Thailand vs Malaysia taxes (2026): income, company and dividend tax

Thailand vs Malaysia tax rates at a glance

Tax	🇹🇭 Thailand	🇲🇾 Malaysia
Income tax	Personal income tax: 0% to 35% Top bracket: 35% Foreign income: Taxable if remitted Social security: 5% (THB 750 max)	Resident income tax: 0% - 30% Non-resident income tax: 30% Dividend tax: 2% Employee EPF: 11% Employer EPF: 12% - 13%
Corporate tax	Corporate income tax: 20% SME corporate tax: 0% / 15% / 20% Foreign-company WHT: 15% Petroleum income tax: 50% Top-up tax: 15%	Standard corporate tax: 24% SME tier: 15% / 17% / 24% Petroleum income tax: 38% Marginal field rate: 25% QDMTT / MTT: 15%
Capital gains tax	Capital gains tax: 0% to 35% Listed share gains: 0% Crypto gains: 0% Ordinary income treatment: 35%	Personal capital gains tax: 0% RPGT: 0% - 30% Corporate CGT: 10% Gross disposal option: 2% Foreign capital asset gains: 24%
Dividend tax	Dividend withholding tax: 10% Resident individuals: 10% Resident corporations: 0% / 10% Non-residents: 10%	Dividend withholding tax: 0% Individual dividend tax: 2% Foreign dividend tax: 0% / conditional Corporate dividend tax: 0%
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%
Inheritance / estate tax	Inheritance tax: 10% Ascendants and descendants: 5% Spouse: 0% Threshold: THB 100 million	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Probate tax: 0%
VAT / GST / sales tax	VAT: 7% (temporary)	VAT / GST: No Sales / service tax: 5% - 10% / 6% - 8%

Who wins on each tax

Personal income taxMalaysia

Malaysia's top resident rate is 30%, below Thailand's 35% top bracket.

Corporate taxThailand

Thailand's 20% corporate tax is lower than Malaysia's 24% standard rate.

Capital gains taxThailand

Thailand has no separate general capital gains tax.

Dividend taxMalaysia

Malaysia's 2% dividend tax on resident-company dividends above RM100,000 is lighter than Thailand's 10% dividend tax.

Indirect taxMalaysia

Malaysia has no VAT, while Thailand still runs a 7% VAT through 30 September 2026 unless extended.

The verdict

Thailand is the stronger company jurisdiction here. Its 20% corporate rate is lower than Malaysia's 24%, and it does not have a separate general capital gains tax in the way Malaysia now does for some gains.

Malaysia is better for personal income planning. Its top resident rate is 30%, below Thailand's 35% top bracket, and dividend taxation is also much lighter for smaller shareholder structures.

The practical rule is simple: choose Thailand if you care most about the operating company and investment gains; choose Malaysia if you are an individual or dividend-focused owner and want the lighter personal stack.

How to read this comparison

Thailand and Malaysia are both practical ASEAN bases, but they serve different profiles. Thailand is usually better for companies and gains, while Malaysia is usually better for people and dividend-heavy planning.

Frequently asked questions

Is Thailand or Malaysia better for tax?

Thailand is usually better for companies and some investors. Malaysia is usually better for individuals and dividend-heavy ownership structures.

Does Thailand tax foreign income?

Thai residence and remittance rules matter a lot, because foreign income earned from 1 January 2024 onward can become taxable when remitted.