Where should you establish an overseas business, or relocate to manage your assets? Corporate tax rates alone cannot answer these questions. Different taxes apply when a company earns profits, when its owner receives those profits, and when assets are sold or passed on.

Our earlier comparison covered the regions listed in the historical materials of the accounting network OneAsia plus Sri Lanka: 21 countries and regions in total. We checked the 2014 brochure against the original comparison and retained that scope for this update.

The reference date is October 12, 2026. Japan is included as a benchmark; Hong Kong, Taiwan and Hawaii are treated as comparison jurisdictions. For Hawaii, US federal and state taxes are distinguished. This article reviews current rules and conditions using public sources, rather than simply carrying forward the figures in the historical table.

1. Headline rates across 21 countries and regions

Corporate rates refer principally to ordinary resident companies; personal rates principally to ordinary income such as employment income of residents. Income and consumption taxes have different bases and must not be added together to calculate a total burden. Select a country or region name to jump to its sources.

Country/Region	Corporate income tax	Personal income tax	VAT and similar taxes
Japan	Corporate income tax23.2% national rate, plus local and other taxes. Defense special corporate tax applies to fiscal years beginning from April 2026. SME relief exists.	Personal income taxTop national rate 45%; reconstruction surtax and local residence tax are additional.	VAT and similar taxesStandard 10%; reduced 8%
South Korea	Corporate income taxFrom 2026, progressive national rates of 10%, 20%, 22% and 25%; local income tax is additional.	Personal income taxTop national rate 45%, plus local income tax.	VAT and similar taxes10%
China	Corporate income taxStandard 25%; incentive regimes are separate.	Personal income taxComprehensive income up to 45%; business income up to 35%.	VAT and similar taxes13%, 9% or 6% by transaction category
Taiwan	Corporate income taxStandard 20%; undistributed earnings tax and alternative minimum tax require separate consideration.	Personal income taxUp to 40%	VAT and similar taxes5%
Philippines	Corporate income taxGenerally 25%; 20% for small corporations meeting income and asset tests. Registered-business incentives are separate.	Personal income taxUp to 35%	VAT and similar taxes12%
Hong Kong	Corporate income tax16.5% for corporations; qualifying first HKD2 million of profits at 8.25%.	Personal income taxSalaries tax progressive rate up to 17%; the lower of progressive tax and standard-rate tax at 15%/16% applies.	VAT and similar taxesNo general VAT/sales tax
Mongolia	Corporate income tax10% on income up to MNT6 billion; 25% on the excess. Small-business relief exists.	Personal income taxEmployment income etc. 10–20%	VAT and similar taxes10%
Vietnam	Corporate income tax20%; 15%/17% for eligible small businesses	Personal income taxUp to 35%	VAT and similar taxesStandard 10%; eligible supplies 8% through end-2026
Thailand	Corporate income tax20%	Personal income taxUp to 35%	VAT and similar taxesEffective VAT 7%; reduced from statutory 10%
Malaysia	Corporate income tax24%; relief for eligible SMEs	Personal income taxUp to 30%	VAT and similar taxesSST: sales generally 5%/10%; services generally 8%, some 6%
Singapore	Corporate income tax17%	Personal income taxUp to 24%	VAT and similar taxesGST 9%
Cambodia	Corporate income tax20%	Personal income taxSalary tax up to 20%	VAT and similar taxesVAT 10%
Laos	Corporate income tax20%	Personal income taxSalary tax up to 25%	VAT and similar taxesVAT 10%
Bangladesh	Corporate income taxGenerally 27.5%, reduced to 25% where bank-transfer and other conditions are met; different rates for listed companies, finance and other sectors.	Personal income taxTop 30%, excluding surcharges	VAT and similar taxesStandard VAT 15%
Myanmar	Corporate income tax22%; Yangon-listed companies 17%; oil and gas 25%	Personal income taxTop 25%	VAT and similar taxesCommercial tax generally 5%, not VAT
Indonesia	Corporate income tax22%	Personal income taxUp to 35%	VAT and similar taxesStatutory 12%; ordinary supplies generally effectively 11%
India	Corporate income taxGenerally 25%/30%; optional 22% regime, before surcharge and cess	Personal income taxTop 30% plus surcharge and cess	VAT and similar taxesGST mainly 5%/18%; selected supplies 40% and other exceptions
Sri Lanka	Corporate income taxStandard 30%; certain foreign income 15%	Personal income taxTop 36%	VAT and similar taxesVAT 18%
UAE	Corporate income tax0% up to AED375,000 taxable income; 9% above; special regimes apply	Personal income taxNo general personal income tax; individual businesses may face corporate tax	VAT and similar taxesVAT 5%
Australia	Corporate income tax30%; qualifying base-rate entities 25%	Personal income taxTop 45% plus generally 2% Medicare levy	VAT and similar taxesGST 10%
Hawaii (United States)	Corporate income taxFederal 21% plus state 4.4–6.4%; not a simple combined rate	Personal income taxFederal top 37% plus state top 11%; not a simple combined rate	VAT and similar taxesState GET generally 4% plus county surcharge; not VAT

