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Indonesia vs Luxembourg Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Indonesia35%Lower
Luxembourg42%
Corporate Tax
Indonesia22%Lower
Luxembourg23.9%
Capital Gains
Indonesia22%
Luxembourg21%Lower
VAT / Sales Tax
Indonesia12%Lower
Luxembourg17%
| Category | Indonesia | Luxembourg |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 35% | 42% |
| Corporate Tax | 22% | 23.9% |
| Capital Gains | 22% | 21% |
| VAT / Sales Tax | 12% | 17% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 71 | 85 |
| Currency | IDR | EUR |
The bottom line: Indonesia vs Luxembourg
Indonesia has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Indonesia runs a progressive tax system, while Luxembourg uses a progressive one. Luxembourg has the wider tax-treaty network (85 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Indonesia is lower (35% vs 42%)
- Corporate tax: Indonesia is lower (22% vs 23.9%)
- Capital gains tax: Luxembourg is lower (22% vs 21%)
- VAT / sales tax: Indonesia is lower (12% vs 17%)