Based on data compiled by PricewaterhouseCoopers (PwC), Indonesia is among the countries with the highest value-added tax (VAT) rates in ASEAN for the 2023-2024 period.
Indonesia's VAT rate has been 11% since 2022. However, the government will increase the VAT rate to 12% next year.
This VAT increase is stipulated in Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP). Article 7, Chapter IV of the regulation states that the VAT rate will increase by 1% to 12%, effective no later than January 1, 2025.
This previous VAT rate placed Indonesia second highest in ASEAN. The Philippines holds the top position with a 12% VAT rate.
Below Indonesia are Cambodia and Vietnam, each with a 10% rate. Singapore has a goods and services tax (GST) of 9%.
Thailand and Laos follow with the same VAT rate of 7%.
Malaysia is next with a service tax of 6%. PwC notes that, in addition to the service tax, Malaysia also levies a 10% sales tax.
Myanmar has the lowest rate with a 5% commercial tax standard. PwC explains that there is no VAT in that country. Finally, Timor-Leste has a 2.5% import sales tax.
Please note that PwC has not yet presented data from Brunei Darussalam.