WorldTax CompareAll Comparisons

Italy vs Indonesia
Tax Rate Comparison

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

🇮🇹 Italy
vs
🇮🇩 Indonesia
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
23–43%
3-bracket IRPEF reform targeting completion
No change
5–35%
Stable; resource wealth affecting fiscal planning
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
12%
12% maintained; digital economy compliance growing
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
22%
Potential reduction to 20% under investment push
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
~2.5%
No change expected
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~18–23%
Universal health coverage expansion continuing
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

🇮🇩 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.

⚠️ 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.

Italy vs Indonesia: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 5–35%). 🇮🇩 Indonesia is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 12%).

🏢 Corporate Tax: 🇮🇩 Indonesia offers a lower corporate rate (22% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇮🇩 Indonesia taxes investment gains at a lower rate (2.5% vs 26%), benefiting investors.

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