Table of Tax Comparison:
Taxes and mandatory contributions that a medium-size company
must pay or withhold in a given year in AsiaResource:
the World Bank Group’s Doing Business
Comparison Table: Runckel & Associates
| Please note that government tax incentives that are offered by many countries throughout the region greatly affects the effective tax rate in the initial years. Please use this chart with the tax incentive information as many countries like Thailand and Vietnam give very generous tax incentives for target companies that can make your effective tax "zero" in the first 5-10 years. Also, remember that many Asian countries are currently discussing, following Hong Kong and Singapore's lead, in reducing taxes and that effective tax rates will likely decrease in several of the countries in the next few year. |
|
Value added tax (VAT) |
Social security and housing fund contributions |
Corporate income tax |
|
|
Cambodia |
12 payments per year, 60 hours, 10% |
12 payments per year,25 hours, 20% on profits paid |
|
| China | 12 payments per year, 384 hours, 17% | 12 payments per year, 288 hours, 44% | 5 payments per year, 200 hours, 33% on profits paid |
| Hong Kong | 1 payments per year, 30 hours, 5% | 1 payments per year, 50 hours, 17.5% on profits paid | |
| India | 9 payments per year, 12.5% | 12 payments per year, 96 hours, 12% | 4 payments per year, 40 hours, 33.66% on profits paid |
| Indonesia | 12 payments per year, 200 hours, 10% | 12 payments per year, 200 hours, 4% | 2 payments per year, 176 hours, 10-30% on profits paid |
| Japan | 1 payments per year, 35 hours, 5% | 1 payments per year, 175 hours, 30% on profits paid | |
| Korea | 1 payments per year, 50 hours, 10% | 1 payments per year, 120 hours, 14.3-27.5% on profits paid | |
| Laos | 12 payments per year, 72 hours, 5% | 12 payments per year, 72 hours, 5% | 4 payments per year, 36 hours, 35% on profits paid |
| Malaysia | 12 payments per year, 116 hours, About 1.75% with a cap of RM34.15 | 1 payments per year, 50 hours, 20% on first RM500,000 and 28% on the balance | |
| Philippines | 1 payments per year, 64 hours, 10% | 12 payments per year, 14 hours, 6.07% and 2% respectively | 1 payments per year, 16 hours, 32.5% |
| Singapore | 1 payments per year, 10 hours, 5% | 12 payments per year, 10 hours, 13% on profits paid | 1 payments per year, 10 hours, 20% on profits paid |
| Thailand | 12 payments per year, 36 hours, 7% | 12 payments per year, 36 hours, 5% | 2 payments per year, 32 hours, 30% on profits paid |
| Vietnam | 13 payments per year, 300 hours, 10% | 12 payments per year, 400 hours, 15% | 5 payments per year, 350 hours, 28% on profits paid |
Details
for each country:
Cambodia | China | Hong Kong | India | Indonesia | Japan | Korea | Laos | Malaysia |
Phillippines | Singapore | Thailand | Vietnam
|
Cambodia |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
12 |
60 |
10% |
value added |
|
Social security/housing fund contributions |
|
|
|
|
|
Corporate income tax |
12 |
25 |
20% on profits or 1% on turnover whichever is higher |
taxable income |
|
China |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
12 |
384 |
17% |
value added |
|
Social security/housing fund contributions |
12 |
288 |
44% |
gross salaries |
|
Corporate income tax |
5 |
200 |
33% |
taxable income |
|
Land tax (use) |
1 |
|
CNY 0.5 to 7.5 per square meter |
land area |
|
Business tax |
1 |
|
5% |
capital gains from property sale |
|
Hong Kong |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
|
|
|
|
|
Social security/housing fund contributions |
1 |
30 |
5% |
gross salaries |
|
Corporate income tax |
1 |
50 |
17.5% |
taxable income |
|
India |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
9 |
|
12.5% |
value added |
|
Social security/housing fund contributions |
12 |
96 |
12% |
gross salaries |
|
Corporate income tax |
4 |
40 |
33.66% |
taxable income |
|
Indonesia |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT)
|
12 |
200 |
10% |
value added |
|
Social security/housing fund contributions
|
12 |
200 |
4% |
gross salaries |
|
Corporate income tax
|
2 |
176 |
10-30% |
taxable income |
|
Japan |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT)
|
1 |
35 |
5% |
value added |
|
Social security/housing fund contributions
|
|
|
|
|
|
Corporate income tax
|
1 |
175 |
30% |
taxable income |
|
Korea |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT)
|
1 |
50 |
10% |
value added |
|
Social security/housing fund contributions
|
|
|
|
|
|
Corporate income tax
|
1 |
120 |
14.3%,27.5% |
taxable income |
|
Laos |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT)
|
12 |
72 |
5% |
value added |
|
Social security/housing fund contributions
|
12 |
72 |
5% |
gross salaries |
|
Corporate income tax
|
4 |
36 |
35% |
taxable income |
|
Malaysia |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
|
|
|
|
|
Social security/housing fund contributions |
12 |
116 |
About 1.75% with a cap of RM34.15 |
gross salaries (varies by employee) |
|
Corporate income tax |
1 |
50 |
20% on first RM500,000 and 28% on the balance |
taxable income |
|
Philippines |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
1 |
64 |
10% |
value added |
|
Social security/housing fund contributions |
12/12 |
14/- |
6.07% /2% or P100 per worker |
gross salaries |
|
Corporate income tax |
1 |
16 |
32.5 |
taxable income |
|
Business tax *Local business tax |
1 |
|
0.68% |
previous year turnover |
|
Singapore |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
1 |
10 |
5% |
value added |
|
Social security/housing fund contributions |
12 |
10 |
13% |
gross salaries |
|
Corporate income tax |
1 |
10 |
20% |
taxable income |
|
Thailand |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
12 |
36 |
7% |
value added |
|
Social security/housing fund contributions |
12 |
36 |
5% |
gross salaries |
|
Corporate income tax |
2 |
32 |
30% |
taxable income |
|
Business tax *Business specific tax |
1 |
|
3.3% |
taxable income |
|
Vietnam |
Total number of tax payments per year |
Time (in hours per year) |
Amount of taxes on profits paid by the business |
Tax Base |
|
Value added tax (VAT) |
13 |
300 |
10% |
value added |
|
Social security/housing fund contributions |
12 |
400 |
15% |
gross salaries |
|
Corporate income tax |
5 |
350 |
28% |
taxable income |
|
Land tax (use) |
1 |
|
28% on the gains and progressive tax rates as surtax on the remaining gain |
capital gains from property sale |
|
Business tax *Business license |
1 |
|
fixed fee (VND 1,000,000) |
|
|
|
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