🇹🇭Thailand vs Malaysia🇲🇾
Checked November 4, 2026 · How we score
| Metric | Thailand | Malaysia |
|---|---|---|
| Corporate tax | 20% | 24% |
| Top personal tax | 35% | 30% |
| Capital gains tax | 0% | 0% |
| VAT | 7% | 6% |
| Usual entity | Private limited company (Co., Ltd.) | Sdn Bhd (private limited company) |
| Setup cost | $2,500–$7,000 | $1,500–$4,000 |
| Yearly cost | $3,000–$8,000 | $2,000–$5,000 |
| Time to form | 21 days | 7 days |
| Remote setup | No | No |
| Banking difficulty | 4/5 | 3/5 |
| Digital nomad visa | Yes | Yes |
| Our score | 5.2/10 | 5.9/10 |
Choose Thailand if…
- →Remote workers who plan to hold foreign income offshore
- →Businesses selling inside Thailand through BOI or Amity Treaty structures
- →Long-stay retirees using the LTR visa
Choose Malaysia if…
- →Remote workers wanting a low-cost Asian base with DE Rantau
- →Tech and services companies serving Southeast Asia
- →Offshore structures using Labuan
Questions people ask
Is Thailand or Malaysia better for a new company?
Thailand has the lower overall tax burden (20% corporate, 35% top personal). Malaysia is also easier and cheaper to set up and run. Overall, Malaysia scores 5.9/10 on our index vs 5.2/10.
Does Thailand tax foreign income?
Since 1 January 2024, foreign income earned by a Thai tax resident (180+ days) is taxable in Thailand when it is remitted into the country, even if it was earned in an earlier year. Income kept offshore is not taxed until it is brought in. LTR visa holders in certain categories are exempt.
What is the corporate tax rate in Thailand?
The standard rate is 20%. Qualifying SMEs pay 0% on the first THB 300,000 of profit, 15% on the next THB 2.7m and 20% above, and BOI-promoted companies can receive tax holidays.
Does Malaysia tax foreign income?
Foreign-sourced income received by resident individuals is currently exempt (until 31 December 2036), with some exclusions such as partnership income. Companies' foreign income is taxable from 2022 with conditional exemptions for dividends, so check the latest LHDN rules.
What is the corporate tax rate in Malaysia?
The standard rate is 24%. Qualifying SMEs pay 15% on the first RM150,000 of profit, 17% on the next RM450,000 and 24% above that.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.