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South Korea vs Malaysia
Tax Rate Comparison

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

🇰🇷 South Korea
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
6–45%
Stable; political debate on top rate reduction
No change
0–30%
30% top rate; Pillar Two compliance measures
No change

VAT / GST / Sales Tax

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

Corporate Tax Rate

Corporate Tax Rate
9–24%
Competitiveness discussions vs global peers
No change
24%
24% stable; potential reduction discussed for competitiveness
No change

Capital Gains Tax

Capital Gains Tax
0–45%
Financial income taxation reform continuing
No change
10–30%
CGT on unlisted shares fully embedded in system
No change

Social Security & Payroll

Social Security / Payroll
~18.5%
Contribution rates stable; pension reform discussion
No change
~23%
EPF reviewing contribution rates and fund adequacy
No change
State, Regional & Local Taxes

🇰🇷 South KoreaLocal Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

🇲🇾 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.

South Korea vs Malaysia: Key Tax Differences (2026)

💰 Income Tax: 🇰🇷 South Korea has a higher top income tax rate (6–45% vs 0–30%). 🇲🇾 Malaysia is more favourable for high earners.

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

🏢 Corporate Tax: Corporate rates are similar in both countries (9–24% vs 24%).

📈 Capital Gains: 🇲🇾 Malaysia taxes investment gains at a lower rate (30% vs 45%), benefiting investors.

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