Personal Income Tax in ASEAN: a Guide to 2017 Rates

Posted by Reading Time: 4 minutes

By: Dezan Shira & Associates 
Editor: Maxfield Brown

Personal income tax, or PIT as it is commonly reffered, is a tax levied on all wage earners within a given jurisdiction. With the exception of Brunei and Cambodia, the former having no PIT in place and the latter a fixed 20 percent rate, ASEAN members all employ a progressive taxation system wherein an individual is taxed according to how much they earn. This results in individuals with a higher salary being taxed at a greater rate than those with a lower one. Rates vary wildly across the regional bloc, with some countries capping their maximum PIT at as much as 45 percent and others at as little as 17 percent.

Professional Service_CB icons_2015 RELATED: International Tax Planning Services from Dezan Shira & Associates

Trends in personal income taxation

Although its fluctuations have not been as pronounced as those of CIT (corporate income tax), the individual income tax rates of ASEAN have for the most part also been experiencing a downward turn in recent years. Vietnam, Malaysia, and Indonesia, for instance, have all marginally lowered their PIT rates since the turn of the century. To make up for this revenue, however, many countries have increased taxation in upper tax brackets.

For many of ASEAN’s economies experiencing rapid growth, there has been a drive to create new tax brackets to accommodate rising incomes. Myanmar, most recently, created an income band for top earners which currently levies a 30 percent tax.

ASEAN’s PIT rates compared

Below, we outline PIT tax brackets in individual member states. To help readers understand how these rates fit into the context of these countries’ wage structures, we have also included the average salary of different ASEAN states.

Personal Income Tax Brackets Vietnam Singapore Malaysia Myanmar Thailand Philippines Indonesia Laos Cambodia

Related-Reading-Icon-Asean Link RELATED: Individual Income Tax in Malaysia for Expatriates

It is important to remember that these figures are based upon estimates and exchange rates at the time of writing, and therefore should not be used to make any meaningful PIT calculations. For a free consultation  on personal income tax across the region or in particular ASEAN states, please contact asean@dezshira.com 


About
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Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com.

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2 thoughts on “Personal Income Tax in ASEAN: a Guide to 2017 Rates

    Darrick Sampson 杜立仁 says:

    Is the currency USD, in the above chart?

    Dustin says:

    Hi Darrick,

    Yes the currency is in USD. Feel free to get in touch if you have further questions.

    Regards,
    Dustin Daugherty
    Senior Associate
    Dezan Shira & Associates

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