For example, Japan’s 23.2% corporation tax is only one national tax, not an effective rate including local taxes. US federal and Hawaii state rates likewise cannot simply be added to obtain an effective burden. Large multinational groups also need to consider global minimum-tax rules separately.

2. Individuals: foreign income and investment taxation

This table concerns individuals. A jurisdiction may tax a company’s gains while exempting private investment gains of individuals. Nationality, residence duration, whether trading is a business, and whether shares are listed can change the outcome.

Country/Region	Foreign income and residence	Dividends, interest and asset sales
Japan	Foreign income and residenceGenerally worldwide income; non-permanent residents have separate foreign-source income and remittance rules.	Dividends, interest and asset salesShare gains are generally taxed at 20.315%. Listed-share dividends depend on the filing method and differ from unlisted dividends. Interest varies by instrument; property gains by holding period and other factors. Additional tax may apply to very high incomes.
South Korea	Foreign income and residenceResidents generally face worldwide taxation. For foreign nationals resident for no more than five of the preceding ten years, foreign-source income is taxable only if paid in or remitted to Korea.	Dividends, interest and asset salesInterest and dividends require withholding/aggregation analysis. Share gains vary by listing and substantial-shareholder status. Property gains depend on holding period and number of homes, among other factors; gains are not universally exempt.
China	Foreign income and residenceResidents must consider foreign income; foreign-national exceptions depend on domicile, residence history and other conditions.	Dividends, interest and asset salesInterest, dividends and property-transfer income generally carry a statutory 20% rate. Listed shares, deposits and other categories may have exemptions or relief. Both share and property transactions require asset-specific analysis.
Taiwan	Foreign income and residenceForeign income may be included in individual AMT; territorial ordinary income taxation does not mean blanket exemption.	Dividends, interest and asset salesDividends allow aggregation or a separate 28% rate. Ordinary income tax and alternative minimum tax differ for share gains; gains on unlisted shares may enter basic income. Interest and property gains require category-specific review.
Philippines	Foreign income and residenceResident aliens are generally taxed on Philippine-source income, unlike resident citizens subject to worldwide taxation.	Dividends, interest and asset salesDomestic-company dividends generally 10%, domestic deposit interest etc. generally 20%; net gains on shares sold off-exchange 15%. Exchange transactions may face stock transaction tax; real estate has separate rules. Citizenship affects foreign-income taxation.
Hong Kong	Foreign income and residenceGenerally Hong Kong-source taxation. Corporate foreign-source income exemption rules should not be confused with personal investment rules.	Dividends, interest and asset salesPersonal capital gains are generally outside profits tax, but share or property trading as a business may be taxable. Dividends and personal interest have no general withholding tax. Stamp duty on shares and real estate is separate.
Mongolia	Foreign income and residenceResidents are taxed on foreign income, with foreign tax credits subject to limits and documentation. Nonresidents are taxed on Mongolian-source income.	Dividends, interest and asset salesResident individuals: dividends/interest generally 10%, or 5% for qualifying publicly traded securities; share gains generally 10% after acquisition costs. Real-estate sales face 2% on gross proceeds, not net gains.
Vietnam	Foreign income and residenceTax scope differs by residency; detailed foreign-income treatment requires further verification.	Dividends, interest and asset salesDividends and ordinary investment income face 5%; bank deposit interest is exempt. Securities sales face 0.1% of proceeds; capital interests 20% of gains, or 2% of proceeds where costs cannot be determined. Property sales generally face 2% of proceeds.
Thailand	Foreign income and residenceForeign income earned as a resident from 2024 may be taxed when remitted. Remitting in a later year does not by itself exempt it.	Dividends, interest and asset salesIndividuals’ gains on SET transactions are exempt, not all unlisted or overseas shares. Domestic dividends may elect final 10% tax. Interest generally has 15% withholding. Property transfers need separate income and transaction tax analysis.
Malaysia	Foreign income and residenceExemptions may cover foreign income received locally; check income type, conditions and applicable period.	Dividends, interest and asset salesDistinguish capital investment from trading. From YA 2025, taxable individual dividends above MYR100,000 annually attract 2%. Property gains face RPGT; foreign non-permanent residents generally face 30% or 10% depending on holding period. Interest needs instrument-specific review.
