WorldTax CompareAll Comparisons

Indonesia vs Brazil
Tax Rate Comparison

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

🇮🇩 Indonesia
vs
🇧🇷 Brazil
Tax Year:

💰 Personal Income Tax Calculator

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

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
5–35%
Stable; resource wealth affecting fiscal planning
No change
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% maintained; digital economy compliance growing
No change
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
-0.5pp vs 2025

Corporate Tax Rate

Corporate Tax Rate
22%
Potential reduction to 20% under investment push
No change
34%
34% maintained; reform discussions ongoing
No change

Capital Gains Tax

Capital Gains Tax
~2.5%
No change expected
No change
15–22.5%
Offshore income now fully captured
No change

Social Security & Payroll

Social Security / Payroll
~18–23%
Universal health coverage expansion continuing
No change
~36%
Payroll simplification proposals ongoing
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.

🇧🇷 BrazilState & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–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%.

⚠️ 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 Brazil: Key Tax Differences (2026)

💰 Income Tax: 🇮🇩 Indonesia has a higher top income tax rate (5–35% vs 0–27.5%). 🇧🇷 Brazil is more favourable for high earners.

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

🏢 Corporate Tax: 🇮🇩 Indonesia offers a lower corporate rate (22% vs 34%), which can influence business location decisions.

📈 Capital Gains: 🇮🇩 Indonesia taxes investment gains at a lower rate (2.5% vs 22.5%), benefiting investors.

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