WorldTax Compareโ† All Comparisons

Brazil vs Indonesia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡ท Brazil
vs
๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“27.5%
Zero-rate up to R$5,000/mo fully effective
No change
5โ€“35%
Stable; resource wealth affecting fiscal planning
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
โ–ผ -0.5pp vs 2025
12%
12% maintained; digital economy compliance growing
No change
Corporate Tax Rate
Corporate Tax Rate
34%
34% maintained; reform discussions ongoing
No change
22%
Potential reduction to 20% under investment push
No change
Capital Gains Tax
Capital Gains Tax
15โ€“22.5%
Offshore income now fully captured
No change
~2.5%
No change expected
No change
Social Security & Payroll
Social Security / Payroll
~36%
Payroll simplification proposals ongoing
No change
~18โ€“23%
Universal health coverage expansion continuing
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ท Brazil โ€” State & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%โ€“18% varying by state. Municipalities levy ISS (services tax) at 2%โ€“5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia โ€” Provincial & Regional Taxes

Indonesia's 38 provinces and 514 regencies/cities levy their own taxes. Provinces charge vehicle tax (Pajak Kendaraan Bermotor) at 1%โ€“2%, vehicle transfer tax, and fuel tax (Pajak Bahan Bakar Kendaraan). Regencies/cities levy hotel tax (10%), restaurant tax (10%), entertainment tax (0%โ€“75%), and land/building tax (Pajak Bumi dan Bangunan - P2). The 2022 tax reform (Harmonisasi Peraturan Perpajakan) unified many tax procedures. E-commerce platforms must now collect VAT.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Brazil vs Indonesia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia has a higher top income tax rate (0โ€“27.5% vs 5โ€“35%). ๐Ÿ‡ง๐Ÿ‡ท Brazil is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Brazil has a higher consumption tax (~27.5% combined vs 12%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia offers a lower corporate rate (22% vs 34%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia taxes investment gains at a lower rate (2.5% vs 22.5%), benefiting investors.

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