WorldTax CompareAll Comparisons

Saudi Arabia vs Malaysia
Tax Rate Comparison

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

🇸🇦 Saudi Arabia
vs
🇲🇾 Malaysia
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% / 20%
No personal income tax; competitive positioning maintained
No change
0–30%
30% top rate; Pillar Two compliance measures
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% VAT stable; GCC harmonization efforts
No change
10%
Service tax 8% maintained; GST return unlikely
No change

Corporate Tax Rate

Corporate Tax Rate
20%
20% CIT; special economic zone (NEOM etc.) benefits
No change
24%
24% stable; potential reduction discussed for competitiveness
No change

Capital Gains Tax

Capital Gains Tax
20%
20% via CIT framework
No change
10–30%
CGT on unlisted shares fully embedded in system
No change

Social Security & Payroll

Social Security / Payroll
~22.5%
GOSI contribution rates stable; expat levy increasing
No change
~23%
EPF reviewing contribution rates and fund adequacy
No change
State, Regional & Local Taxes

🇸🇦 Saudi ArabiaZakat, Salam & Municipality Fees

Saudi Arabia has no local or regional income taxes on individuals — the Kingdom operates as a unitary state for tax purposes. Municipalities (amanaat) collect fees for commercial licences, land use, and services. Zakat (Islamic wealth levy at 2.5% of Zakat base) applies to Saudi nationals and GCC citizens with business income, instead of income tax. Foreign companies pay CIT at 20%. The government levies municipality fees of 2.5% on commercial and residential rents. Vision 2030 is transforming the fiscal landscape.

🇲🇾 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.

⚠️ 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.

Saudi Arabia vs Malaysia: Key Tax Differences (2026)

💰 Income Tax: 🇲🇾 Malaysia has a higher top income tax rate (0% / 20% vs 0–30%). 🇸🇦 Saudi Arabia is more favourable for high earners.

🛒 VAT/Sales Tax: Saudi Arabia has a higher consumption tax (15% vs 10%).

🏢 Corporate Tax: 🇸🇦 Saudi Arabia offers a lower corporate rate (20% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇸🇦 Saudi Arabia taxes investment gains at a lower rate (20% vs 30%), benefiting investors.

Related Comparisons

🇸🇦 Saudi Arabia vs 🇧🇭 BahrainTax comparison🇸🇦 Saudi Arabia vs 🇩🇪 GermanyTax comparison🇸🇦 Saudi Arabia vs 🇰🇼 KuwaitTax comparison🇸🇦 Saudi Arabia vs 🇴🇲 OmanTax comparison🇸🇦 Saudi Arabia vs 🇶🇦 QatarTax comparison🇸🇦 Saudi Arabia vs 🇦🇪 United Arab EmiratesTax comparison🇸🇦 Saudi Arabia vs 🇬🇧 United KingdomTax comparison🇸🇦 Saudi Arabia vs 🇺🇸 United StatesTax comparison🇸🇦 Saudi Arabia vs 🇨🇳 ChinaTax comparison🇸🇦 Saudi Arabia vs 🇫🇷 FranceTax comparison🇸🇦 Saudi Arabia vs 🇮🇳 IndiaTax comparison🇸🇦 Saudi Arabia vs 🇯🇵 JapanTax comparison
All 🇸🇦 Saudi Arabia comparisons →All 🇲🇾 Malaysia comparisons →