Publication:
Estimating Value Added Tax (VAT) and Corporate Income Tax (CIT) Gaps in Indonesia

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dc.contributor.authorWorld Bank
dc.date.accessioned2025-03-17T15:07:44Z
dc.date.available2025-03-17T15:07:44Z
dc.date.issued2025-03-17
dc.description.abstractThis note presents the results of the analysis of Value Added Tax (VAT) and Corporate Income Tax (CIT) compliance and policy gap estimates in Indonesia between 2016 and 2021. The study's objective is to quantify the magnitude of the tax gaps and to identify drivers behind the low efficiency of collecting the two primary sources of tax revenue. Top-down approaches based on national accounts were used to estimate the tax gaps. To derive the VAT gap using the top-down consumption-side approach, the VAT Total Tax Liability (VTTL) was calculated as the sum of the liability from five main components: final consumption by households, government and nonprofit institutions serving households, intermediate consumption, and gross fixed capital formation using primarily national accounts’ use table. The International Monetary Fund’s (IMF) Revenue Administration Gap Analysis Program framework estimated the CIT gap. This top-down approach uses national accounts’ gross operating surplus (GOS) data and makes appropriate adjustments to reflect conceptual differences between the GOS and CIT base.en
dc.identifierhttp://documents.worldbank.org/curated/en/099030225225027356
dc.identifier.doi10.1596/42959
dc.identifier.urihttps://hdl.handle.net/10986/42959
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesProsperity Insight Series
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectVALUE ADDED TAX (VAT)
dc.subjectCORPORATE INCOME TAX (CIT)
dc.subjectTAX GAPS
dc.titleEstimating Value Added Tax (VAT) and Corporate Income Tax (CIT) Gaps in Indonesiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/212 Reproducibility package link
okr.date.disclosure2025-03-17
okr.date.lastmodified2025-03-06T23:05:51Zen
okr.doctypePublications & Research
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/099030225225027356
okr.guid099030225225027356
okr.identifier.docmidP179625-874d19d7-25d2-4a65-95e9-7d018e8de592
okr.identifier.externaldocumentum34461602
okr.identifier.internaldocumentum34461602
okr.identifier.report197554
okr.import.id6891
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099030225225027356/pdf/P179625-874d19d7-25d2-4a65-95e9-7d018e8de592.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.sectorFY17 - Central Government (Central Agencies)
okr.sectorFY17 - Public Administration
okr.themeFY17 - Climate change,FY17 - Fiscal Policy,FY17 - Public Finance Management,FY17 - Domestic Revenue Administration,FY17 - Mitigation,FY17 - Monetary and Credit Policies,FY17 - Tax policy,FY17 - Macro-financial policies
okr.themeFY17 - Public Sector Management,FY17 - Environment and Natural Resource Management,FY17 - Economic Policy
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.unitEFI-EAP-MTI-MacroFiscal-2 (EEAM2)
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