|BRUNEI DARUSSALAM||INDONESIA||LAO PDR||MALAYSIA||MYANMAR||PHILIPPINES||SINGAPORE||THAILAND||VIETNAM|
|1. Corporate Tax|
|30%|| 3 rates:* ~ 25 million rupiah = 10%
* 25 ~ 50 million rupiah = 15%
* 50 ~ million rupiah = 30%
|A foreign invested company is taxed at 20% (or at a lower rate, according to the investment incentives it is granted) or 0.5% of turnover (sales) whichever is greater. Domestic invested companies are taxed at 35%. Unless they invest in promoted industries, in which case their tax rate is 30% (or lower as per applicable investment incentives applicable to domestic investors).||The corporate income tax is 28%. In the case of a company carrying on petroleum production, the applicable tax rate is 38%.||Corporations incorporated in Myanmar are treated as resident and taxed at the rate of 30 per cent on income accruing or arising in Myanmar and outside of Myanmar.||Corporate income tax: gradual reduction of tax rates to 34% in 1998, 33% in 1999 and 32% in 2000 onwards.||Corporate tax is 26% of taxable income.|| Corporate Income Tax: 30% of net profits.Foundations and Associations pay income taxes at a rate of 2-10% of gross business income, depending upon the activity.
International transport companies face a rate of 3% of gross ticket receipts and 3% of gross freight charges
|See Profits Tax|
|2. Value Added Tax / Sales Tax|
|N.A||10%|| There are turnover taxes on the sale or importation of products. These taxes range from 3% to 15%.Imports of capital equipment, spare parts, material and means of production are exempted from the turnover tax on import.
Imports of raw materials and components used for export production are exempt from turnover tax on import.
Imports of raw materials and components for use in import substitution are subject to turnover taxes on importation at negotiated rates.
| a) There is no Value Added Taxb) Sales Tax
This is an ad valorem single stage tax imposed at the import and manufacturing levels. Manufacturers are required to be licensed under the Sales Tax Act 1972. However, manufacturers whose annual sales turnover do not exceed RM100,000 are exempted from licensing.
The general rate for sales tax is 10%. However, raw materials and machinery for use in the manufacture of taxable goods are normally exempted from the tax. Inputs for selected non-taxable products are also exempted. Certain non-essential foodstuffs and building materials are taxed at 5% while cigarettes and liquor are taxed at 15%.
Primary commodities, basic foodstuffs, basic building materials, certain agricultural implements and heavy machinery for use in the construction industry are exempted. Certain tourist and sports goods, books, newspapers and reading materials are also exempted.
c) Service Tax
This tax is imposed on certain goods and services provided in certain prescribed establishments. The goods include food, drinks and tobacco, while the main services are provision of rooms for lodging, provision of premises for meetings, conventions, and culture and fashion shows; health services, and professional and consultancy services provided by legal, engineering, surveyor, architectural, accounting, advertising and other consultancy firms. The tax base has been widened to include services provided by advertising firms, insurance companies, motor vehicles service and repair centers, telecommunication services, security and guard services, recreational clubs, estate agents, parking space services, courier service firms, dentists,veterinary doctors, provision of accommodation and food by private hospitals and credit cards companies. Currently, hotels having more than 25 rooms and restaurants within or outside hotels are subject to this tax. Generally, the imposition of service tax is subject to a specific threshold based on annual turnover ranging from RM 150,000 to RM500,000.
|Commercial Tax is payable on goods, imported or produced in Myanmar, trading sales, and services ranging from 0%-200%.||10% (imposed on sales of goods and services exceeding 200,000 pesos.)||3% (Goods &Services Tax)|| 10% starting from 16 August 1997. Those who are affected by this tax are : producers, providers of services, wholesalers, retailers, exporters and importers.Special exemption from VAT:
* Operators earning less than 600,000 baht per year.
* Sale or import of agricultural products, livestocks, and agricultural inputs, such as fertilizer, feed and chemicals,
* Sale or import of published materials and books.
* Auditing, legal services, health services and other professional services.
* Cultural and religious services.
* Educational services.
* Services provided by employees under employment contracts.
* The sale of goods as specified by Royal Decree.
* Goods exempt from import duties, under IEAT Act.
* Domestic transportation (excluding airlines) and international transportation (excluding air and sea lines).
|From 1 January 1999 VAT shall be applied at the rates from 0% to 20%, depending on types of goods or services.|
|3. Withholding Tax|
|20%|| Withholding tax 20% on dividends interests, royalties, technical, management fees for services:1. Payment to residents = 15%
2. Payment to Non-residents = 20%
|10% on dividends.|| Non-resident individuals are subject to a withholding tax which is a final tax:* Special classes of income – 10%.
– use of movable property
– technical advice, assistance or services
– installation services on the supply of plant, machinery, etc.
