{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2024-11-05","version":"1"},"project_desc":{"authoring_entity":[{"name":"Anthony Obeyesekere","email":"aobeyesekere@worldbank.org","affiliation":"World Bank"},{"name":"Ratih Dwi Rahmadanti","email":"rrahmadanti@worldbank.org","affiliation":"World Bank"}],"title_statement":{"idno":"FR_IDN_2024_217","title":"Reproducibility package for Tax Policy Review in Indonesia: Corporate Income Tax, Alternative Final Tax, and Value-Added Tax"},"abstract":"Approximately two-thirds of Indonesia's tax revenue is derived from business income and value-added taxes, however, these collections still fall short of their full potential. To better understand weaknesses in the design and implementation of these taxes and ultimately address the shortfall in their revenue mobilization, an in-depth analysis of each tax is essential. This paper examines the policy framework of the corporate income tax (CIT); the alternative final tax (AFT) for micro, small, and medium enterprises; and the value-added tax (VAT). It identifies key policy gaps that have undermined revenue potential\u2013including high eligibility thresholds and generous exemptions that narrow the tax base. The presence of multiple tax rates also complicates the tax system and increases the compliance burden. To improve tax revenue, the administration should consider lowering the eligibility threshold, eliminating special tax treatments, and simplifying tax schemes.","geographic_units":[{"name":"Indonesia","code":"IDN","type":"Country"}],"datasets":[{"note":"Source: International Monetary Fund (IMF)\nFilename: world-imf2024-v1.dta\n","name":"World Revenue Longitudinal Database","access_type":"Publicly available and included in the reproducibility package","uri":"https:\/\/www.imf.org\/en\/Topics\/fiscal-policies\/world-revenue-longitudinal-database"},{"name":"Corporate Income Tax ","note":"Source: OECD.Stat\nFilename: Charts - Tax policy review.xlsx, sheet \"2.3\", \"2.4\" and \"2.5\"","access_type":"Publicly available and included in the reproducibility package","uri":"https:\/\/doi.org\/10.1787\/data-00900-en","license_uri":"https:\/\/www.oecd.org\/en\/about\/terms-conditions.html"},{"name":"Gross Operating Surplus - Singapore ","uri":"https:\/\/tablebuilder.singstat.gov.sg\/","note":"Source: Singapore Department of Statistics (DOS) \nFilename: Charts - Tax policy review.xlsx, sheet \"2.5\"","access_type":"Publicly available and included in the reproducibility package","license_uri":"https:\/\/www.singstat.gov.sg\/terms-of-use"},{"name":"Gross Operating Surplus - Malaysia","note":"Source: Jabatan Perangkaan Malaysia\nFilename: Charts - Tax policy review.xlsx, sheet \"2.5\"","uri":"https:\/\/archive.data.gov.my\/data\/dataset\/gross-operating-surplus-by-kind-of-economic-activity-at-current-prices","access_type":"Publicly available and included in the reproducibility package","license":"Creative Commons Attribution License","license_uri":"https:\/\/opendefinition.org\/licenses\/cc-by\/"},{"name":"Gross Operating Surplus - Indonesia","note":"Source: Badan Pusat Statistik\nFilename: Charts - Tax policy review.xlsx, sheet \"2.5\"","access_type":"Publicly available and included in the reproducibility package","uri":"Source: https:\/\/fiskal.kemenkeu.go.ihttps:\/\/www.bps.go.id\/id\/statistics-table\/1\/MjExNCMx\/tabel-input-output-indonesia-transaksi-total-atas-dasar-harga-pembeli--17-produk---2016---juta-rupiah-.htmld\/publikasi\/tax-expenditure-report","license_uri":"https:\/\/www.bps.go.id\/id\/term-of-use"},{"uri":"https:\/\/psa.gov.ph\/system\/files\/eiad\/Consolidated%2520Accounts%2520I%2520-%2520Gross%2520Domestic%2520Product%2520and%2520Expenditure_0.xlsx","name":"Gross Operating Surplus - Philippines","access_type":"Publicly available and included in the reproducibility package","note":"Source: The Philippine Statistics Authority (PSA)\nFilename: Charts - Tax policy review.xlsx, sheet \"2.5\""},{"name":"Gross Operating Surplus - Thailand","uri":"https:\/\/data.un.org\/Data.aspx?d=SNA&f=group_code%3A203","note":"Source: UNdata\nFilename: Charts - Tax policy review.xlsx, sheet \"2.5\"","access_type":"Publicly available and included in the reproducibility package","license_uri":"https:\/\/data.un.org\/Host.aspx?Content=UNdataUse"},{"name":"Income tax expenditure data","uri":"https:\/\/doi.org\/10.5281\/zenodo.12585656  ","access_type":"Publicly available and included in the