WorldTax Compareโ† All Comparisons

Indonesia vs Malaysia
Tax Rate Comparison

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

๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia
vs
๐Ÿ‡ฒ๐Ÿ‡พ Malaysia
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
5โ€“35%
Stable; resource wealth affecting fiscal planning
No change
0โ€“30%
30% top rate; Pillar Two compliance measures
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12%
12% maintained; digital economy compliance growing
No change
10%
Service tax 8% maintained; GST return unlikely
No change
Corporate Tax Rate
Corporate Tax Rate
22%
Potential reduction to 20% under investment push
No change
24%
24% stable; potential reduction discussed for competitiveness
No change
Capital Gains Tax
Capital Gains Tax
~2.5%
No change expected
No change
10โ€“30%
CGT on unlisted shares fully embedded in system
No change
Social Security & Payroll
Social Security / Payroll
~18โ€“23%
Universal health coverage expansion continuing
No change
~23%
EPF reviewing contribution rates and fund adequacy
No change
State, Regional & Local Taxes

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.

๐Ÿ‡ฒ๐Ÿ‡พ Malaysia โ€” State & Local Authority Taxes

Malaysia's 13 states and 3 federal territories have limited independent taxing powers. States levy quit rent (cukai tanah) on land, assessment rates (cukai pintu/taksiran) on property through local councils, and royalties on natural resources. Petroleum royalties are a major state revenue in Sabah, Sarawak, and Terengganu. Local councils (majlis perbandaran) levy property assessment at 6%โ€“12% of estimated annual rental value. No state income taxes exist โ€” this is federal.

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.

Indonesia vs Malaysia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia has a higher top income tax rate (5โ€“35% vs 0โ€“30%). ๐Ÿ‡ฒ๐Ÿ‡พ Malaysia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Indonesia has a higher consumption tax (12% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia offers a lower corporate rate (22% vs 24%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia taxes investment gains at a lower rate (2.5% vs 30%), benefiting investors.

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