The paper discusses the business taxes imposed by the ASEAN countries. Among the ten member-countries of the ASEAN, five countries are imposing the VAT. With the recent abolition of the highest 20% VAT rate for Vietnam, the Philippines now has the highest standard VAT rate of 12%. In the case of Indonesia, it has a regular VAT rate of 10%, but it could go to as low as 5% or to as high as 15% with just the issuance of a government regulation. Cambodia also imposes a standard rate of 10%, while Thailand imposes the lowest VAT rate at 7%.
Generally, these VAT-imposing ASEAN countries impose a 0% VAT rate on exports. With regard to VAT exemptions, Vietnam has the least number of exempt transactions. This is probably due to its multi-tiered VAT structure that covers more goods and services.
The rest of the ASEAN countries do not impose VAT but collect business taxes in the form of sales and business taxes; goods and services taxes (GST); turnover tax; and commercial tax. The rate ranges from as low as 5% to as high as 200%.
It is only Brunei Darussalam that has no VAT or VAT-like imposition.