reproducibility package","note":"Source: Global Tax Expenditures Database (GTED)\nFilename: Charts - Tax policy review.xlsx, sheet \"2.8\""},{"name":"Historical Value-added Tax (VAT) rates","note":"Source: IMF Tax Policy Assessment Framework (TPAF)\nFilename: Charts - Tax policy review.xlsx, sheet \"4.1\"","access_type":"Publicly available and included in the reproducibility package","uri":"https:\/\/www.imf.org\/external\/np\/fad\/tpaf\/files\/VAT_historic_rates.xlsx "},{"name":"Value-added Tax (VAT) rates - Upper Middle Income Countries (UMICs)","note":"Source: IMF World Revenue Longitudinal Data (WoRLD)\nFilename: Charts - Tax policy review.xlsx, sheet \"4.2\"\n","access_type":"Publicly available but not included in the reproducibility package.","uri":"https:\/\/data.imf.org\/?sk=77413f1d-1525-450a-a23a-47aeed40fe78  ","license_uri":"https:\/\/www.imf.org\/en\/About\/copyright-and-terms#data"},{"name":"C-efficiency data","note":"Source: CEIC Data\nFilename: Charts - Tax policy review.xlsx, sheet \"4.3\"","access_type":"Data access requires purchase or human approval and is not included in the reproducibility package.","uri":"https:\/\/insights.ceicdata.com\/login"},{"name":"Value Added Tax (VAT) revenue to Gross Domestic Product (GDP) - Argentina ","note":"Source: OECD Data Explorer Archive\nFilename: Charts - Tax policy review.xlsx, sheet \"5A.1\"","access_type":"Publicly available but not included in the reproducibility package.","uri":"https:\/\/data-explorer.oecd.org\/vis?tenant=archive&df[ds]=DisseminateArchiveDMZ&df[id]=DF_REVARG&df[ag]=OECD&dq=.&lom=LASTNPERIODS&lo=5&to[TIME_PERIOD]=false","license_uri":"https:\/\/www.oecd.org\/en\/about\/terms-conditions.html"},{"uri":"https:\/\/ec.europa.eu\/eurostat\/databrowser\/view\/nama_10_gdp\/bookmark\/table?lang=en&bookmarkId=b43a1333-eb8a-4efe-bebe-279bf6bc73d8","note":"Source: Eurostat\nFilename: Filename: Charts - Tax policy review.xlsx, sheet \"5A.2\". \"5A.3\", \"8A.1\", \"8A.2\"","name":"Gross domestic product (GDP) and main components (output, expenditure and income)","access_type":"Publicly available but not included in the reproducibility package."},{"name":"Worker and Household Enterprise Survey (WHES)","note":"Source: World Bank\nFilename: M2_F.dta, Charts - Tax policy review.xlsx, sheet \"4.6\"\nWHES is an internal dataset, owned by the Poverty Global Practice in World Bank Indonesia Country Office. Users can contact Imam Setiawan at isetiawan@worldbank.org to gain access to thos data","access_type":"There is no documented way to access the data, and it is not included in the reproducibility package."}],"software":[{"name":"Stata","version":"18 MP"},{"name":"Excel ","version":"Microsoft Excel for Microsoft 365 MSO"}],"scripts":[{"file_name":"FR_IDN_2025_217","zip_package":"FR_IDN_2024_203.zip","title":"Reproducibility package for Tax Policy Review in Indonesia: Corporate Income Tax, Alternative Final Tax, and Value-Added Tax","date":"2025-06","notes":"Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.","instructions":"See README in reproducibility package.","dependencies":"The reproducibility package does not use external dependencies"}],"output":[{"type":"World Bank Reports & Flagships","title":"Tax Policy Review in Indonesia: Corporate Income Tax, Alternative Final Tax, and Value-Added Tax ","authors":"Anthony Obeyesekere, Ratih Dwi Rahmadanti"}],"data_statement":"Some data is restricted and has not been included in the reproducibility package.","reproduction_instructions":"To successfully replicate the analysis provided in this package, users should follow the instructions in the README file and replicate the analysis using the Excel sheets. Some data is restricted, so users will not be able run the Stata dofile \"v2 VAT_threshold_graph\" and verify Figures 4.3 and 4.6.","technology_environment":"Paper exhibits were reproduced in a computer with the following specifications:\n\u2022 OS: Windows 10 Enterprise\n\u2022 Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.90 GHz (2 processors)\n\u2022 Memory available: 32 GB\n\u2022 Software version: Microsoft Excel for Microsoft 365 MSO","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Ratih Dwi Rahmadanti","affiliation":"World Bank","email":"rrahmadanti@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"language":[{"name":"English","code":"EN"}],"production_date":"2025-06"},"tags":[{"tag":"Open code"},{"tag":"Restricted data"}],"schematype":"script"}