WorldTax CompareAll Comparisons

Indonesia vs Denmark
Tax Rate Comparison

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

🇮🇩 Indonesia
vs
🇩🇰 Denmark
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
~55.9%
Among world's highest; stable
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% maintained; digital economy compliance growing
No change
25%
No change; EU digital VAT rules expanding
No change

Corporate Tax Rate

Corporate Tax Rate
22%
Potential reduction to 20% under investment push
No change
22%
Stable; defence spending debate may affect future rates
No change

Capital Gains Tax

Capital Gains Tax
~2.5%
No change expected
No change
27–42%
Progressive rates maintained
No change

Social Security & Payroll

Social Security / Payroll
~18–23%
Universal health coverage expansion continuing
No change
~8%
Labour market 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.

🇩🇰 DenmarkMunicipal Income Tax

Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%–27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55–56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.

⚠️ 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 Denmark: Key Tax Differences (2026)

💰 Income Tax: 🇩🇰 Denmark has a higher top income tax rate (5–35% vs ~55.9%). 🇮🇩 Indonesia is more favourable for high earners.

🛒 VAT/Sales Tax: Denmark has a higher consumption tax (12% vs 25%).

🏢 Corporate Tax: Corporate rates are similar in both countries (22% vs 22%).

📈 Capital Gains: 🇮🇩 Indonesia taxes investment gains at a lower rate (2.5% vs 42%), benefiting investors.

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