WorldTax CompareAll Comparisons

Indonesia vs Madagascar
Tax Rate Comparison

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

🇮🇩 Indonesia
vs
🇲🇬 Madagascar
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
5–35%
Stable; resource wealth affecting fiscal planning
No change
0–20%
20% top; climate adaptation and cyclone resilience priority
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12%
12% maintained; digital economy compliance growing
No change
20%
20% TVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
22%
Potential reduction to 20% under investment push
No change
20%
20% IBS; mineral royalties growing
No change
Capital Gains Tax
Capital Gains Tax
~2.5%
No change expected
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~18–23%
Universal health coverage expansion continuing
No change
~19%
CNaPS reform; coverage expanding
No change
State, Regional & Local Taxes

🇮🇩 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.

🇲🇬 MadagascarRegion & Commune Taxes

Madagascar's 6 provinces, 22 regions, and 1,695 communes levy Taxe Foncière sur les Terrains (TFT), Taxe Foncière sur les Propriétés Bâties (TFPB), and Taxe Professionnelle (TP — business licence). The Direction Générale des Impôts (DGI) administers national taxes. Madagascar is highly dependent on vanilla (world's largest producer), cloves, seafood exports, and mining (ilmenite, cobalt via Ambatovy). It's among the world's poorest countries. Cyclones regularly disrupt the economy and infrastructure.

⚠️ 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.

Indonesia vs Madagascar: Key Tax Differences (2026)

💰 Income Tax: 🇮🇩 Indonesia has a higher top income tax rate (5–35% vs 0–20%). 🇲🇬 Madagascar is more favourable for high earners.

🛒 VAT/Sales Tax: Madagascar has a higher consumption tax (12% vs 20%).

🏢 Corporate Tax: 🇲🇬 Madagascar offers a lower corporate rate (20% vs 22%), which can influence business location decisions.

📈 Capital Gains: 🇮🇩 Indonesia taxes investment gains at a lower rate (2.5% vs 20%), benefiting investors.

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