Southeast Asia Tax Guide: Thailand, Malaysia, Vietnam Compared

Southeast Asia has become the world's top destination for digital nomads and remote workers, thanks to ultra-low living costs, warm climate, rich culture, and increasingly welcoming visa policies. But the tax implications of living in the region vary significantly between countries. From Malaysia's territorial system (foreign income exempt) to Thailand's changing rules on foreign income remittance, each country offers different trade-offs.

A side-by-side comparison of key tax metrics across Southeast Asian countries.

Thailand's Long-Term Resident (LTR) visa, launched in 2022, was a game-changer. It offers a 17% flat tax on employment income, 10-year visa, and exemption from foreign income tax for qualifying 'wealthy pensioners,' 'wealthy global citizens,' and 'remote workers from target industries.' For remote workers, the requirement is $80,000+/year salary (or $40,000+ with master's degree). The LTR visa makes Thailand one of Asia's most attractive options for high-earning nomads. Note: Thailand changed its rules on foreign income remittance in 2024, so non-LTR residents may face new tax obligations.

Malaysia's territorial tax system means foreign-sourced income is generally exempt from tax for residents. This makes it excellent for remote workers earning from foreign clients. The DE Rantau digital nomad pass (min $24,000/year) provides legal residency. Kuala Lumpur offers excellent infrastructure at very low cost. Penang and Langkawi are popular alternatives. However, Malaysia has been reviewing its territorial system, and changes may come in future years. The MM2H program has become more restrictive and expensive.

1. Banking: Singapore or Hong Kong banks are easiest for international accounts. Local banks often have restrictions for foreigners.
2. Healthcare: Thailand and Malaysia have excellent private healthcare at low cost. Get international health insurance.
3. Coworking: All major cities have quality coworking spaces ($50-200/month).
4. Internet: Thailand and Malaysia have good internet. Vietnam and Indonesia can be spotty outside major cities.
5. Visa runs: Many nomads do 'visa runs' (leave and re-enter) to extend tourist visa stays. This is legally gray and becoming harder.
6. Tax filing: Hire a local accountant if you become tax resident. Costs are very low ($200-500/year).