WorldTax CompareAll Comparisons

Indonesia vs Bahrain
Tax Rate Comparison

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

🇮🇩 Indonesia
vs
🇧🇭 Bahrain
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
5–35%
Stable; resource wealth affecting fiscal planning
No change
0%
No personal income tax
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% maintained; digital economy compliance growing
No change
10%
10% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
22%
Potential reduction to 20% under investment push
No change
0%
0% standard; MNC Pillar Two compliance maturing
No change

Capital Gains Tax

Capital Gains Tax
~2.5%
No change expected
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~18–23%
Universal health coverage expansion continuing
No change
~19%
SIO contributions stable
No change
State, Regional & Local Taxes

🇮🇩 IndonesiaProvincial & Regional Taxes

Indonesia's 38 provinces and 514 regencies/cities levy their own taxes. Provinces charge vehicle tax (Pajak Kendaraan Bermotor) at 1%–2%, vehicle transfer tax, and fuel tax (Pajak Bahan Bakar Kendaraan). Regencies/cities levy hotel tax (10%), restaurant tax (10%), entertainment tax (0%–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.

🇧🇭 BahrainMunicipal Fees & Levies

Bahrain has no income tax on individuals and no corporate income tax for most businesses outside the oil sector. Municipalities collect fees for commercial registrations and services. Bahrain introduced VAT at 5% in 2019, raised to 10% in 2022. Social insurance is administered by the Social Insurance Organization (SIO). Bahrain's Economic Vision 2030 aims to diversify from oil. The country is a regional financial hub and attracts holding companies due to its zero-tax environment for most activities.

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

Indonesia vs Bahrain: Key Tax Differences (2026)

💰 Income Tax: 🇮🇩 Indonesia has a higher top income tax rate (5–35% vs 0%). 🇧🇭 Bahrain is more favourable for high earners.

🛒 VAT/Sales Tax: Indonesia has a higher consumption tax (12% vs 10%).

🏢 Corporate Tax: 🇧🇭 Bahrain offers a lower corporate rate (0% vs 22%), which can influence business location decisions.

📈 Capital Gains: 🇧🇭 Bahrain taxes investment gains at a lower rate (0% vs 2.5%), benefiting investors.

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