Asia: Table of Tax Comparison

Table of Tax Comparison:

Taxes and mandatory contributions that a medium-size company must pay

or withhold in a given year in Asia

Please note that government tax incentives that are offered by many countries throughout the region greatly affects the effective tax rate in the initial years. Please use this chart with the tax incentive information as many countries like Thailand and Vietnam give very generous tax incentives for target companies that can make your effective tax "zero" in the first 5-8 years.

	Corporate Income Tax Tax Rate - Based on Taxable Profit	Employer paid - Social security contributions - based on gross salary	Value added tax (VAT)
CAMBODIA	20% on profits or 1% on turnover (whichever is higher)	0.8%	10%
CHINA	25%	35%+7%	17%
HONG KONG	5%	16.5%
INDIA	30%	Social security contributions 13.61% Employee's state insurance contribution 4.75%	State VAT 12.5%
INDONESIA	12.5% - 25%	Employer paid - Health insurance contributions 6% Employer paid - Social security contributions 4.24%	10%
JAPAN	25.5%	Employer paid - Welfare pension insurance (paid jointly) 8.56% Employer paid - Health insurance 4.985% Employer paid - Workmen's accident compensation (paid jointly) 1.9% Employer paid - Employment insurance 0.85% Employer paid - Child allowance contribution (paid jointly) 0.15%	5%
S. KOREA	11% (up to KRW 200 million), 22% (KRW 200 million to 20 billion) and 24.2%(over KRW 20 billion)	Employer paid - National pension 4.5% Employer paid - Accident compensation insurance (paid jointly) 3.1% Employer paid - National health insurance (paid jointly) 3.1378975% Employer paid - Unemployment insurance (paid jointly) 0.85% Local income tax in proporation to employee salaries 0.5% Employer paid Long Term Care Insurance (paid jointly) 6.5	10%
LAOS	24%	5%	Business turnover tax on sales (VAT) 10%
MALAYSIA	25%	Variable (approximately 15%)	Sales tax 10%
MYANMAR	25%	2.5%
PHILIPPINES	30%	Employer paid - Social security contributions 2.89% to 6.50% Employer paid - Health insurance 1.16% to 1.19% Employer paid - Housing development fund 2% or P100 per worker Employer paid - Employer's compensation (paid jointly) P 30 per employee per month	12%
SINGAPORE	17%	16%	7%
THAILAND	20%	Employer paid - Social security contributions 4% Employer paid - Workmen compensation fund 0.2% to 1%	7%
VIETNAM	25% (2013), 22%(2014), expected to be 20% in 2016	Employer paid - Social Security contributions 17% Employer paid - Health insurance contributions (paid jointly) 2.5% Employer paid - Unemployment insurance (paid jointly) 1%	10%

Source: the World Bank Group’s Doing Business

Comparison Table: Runckel & Associates

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