vs
Panama vs Malaysia Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%Lower
Malaysia30%
Corporate Tax
Panama25%
Malaysia24%Lower
Capital Gains
Panama10%
Malaysia10%
VAT / Sales Tax
Panama7%Lower
Malaysia8%
| Category | Panama | Malaysia |
|---|---|---|
| Tax System | Territorial | Progressive |
| Top Income Tax | 25% | 30% |
| Corporate Tax | 25% | 24% |
| Capital Gains | 10% | 10% |
| VAT / Sales Tax | 7% | 8% |
| Crypto Tax | No | No |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 75 |
| Currency | PAB | MYR |
The bottom line: Panama vs Malaysia
Panama has the lower headline rate on 2 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Panama runs a territorial tax system, while Malaysia uses a progressive one. Malaysia has the wider tax-treaty network (75 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (25% vs 30%)
- Corporate tax: Malaysia is lower (25% vs 24%)
- Capital gains tax: identical in both (10%)
- VAT / sales tax: Panama is lower (7% vs 8%)