– personal services associated with the use of intangible property
* Services of a public entertainer – 15%
* Interest – 15%.
|The withholding tax rates are dependent on the types of payments (interest, royalties, and payment for the work done under different kinds of organisations) graduating from 3.5 per cent to 15 per cent.There is no withholding tax on dividends.||20% on interest and royalty||15% for payments to non-residents of royalties, interest, ‘know-how’ fees and rent for movable properties.||Withholding tax on remittances of profits/dividends 10%. There is no withholding tax on capital gains or on the share of profit paid to foreign investors in mutual funds, if in the SET.|| Withholding tax shall be applied at the following rates:* Five per cent of profits transferred abroad in respect of foreign investors contributing no less than ten (10) million United States dollars to the legal capital or capital of a business co-operation;
* Seven per cent of profits transferred abroad in respect of foreign investors contributing from five million United States dollars to less than ten (10) million United States dollars to the legal capital or capital of a business co-operation;
* Ten (10) per cent of profits transferred abroad in respect of foreign investors contributing less than five million United States dollars to the legal capital or capital of a business co-operation.
|4. Personal Income Tax|
|N.A.||The same rates as corporate tax.||10% for foreign persons and foreign investors.|| All individuals are liable to tax on income accrued in, derived from or remitted to Malaysia. The rate of tax depends on the resident status of the individual which is determined by the duration of his stay in the country (as stipulated under Section 7 in the Income Tax Act 1967).A resident individual is taxed on his chargeable income at graduated rates from 2% to 30% after the deduction of tax reliefs. However, an individual with chargeable income of less than RM2,500 in taxed at zero rate.
Generally, a non-resident individual is liable to tax at the rate of 30% and he is not entitled to any personal relief.
|A non-resident’s salary is taxed at the rate of 35 per cent. Other income is taxed at the minimum rate of 35 per cent or at the resident rates, graduating from 3% to 50%.||Uniform individual income tax rates ranging from 5% to 34% in 1998 with a provision for annual deduction of top rate to 33% in 1999 and 32% in 2000 onwards.||Graduated personal income tax rates of 2-26% depending on income tax bracket.|| * 0-100,000 baht = 5%* 100,001-500,000 baht = 10%
* 500,001-1,000,000 baht = 20%
* 1,000,001-4,000,000 baht = 30%
* over 4,000,000 baht = 37%
|Personal income tax is imposed on in respect of income of more than five million VND and subject to graduated rates at up to 50%.|
|5. Other Taxes|
| Estate Duty: Estate duty of three per cent is levied on an estate of over B$2,000,000.00Stamp Duty: Levied on a variety of documents.
Import Duty: Basic foodstuffs and goods for industrial use are exempted import duty
Municipal Taxes: Levied on lands, houses and buildings within any Municipal Board area.
Land Tax: Land duty is charged at B$25.00 per 0.1 hectare for industrial site.
|Luxury tax, Stamp tax, Land and Building tax, Property tax and Double Taxation Agreements.||Business Registration Tax of 0.1% of capital value. There are excise duties (luxury taxes) on a limited range of products (such as cigarettes, alcoholic beverages, cars and gasoline) at various rates.|| Import Duty* Import duties are levied on a large number of imports, and are imposed either at an ad valorem or specific rates. The ad valorem rates vary from 5% to 300% (CBU motorcars). Over the last few years, import duties on a wide range of raw materials, components and machinery have been abolished.
* Malaysia is committed to the ASEAN Common Effective Preferential Tariff (CEPT). Under the CEPT, import duties imposed on all goods from ASEAN countries will be reduced to 0-5% by the year 2003.
* Tariffs on a wide range of products will also be reduced in accordance with Malaysia’s commitments under the World Trade Organisation (WTO).
Real Property Gains Tax
* Capital gains are generally not subject to tax in Malaysia. Real Property Gains Tax is charged on gains arising from the disposal of real property situated in Malaysia or of interest, option or other rights in or over such land as well as the disposal of shares in real property companies. The rates of tax are as follows:
– Disposal within 2 years – 30%
– Disposal in the 3rd year – 20%
– Disposal in the 4th year – 15%
– Disposal in the 5th year – 5%
– Disposal in the 6th year and thereafter – company: 5% and individual: nil.
* For individuals who are citizens or permanent residents, gains from disposal of land held after five years are not subject to this tax. They are also entitled to an exemption of RM5,000 or 10% of the gains, whichever is greater. In addition, they also enjoy a one-time tax exemption on the gains arising from the disposal of one private residence.
* For non-citizens and non-permanent resident individuals, tax is levied at a flat rate of 30% irrespective of the holding period of the assets.
* Levied on selected products manufactured locally i.e. cigarettes, liquors, playing cards, mahjong tiles, petrol, diesel and motor vehicles.
|Stamp duty, Property or Municipal taxes, Customs duties and Excise duty.Taxes levied on utility of State-owned properties such as taxes on land, water tax, embankment tax, taxes on extraction of forest products, minerals, rubber and fisheries.||Capital gains tax, dividends tax, commodity tax, business tax, etc. (Under the Tax Treaties between Philippines and Japan, double taxation is prevented.)||Property taxes, taxes on vehicles, betting taxes, and stamp duties.|| Petroleum income tax, Stamp tax, Excise tax, Property taxA specific business tax of approximately 3% is imposed, in lieu of VAT, on the following businesses:
* Commercial banks and similar businesses.
* Financial securities firms and credit fonciers.
* Sales of non-movable properties.
* Insurance companies
* Sales on the stock exchange.
* Pawn shops.