Southeast Asia Tax Rates and Amounts

Indonesia's tax rates are less competitive compared to other countries in the Southeast Asian (ASEAN) region. This is reflected in Indonesia's high tax rates compared to other countries. According to the World Bank's *Doing Business* 2017 report, the total domestic tax rate reached 30 percent, consisting of profit tax (16.6 percent), labor tax (11.5 percent), and other taxes (1.9 percent). This amount is higher than the tax rates in Brunei Darussalam, Singapore, and Cambodia, but lower than those in Myanmar, Vietnam, and Malaysia.

The types of tax levies in Indonesia number 43, the highest in ASEAN. Singapore, on the other hand, has the fewest tax levies, with only 5 types. The time required to pay taxes in Indonesia is also the longest, at 207 hours. Singapore, in contrast, requires only 64 hours and is the most efficient country in Southeast Asia for tax payments.

US President Donald Trump's policy of cutting taxes to 20 percent from the previous 35 percent has drawn global attention. The lower tax rate will increase the competitiveness of the United States as goods will be cheaper and profit potential will increase. This will undoubtedly attract investors to invest in the US. Certainly, US consumer purchasing power will increase, creating a ripple effect across all sectors.