Thailand vs Indonesia taxes (2026): income, company and dividends

Thailand vs Indonesia tax rates at a glance

Tax	🇹🇭 Thailand	🇮🇩 Indonesia
Income tax	Personal income tax: 0% to 35% Top bracket: 35% Foreign income: Taxable if remitted Social security: 5% (THB 750 max)	Resident individual PIT: 5% - 35% PTKP baseline: IDR 54m Non-resident Article 26: 20% / treaty rate Employee BPJS health: 1% Employee JHT: 2% Employee JP: 1%
Corporate tax	Corporate income tax: 20% SME corporate tax: 0% / 15% / 20% Foreign-company WHT: 15% Petroleum income tax: 50% Top-up tax: 15%	Standard CIT: 22% Qualifying public company: 19% Small-company facility: 11% effective on eligible profit Eligible MSME final tax: 0.5% of turnover Branch-profit remittance: 20% / treaty VAT registration threshold: IDR 4.8bn turnover
Capital gains tax	Capital gains tax: 0% to 35% Listed share gains: 0% Crypto gains: 0% Ordinary income treatment: 35%	General private-asset gains: 5% - 35% PIT / 22% CIT Listed share sales: 0.1% of gross proceeds Founder-share treatment: 0.5% additional rule may apply Land and building transfer: 2.5% of gross value Qualifying low-cost housing: 1% Crypto sales: 0.21% domestic / 1% foreign platform
Dividend tax	Dividend withholding tax: 10% Resident individuals: 10% Resident corporations: 0% / 10% Non-residents: 10%	Domestic dividends to resident companies: 0% Resident individual dividends: 0% if qualifying / 10% final otherwise Foreign dividends to residents: Exempt if reinvested / ordinary rules Dividends to non-residents: 20% / treaty rate Foreign tax credit: Available under conditions
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	General net wealth tax: 0% PBB-P2 local property tax: Up to 0.3% Certain PBB sectors: 0.5% statutory rate BPHTB acquisition duty: Up to 5% Stamp duty: IDR 10,000 Income from assets: PIT / CIT / final rates
Inheritance / estate tax	Inheritance tax: 10% Ascendants and descendants: 5% Spouse: 0% Threshold: THB 100 million	Separate inheritance tax: 0% Inherited assets under PPh: Generally not an income-tax object BPHTB on inherited land or buildings: Up to 5% Estate income before distribution: PIT / CIT / final rates Later property sale: 2.5% final transfer tax generally
VAT / GST / sales tax	VAT: 7% (temporary)	VAT: 11% effective / 12% luxury

Who wins on each tax

Personal income taxTie

Both top at 35%, but Thailand's remitted foreign-income rule and Indonesia's worldwide-resident approach can produce different outcomes.

Corporate taxThailand

Thailand's standard corporate rate is 20%, below Indonesia's 22%; qualifying SME and MSME turnover regimes can change the small-business answer.

Capital gains taxTie

Thailand has no separate individual CGT but generally taxes gains as income, while Indonesia uses 0.1% listed-share and 2.5% land-transfer final taxes for key assets.

Dividend taxTie

Thailand generally withholds 10%; Indonesia generally uses 10% for resident individual dividends unless qualifying reinvestment gives exemption, and 20% for non-residents before treaty relief.

Inheritance taxIndonesia

Thailand charges 5% or 10% only above THB 100 million in relevant estates; Indonesia has no separate inheritance tax, though inherited property can face BPHTB.

The verdict

Both personal scales top at 35%, but Thailand taxes foreign income earned from 2024 onward when remitted, while Indonesia generally taxes resident worldwide income. Residence and remittance timing are central.

Thailand's standard corporate rate is 20%, below Indonesia's 22%, while Indonesia has a 0.5% MSME turnover regime for qualifying businesses and Thailand has its own SME tiers.

Choose Thailand for a standard operating company and clearer dividend rate; choose Indonesia for a large local-market strategy or a qualifying turnover and investment profile. Permanent establishment, CFC, substance and treaty rules must be tested.

How to read this comparison

Thailand is usually the cleaner standard-company choice; Indonesia can win for a qualifying MSME, listed-share or local-market plan. Remittance and permanent-establishment analysis are critical.

Frequently asked questions

Is Thailand or Indonesia lower tax?

Thailand is usually lower for a standard company and Indonesia can be lower for qualifying small turnover businesses or inherited assets. Personal tax depends heavily on worldwide-income and remittance facts.

Does Thailand tax foreign income?

Thailand taxes foreign income earned from 2024 onward when it is remitted into Thailand for residents. The character of the income, timing and treaty position still need to be checked.