Singapore	Foreign income and residenceIndividuals’ foreign income is generally exempt; income through a Singapore partnership is treated differently.	Dividends, interest and asset salesPersonal investment gains on shares and property are generally untaxed; trading income is different. One-tier domestic dividends and approved-bank deposit interest are generally exempt. Property stamp duties must be checked separately.
Cambodia	Foreign income and residenceIndividuals’ foreign income requires analysis by category, including employment and investments.	Dividends, interest and asset salesImplementation of 20% capital-gains tax differs by asset class; distinguish investment assets from real estate. Bank interest withholding is 6% on fixed-term and 4% on non-fixed deposits. Domestic individual dividend treatment requires further verification.
Laos	Foreign income and residenceForeign nationals working in Laos can be taxed on salary paid locally or abroad; other foreign-income scope requires individual review.	Dividends, interest and asset salesDividends generally face 10%, but Lao exchange share gains and dividends are exempt. Other share-sale receipts face 2%; ordinary loan interest 10%. Bank deposit interest is exempt. Land-use-right transfers have category-specific taxes.
Bangladesh	Foreign income and residenceResidents generally taxed on worldwide income. An exemption for foreign income earned and lawfully remitted by Bangladeshi citizens is not a general exemption for Japanese nationals.	Dividends, interest and asset salesPost-2026 rates and exemptions for individual dividends, interest, share gains and property gains remain unverified; corporate or withholding rates must not be treated as final individual rates.
Myanmar	Foreign income and residenceResidents generally taxed on worldwide income; non-resident foreigners on Myanmar income. Special rules apply to certain foreign investors and non-resident citizens.	Dividends, interest and asset salesGeneral capital gains rate 10%, with special oil/gas rules. Individual share/property scope and thresholds, domestic dividend and bank-interest exemptions need further verification.
Indonesia	Foreign income and residenceResidents’ foreign income must be considered, with special rules for certain foreign nationals and qualifying reinvestment.	Dividends, interest and asset salesDomestic exchange sales face 0.1% of proceeds even at a loss. Resident individuals’ domestic dividends face 10%, with exemption for qualifying domestic reinvestment. Unlisted shares, interest and property require separate rules.
India	Foreign income and residenceOrdinarily resident individuals generally taxed on worldwide income; non-ordinarily resident scope differs	Dividends, interest and asset salesDividends/interest generally taxable. Qualifying STT-paid listed-share gains: short-term 20%, long-term 12.5% with thresholds. Other long-term gains generally 12.5%; older land/buildings have transitional protection. Surcharge/cess additional.
Sri Lanka	Foreign income and residenceQualifying foreign income remitted in foreign currency through a bank capped at 15%	Dividends, interest and asset salesIndividual investment-asset gains 15% from 3 June 2026; older official pages still show 10%. CSE-listed shares and qualifying principal homes excluded. Dividend withholding 15%; interest advance withholding 10%, not necessarily final tax.
UAE	Foreign income and residenceDistinguish private investments from business income; foreign-income classification requires case-specific review	Dividends, interest and asset salesWages, personal investment income and personal real-estate investment income are excluded from natural-person corporate tax. Distinguish private dividends, interest and share/property gains from business activity; individual ownership alone is not sufficient.
Australia	Foreign income and residenceResidents generally taxed on worldwide income; temporary residents have exemptions for much foreign income	Dividends, interest and asset salesDividends, interest and net capital gains generally enter individual taxable income. Dividends may carry franking credits. Individuals generally receive a 50% gains discount after 12 months; principal-residence exemptions and other conditions apply.
Hawaii (United States)	Foreign income and residenceUS citizens/federal tax residents generally taxed on worldwide income; state residence and tax require separate assessment	Dividends, interest and asset salesFederal interest/short-term gains use ordinary rates; qualified dividends and most long-term gains 0/15/20%, plus 3.8% NIIT where applicable. State tax is separate, with a maximum 7.25% alternative computation for net long-term capital gains. Home-sale exceptions matter.

