WorldTax Compareโ† All Comparisons

Malaysia vs United Kingdom
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‡ฌ๐Ÿ‡ง United Kingdom
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€“45%
Thresholds remain frozen; fiscal drag continuing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
Service tax 8% maintained; GST return unlikely
No change
0โ€“20%
Standard 20% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
24%
24% stable; potential reduction discussed for competitiveness
No change
19โ€“25%
25% main rate; possible future reform discussions
No change
Capital Gains Tax
Capital Gains Tax
10โ€“30%
CGT on unlisted shares fully embedded in system
No change
18โ€“24%
Post-Oct 2024 rates in full effect
No change
Social Security & Payroll
Social Security / Payroll
~23%
EPF reviewing contribution rates and fund adequacy
No change
~28.3%
15% employer NI; lower secondary threshold remains
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‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

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 United Kingdom: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (0โ€“30% vs 0โ€“45%). ๐Ÿ‡ฒ๐Ÿ‡พ Malaysia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (10% vs 0โ€“20%).

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‡ฌ๐Ÿ‡ง United Kingdom taxes investment gains at a lower rate (24% vs 30%), benefiting investors.

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