 Dec 2026
Resident personal top rate	30%	35%

Who wins on each tax

Personal income taxMalaysia

Malaysia's resident top rate is 30%, below Vietnam's 35% top employment rate.

Corporate taxVietnam

Vietnam's standard 20% corporate rate is below Malaysia's 24% rate for most companies.

Capital gains taxMalaysia

Malaysia's CGT regime is more targeted, while Vietnam taxes several categories of transfers and investment income.

VAT / indirect taxMalaysia

Malaysia has SST instead of a broad GST. Vietnam's normal VAT is 10%, with a temporary 8% rate for eligible goods and services through 2026.

Estate / inheritance taxMalaysia

Malaysia has no inheritance tax, while Vietnam can tax inheritances and gifts at 10%.

The verdict

Malaysia usually wins for individuals. Resident personal rates reach 30%, there is no net wealth tax, no inheritance tax, and capital gains taxation is more targeted. Vietnam taxes resident employment income up to 35% and has specific taxes on securities, real estate, inheritances and gifts.

Vietnam can win for ordinary company profits because its standard corporate tax rate is generally 20%, compared with Malaysia's 24% rate for most companies. That headline advantage can disappear if foreign contractor tax, VAT, social insurance or licensing issues are the real cost driver. Vietnam's normal VAT rate is 10%, though a temporary 8% rate applies to eligible goods and services through 31 December 2026.

Choose Malaysia for a lighter personal and investor profile. Choose Vietnam when the operating business is actually in Vietnam and the lower corporate headline rate fits the numbers.

How to read this comparison

Malaysia is usually the better personal tax base. Vietnam can be the better operating-company base when the business is genuinely local and the 20% corporate rate is the main issue.

Which one fits you

🇲🇾 Choose Malaysia if you're a…

Individuals comparing personal tax rates
Investors with capital gains planning needs
Founders wanting an English-speaking ASEAN base

🇻🇳 Choose Vietnam if you're a…

Companies operating mainly in Vietnam
Manufacturers and local market operators
Employers with Vietnam-based teams and revenue

Frequently asked questions

Is Malaysia or Vietnam better for tax?

Malaysia is usually better for individuals and investors. Vietnam can be better for companies focused on the standard corporate income tax rate.

Does Vietnam tax worldwide income?

Vietnamese tax residents are generally taxed on worldwide taxable income, while nonresidents are taxed on Vietnam-related income.

Does Malaysia have capital gains tax?

Malaysia does not have a broad capital gains tax on every asset, but it has targeted rules for real property and certain share disposals.