Statements such as “taxed when remitted” or “foreign income is exempt” can mislead if the source, timing and recipient are omitted. A transaction tax on gross share-sale proceeds is different from income tax on a gain; the former can apply even to a loss-making sale.

3. Asset transfers can be taxed even without inheritance or gift tax

Country/Region	Inheritance, gifts and related taxes
Japan	Inheritance, gifts and related taxesInheritance and gift taxes apply. Emigration does not necessarily end Japanese liability immediately.
South Korea	Inheritance, gifts and related taxesInheritance and gift taxes apply.
China	Inheritance, gifts and related taxesNo separate estate or gift tax was identified; other taxes can arise on asset transfers.
Taiwan	Inheritance, gifts and related taxesEstate and gift taxes apply at progressive rates of 10%, 15% and 20%.
Philippines	Inheritance, gifts and related taxesEstate and donor’s taxes are both 6%, with different exemptions and asset-scope rules.
Hong Kong	Inheritance, gifts and related taxesEstate duty abolished in 2006; no separate gift tax. Stamp duty and other charges are separate.
Mongolia	Inheritance, gifts and related taxesTax authority materials state no inheritance/gift tax law has been enacted; current transaction-specific treatment requires verification.
Vietnam	Inheritance, gifts and related taxesCovered inheritances and gifts are subject to income tax: 10% above VND20 million per receipt under the 2026 law.
Thailand	Inheritance, gifts and related taxesInheritance tax and taxation of gifts apply. Inheritance generally applies above THB100 million per deceased person.
Malaysia	Inheritance, gifts and related taxesOfficial records confirm repeal of estate duty; current non-reintroduction requires further verification. Gifts may involve RPGT or stamp duty.
Singapore	Inheritance, gifts and related taxesEstate duty abolished in 2008. Check stamp duties and other transfer taxes on gifts.
Cambodia	Inheritance, gifts and related taxesComprehensive inheritance/gift tax status is not conclusively verified here. Check property transfer stamp duty and family exemptions separately.
Laos	Inheritance, gifts and related taxesInheritance/gifts can be income-taxed: inheritance within second-degree kin exempt, more distant inheritance 2%, cash/gifts generally 5%, with exceptions.
Bangladesh	Inheritance, gifts and related taxesGift Tax Act exists; inheritance-tax status not verified
Myanmar	Inheritance, gifts and related taxesInheritance/gift-tax status not verified in primary sources
Indonesia	Inheritance, gifts and related taxesInheritance receipts are outside income tax, but land/building acquisition taxes may apply. Gift exemptions depend on recipient and conditions.
India	Inheritance, gifts and related taxesInheritance receipts exempt; gifts may attract income tax, subject to family and other exemptions
Sri Lanka	Inheritance, gifts and related taxesEstate duty/gift tax abolished in 1985; other asset-transfer taxes require separate review
UAE	Inheritance, gifts and related taxesNo inheritance tax, confirmed by Dubai government guidance. Property registration/transfer fees may still arise on gifts and inheritances.
Australia	Inheritance, gifts and related taxesGenerally no tax on inheritance/gift receipts themselves; CGT may arise on disposal or transfer
Hawaii (United States)	Inheritance, gifts and related taxesFederal estate/gift tax and state estate tax apply; no state gift or inheritance tax

Estate taxes on an estate as a whole differ from inheritance taxes on recipients. Income tax on gifts and transfer or stamp taxes on property must not be overlooked simply because there is no separate inheritance or gift tax. An item marked unconfirmed does not mean tax-free.

