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Malaysia vs Philippines
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฒ๐Ÿ‡พ Malaysia
vs
๐Ÿ‡ต๐Ÿ‡ญ Philippines
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“30%
30% top rate; Pillar Two compliance measures
No change
0โ€“35%
Final TRAIN phase; potential review by Congress
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
Service tax 8% maintained; GST return unlikely
No change
12%
12% standard; no change
No change
Corporate Tax Rate
Corporate Tax Rate
24%
24% stable; potential reduction discussed for competitiveness
No change
20โ€“25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
Capital Gains Tax
Capital Gains Tax
10โ€“30%
CGT on unlisted shares fully embedded in system
No change
6โ€“15%
6%/15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~23%
EPF reviewing contribution rates and fund adequacy
No change
~16%
Universal health coverage push increasing PhilHealth rates
No change
State, Regional & Local Taxes

๐Ÿ‡ฒ๐Ÿ‡พ Malaysia โ€” State & Local Authority Taxes

Malaysia's 13 states and 3 federal territories have limited independent taxing powers. States levy quit rent (cukai tanah) on land, assessment rates (cukai pintu/taksiran) on property through local councils, and royalties on natural resources. Petroleum royalties are a major state revenue in Sabah, Sarawak, and Terengganu. Local councils (majlis perbandaran) levy property assessment at 6%โ€“12% of estimated annual rental value. No state income taxes exist โ€” this is federal.

๐Ÿ‡ต๐Ÿ‡ญ Philippines โ€” Local Government Unit (LGU) Taxes

The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%โ€“2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Malaysia vs Philippines: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ต๐Ÿ‡ญ Philippines has a higher top income tax rate (0โ€“30% vs 0โ€“35%). ๐Ÿ‡ฒ๐Ÿ‡พ Malaysia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Philippines has a higher consumption tax (10% vs 12%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฒ๐Ÿ‡พ Malaysia offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ญ Philippines taxes investment gains at a lower rate (15% vs 30%), benefiting investors.

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