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Malaysia vs Bahrain
Tax Rate Comparison

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

🇲🇾 Malaysia
vs
🇧🇭 Bahrain
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top rate; Pillar Two compliance measures
No change
0%
No personal income tax
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
Service tax 8% maintained; GST return unlikely
No change
10%
10% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
24%
24% stable; potential reduction discussed for competitiveness
No change
0%
0% standard; MNC Pillar Two compliance maturing
No change

Capital Gains Tax

Capital Gains Tax
10–30%
CGT on unlisted shares fully embedded in system
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~23%
EPF reviewing contribution rates and fund adequacy
No change
~19%
SIO contributions stable
No change
State, Regional & Local Taxes

🇲🇾 MalaysiaState & 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%–12% of estimated annual rental value. No state income taxes exist — this is federal.

🇧🇭 BahrainMunicipal Fees & Levies

Bahrain has no income tax on individuals and no corporate income tax for most businesses outside the oil sector. Municipalities collect fees for commercial registrations and services. Bahrain introduced VAT at 5% in 2019, raised to 10% in 2022. Social insurance is administered by the Social Insurance Organization (SIO). Bahrain's Economic Vision 2030 aims to diversify from oil. The country is a regional financial hub and attracts holding companies due to its zero-tax environment for most activities.

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

Malaysia vs Bahrain: Key Tax Differences (2026)

💰 Income Tax: 🇲🇾 Malaysia has a higher top income tax rate (0–30% vs 0%). 🇧🇭 Bahrain is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).

🏢 Corporate Tax: 🇧🇭 Bahrain offers a lower corporate rate (0% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇧🇭 Bahrain taxes investment gains at a lower rate (0% vs 30%), benefiting investors.

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