General Information
Project description
Behaviorally informed messages have had demonstrated success in increasing tax compliance in multiple regional settings. In Indonesia, which has the largest economy in Southeast Asia, a trial from the Directorate General of Taxes (DGT) and World Bank teams looked at whether behaviorally informed messages and materials can impact tax compliance and payment rates among small and medium enterprises (SMEs). The results showed, to get delinquent firms to pay their taxes, information is not enough - one need an element of deterrence. To motivate current taxpayers to comply more accurately, providing simple information about the payment process is enough. Applied to the whole country, the treatment is a cost-benefit winner. With scaling in mind, the impacts of this intervention are meaningful and promising.
Detailed information
Final report: Is there a final report presenting the results and conclusions of this project?
Final report
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Additional information
Who is behind the project?
Project status:
Completed
Methods
What is the project about?
Date published:
25 June 2021