vs
Malaysia vs Indonesia Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Malaysia30%Lower
Indonesia35%
Corporate Tax
Malaysia24%
Indonesia22%Lower
Capital Gains
Malaysia10%Lower
Indonesia22%
VAT / Sales Tax
Malaysia8%Lower
Indonesia12%
| Category | Malaysia | Indonesia |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 30% | 35% |
| Corporate Tax | 24% | 22% |
| Capital Gains | 10% | 22% |
| VAT / Sales Tax | 8% | 12% |
| Crypto Tax | No | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 75 | 71 |
| Currency | MYR | IDR |
The bottom line: Malaysia vs Indonesia
Malaysia 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. Malaysia runs a progressive tax system, while Indonesia uses a progressive one. On crypto, Malaysia is the more favourable — it does not tax cryptocurrency gains. Malaysia has the wider tax-treaty network (75 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Malaysia is lower (30% vs 35%)
- Corporate tax: Indonesia is lower (24% vs 22%)
- Capital gains tax: Malaysia is lower (10% vs 22%)
- VAT / sales tax: Malaysia is lower (8% vs 12%)