The reach of Japanese inheritance and gift taxes also depends on the parties’ domicile, nationality and residence history, as well as the location of the assets. See our history of Japan’s cross-border inheritance and gift tax rules Please see

4. Withholding tax when profits and other payments leave a country

This table generally concerns dividends, interest and royalties received by a foreign company without a local permanent establishment (PE), under domestic law before treaty relief. The recipient therefore differs from the individual investor in the preceding table. Withholding on a gross payment is not always the final tax liability.

Country/Region	Dividends / interest / royalties: before treaty relief
Japan	Dividends / interest / royalties: before treaty reliefDividends: generally 20.42%, or 15.315% for qualifying listed securities. Interest: loans 20.42%; deposits/bonds etc. 15.315%. Royalties 20.42%.
South Korea	Dividends / interest / royalties: before treaty reliefDividends/royalties generally 22% including local tax. Interest generally 22%; certain bonds 15.4%. Treaty relief is separate.
China	Dividends / interest / royalties: before treaty reliefDividends, interest and royalties paid to foreign corporations generally 10%; VAT and other charges require separate consideration.
Taiwan	Dividends / interest / royalties: before treaty reliefDividends 21%; interest 20% (certain bonds etc. 15%); royalties 20%. Relief under the Japan–Taiwan private arrangement is separate.
Philippines	Dividends / interest / royalties: before treaty reliefGenerally 25% on Philippine-source income of nonresident foreign corporations. Dividend tax-sparing, loan-interest exceptions and treaty relief require separate review.
Hong Kong	Dividends / interest / royalties: before treaty reliefGenerally no dividend or interest withholding. Corporate royalties commonly bear an effective 4.95%, with related-party and two-tier-rate exceptions.
Mongolia	Dividends / interest / royalties: before treaty reliefForeign payments generally 20%; special rules for bonds and other instruments require separate review.
Vietnam	Dividends / interest / royalties: before treaty reliefFinal primary-source verification of outbound corporate dividend, interest and royalty rates remains outstanding.
Thailand	Dividends / interest / royalties: before treaty reliefDividends 10% / interest 15% / royalties 15%, before treaty relief and exceptions.
Malaysia	Dividends / interest / royalties: before treaty reliefTo foreign companies: dividends 0% / interest 15% / royalties 10%, subject to exceptions.
Singapore	Dividends / interest / royalties: before treaty reliefDividends 0% / interest 15% / royalties 10%, subject to conditions, exemptions and treaties.
Cambodia	Dividends / interest / royalties: before treaty reliefDividends 14% / interest 14% / royalties 14%, subject to exceptions.
Laos	Dividends / interest / royalties: before treaty reliefDividends 10% / loan interest 10% / royalties 5%, based on official guidance; check conditions.
Bangladesh	Dividends / interest / royalties: before treaty reliefForeign company without PE: dividends 20% / interest 20% / royalties 20%, verified in the 2025 source-tax rules; exemptions and treaty relief may apply. Japan treaty exists.
Myanmar	Dividends / interest / royalties: before treaty reliefForeign company without PE: after-tax dividends exempt / interest 15% / royalties 15%. No income-tax treaty with Japan.
Indonesia	Dividends / interest / royalties: before treaty reliefDividends 20% / interest 20% / royalties 20%, subject to treaty relief and exceptions.
India	Dividends / interest / royalties: before treaty reliefForeign company without PE: dividends generally 20%, foreign-currency debt interest generally 20%, royalties generally 20%, plus surcharge/cess. IFSC dividends 10% and special interest rates including 5% exist. Japan treaty applies.
Sri Lanka	Dividends / interest / royalties: before treaty reliefForeign company without PE: dividends 15%, interest 10%, royalties 14%, before treaty relief. Japan treaty exists
UAE	Dividends / interest / royalties: before treaty reliefForeign company without PE: current withholding rate 0% on dividends, interest, royalties, etc. Japan treaty exists
Australia	Dividends / interest / royalties: before treaty reliefForeign company without PE: unfranked dividends 30% (franked portion 0%), interest 10%, royalties 30%, before treaty relief. Japan treaty exists
Hawaii (United States)	Dividends / interest / royalties: before treaty reliefForeign company without PE: generally federal 30% on US-source dividends, interest and royalties, with interest exemptions and treaty relief; state tax separate

