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Behavioural prompts to increase early filing of tax returns: a population-level randomised controlled trial of 11.2 million taxpayers in Indonesia

General Information

Project description

In Indonesia, as in other countries, a large proportion of tax returns are filed at the last minute. In a population-wide randomised controlled trial (n = 11,157,069), we evaluated the impact of behavioural email prompts on the proportion of annual tax returns filed at least two weeks before the deadline; and overall filing rate. In two control conditions, taxpayers either received no email or an email used in prior years, emphasising regulatory information. The five treatments informed by behavioural science were (1) a simplified version of the existing email, emphasising early filing; (2) the simplified version with additional guidance on filing taxes; (3) the simplified version with a planning prompt and option to sign up for email reminders; (4) a version combining treatments 1, 2 and 3; and (5) an email appealing to national pride. Compared to the no-email control, all emails led to a statistically significant increase in early and overall filing rates.

Detailed information

Final report: Is there a final report presenting the results and conclusions of this project?

Yes

Final report

Additional information

<h3>Collaboration with another BI unit</h3><div class="csp">Behavioural Insights Team (BIT)</div>

Who is behind the project?

Institution: Other
Team:

Project status:

Completed

Methods

Methodology: Field Experiment
Could you self-grade the strength of the evidence generated by this study?: 10

What is the project about?

Policy area(s): Tax policy
Topic(s): Compliance, Decision-making

Date published:

7 March 2023

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