WorldTax CompareAll Comparisons

United Arab Emirates vs Indonesia
Tax Rate Comparison

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

🇦🇪 United Arab Emirates
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
0%
No personal income tax; unlikely to change short-term
No change
5–35%
Stable; resource wealth affecting fiscal planning
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
12%
12% maintained; digital economy compliance growing
No change

Corporate Tax Rate

Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
22%
Potential reduction to 20% under investment push
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
~2.5%
No change expected
No change

Social Security & Payroll

Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~18–23%
Universal health coverage expansion continuing
No change
State, Regional & Local Taxes

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

🇮🇩 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.

United Arab Emirates vs Indonesia: Key Tax Differences (2026)

💰 Income Tax: 🇮🇩 Indonesia has a higher top income tax rate (0% vs 5–35%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: Indonesia has a higher consumption tax (5% vs 12%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 22%), which can influence business location decisions.

📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 2.5%), benefiting investors.

Related Comparisons

🇦🇪 United Arab Emirates vs 🇧🇭 BahrainTax comparison🇦🇪 United Arab Emirates vs 🇩🇪 GermanyTax comparison🇦🇪 United Arab Emirates vs 🇰🇼 KuwaitTax comparison🇦🇪 United Arab Emirates vs 🇴🇲 OmanTax comparison🇦🇪 United Arab Emirates vs 🇶🇦 QatarTax comparison🇦🇪 United Arab Emirates vs 🇸🇦 Saudi ArabiaTax comparison🇦🇪 United Arab Emirates vs 🇸🇬 SingaporeTax comparison🇦🇪 United Arab Emirates vs 🇨🇭 SwitzerlandTax comparison🇦🇪 United Arab Emirates vs 🇬🇧 United KingdomTax comparison🇦🇪 United Arab Emirates vs 🇺🇸 United StatesTax comparison🇦🇪 United Arab Emirates vs 🇨🇳 ChinaTax comparison🇦🇪 United Arab Emirates vs 🇫🇷 FranceTax comparison
All 🇦🇪 United Arab Emirates comparisons →All 🇮🇩 Indonesia comparisons →