Treaty exemptions and reductions may depend on beneficial ownership, shareholding percentages and periods, residence certification, procedural requirements and anti-abuse rules. Domestic rates and treaty limits must be checked separately.

5. Income tax treaties and arrangements with Japan

Country/Region	Income tax treaty / arrangement with Japan
Japan	Income tax treaty / arrangement with JapanDomestic benchmark
South Korea	Income tax treaty / arrangement with JapanIncome tax treaty in force
China	Income tax treaty / arrangement with JapanIncome tax treaty in force
Taiwan	Income tax treaty / arrangement with JapanPrivate-sector tax arrangement implemented through domestic law
Philippines	Income tax treaty / arrangement with JapanIncome tax treaty in force
Hong Kong	Income tax treaty / arrangement with JapanIncome tax treaty in force
Mongolia	Income tax treaty / arrangement with JapanNo bilateral income tax treaty
Vietnam	Income tax treaty / arrangement with JapanIncome tax treaty in force
Thailand	Income tax treaty / arrangement with JapanIncome tax treaty in force
Malaysia	Income tax treaty / arrangement with JapanIncome tax treaty in force
Singapore	Income tax treaty / arrangement with JapanIncome tax treaty in force
Cambodia	Income tax treaty / arrangement with JapanNo bilateral income tax treaty
Laos	Income tax treaty / arrangement with JapanNo bilateral income tax treaty
Bangladesh	Income tax treaty / arrangement with JapanIncome tax treaty in force
Myanmar	Income tax treaty / arrangement with JapanNo bilateral income tax treaty
Indonesia	Income tax treaty / arrangement with JapanIncome tax treaty in force
India	Income tax treaty / arrangement with JapanIncome tax treaty in force
Sri Lanka	Income tax treaty / arrangement with JapanIncome tax treaty in force
UAE	Income tax treaty / arrangement with JapanIncome tax treaty in force
Australia	Income tax treaty / arrangement with JapanIncome tax treaty in force
Hawaii (United States)	Income tax treaty / arrangement with JapanUS–Japan treaty; state-tax treatment requires separate analysis

Source: Ministry of Finance: Japan’s tax treaty network, October 1, 2026 . Mongolia’s participation in the Convention on Mutual Administrative Assistance in Tax Matters is not a bilateral income tax treaty reducing dividend or similar withholding. A signed replacement treaty does not displace an existing treaty before the relevant entry-into-force and application dates.

For the treaty framework, see the world tax treaty database . Actual entitlement must be determined from the treaty text and domestic law.

6. What matters depends on your purpose

For a growing local business, examine corporate tax and profits available for reinvestment. For living on dividends, also examine withholding and personal taxation. For a company sale, capital-gains rules, treaties and Japanese tax exposure are central. For succession, consider inheritance, gifts and taxes triggered by asset transfers together.

Our existing article, Comparing company profits and the owner’s take-home income , explains the comparison method. For Japan, also consider Controlled Foreign Company (CFC) rules and foreign tax credit .

Compare a coherent plan covering where the business operates, family life, how profits are received, and eventual sale or succession, rather than choosing a destination by its headline rate alone. Use these 21-jurisdiction tables as the starting map.

Sources by country and region

Rules reference date: October 12, 2026. This is a general comparison, not a determination of tax liability or entitlement to exemption in any particular case. Unconfirmed items are identified. Treatment depends on tax residence, source of income, asset type, transaction date, tax year and applicable treaties.