This chapter looks at the tax assessment function, which includes all activities related to processing tax returns and payments. It examines the use of e-channels for filing and paying, outlines administrations’ efforts to provide pre-filled returns, and discusses the level of on-time return filing and payment.
Tax Administration 2025
Comparative Information on OECD and other Advanced and Emerging Economies
Abstract
The tax assessment function includes all activities related to processing tax returns, including issuing assessments, refunds, notices and statements. It also includes the processing and banking of payments. These activities continue to be an area of significant change and focus as administrations look to take costs out of high-volume processes.
As reported in previous editions of this series, the widespread enabling of electronic filing and payment by taxpayers has helped administrations to reduce their costs and improve the services they provide. This trend continues with an increasing range of supporting services and options being made available.
Tax administrations are also managing an expanding range of data that administrations are collecting electronically, including from a growing number of third-party organisations. This is facilitating a shift towards more intelligent use of data, and more complete pre-filled returns, increasingly driven by the use of artificial intelligence and machine learning. This is also helping to create more upstream compliance approaches that can minimise or prevent errors in returns. As well as updating information on the channels used for filing and paying, this chapter will outline:
Administrations’ efforts to provide pre-filled returns for individual and corporate taxpayers, including the expansion of this approach by some into completely pre-filled returns for individuals and businesses;
The levels of on-time return filing and payment; and
Examples of how technology and the application of data sciences are further improving these processes.
To increase uptake in the use of e-filing and e-payment channels, many jurisdictions have also mandated the use of electronic channels for most taxpayers (or most employers in the case of employer withholding taxes).
Thanks to mandating the use of e-channels, and with digitalisation continuing to transform everyday life, it is unsurprising that the actual use of e‑filing and e-payment channels is high. With the implementation of those channels embedded across a wide range of administrations these rates are expected to remain stable with only incremental increases going forward.
Note: The table shows the average e-filing rates for those jurisdictions that were able to provide the information for the years 2018 to 2023. The number of jurisdictions for which data was available is shown in parentheses. As regards Employer withholding (i.e. PAYE) return, the underlying question was introduced in ISORA 2023 and therefore data is only available for the years 2022 and 2023.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.26 Electronic filing: CIT and PIT, and D.27 Electronic filing: PAYE and VAT, http://isoradata.org (accessed on 1 October 2025).
Table 4.1. outlines average e-filing rates from jurisdictions that provided details of channels used by taxpayers to file for the years 2018 to 2023. Over that period, around 95% of business taxpayers filed their returns electronically. For personal income tax return filers this figure is around 90% as well. Also, it should be noted that for a significant number of administrations a 100% e‑filing rate is the reality across the main tax types (see Tables D.26 and D.27).
The evolution of e-filing rates over the 10-year period from 2014 to 2023 is shown in Table 4.2., and it is clear that e-filing rates have increased significantly – between 18 and 24 percentage points – across the three main tax types. (It should be noted that the table only takes into account information from jurisdictions for which data was available for both years 2014 and 2023, which explains the differences in 2023 averages shown in Table 4.1. and Table 4.2.)
Note: The table shows the average e-filing rates for those jurisdictions that were able to provide the information for the years 2014 and 2023. The number of jurisdictions for which data was available is shown in parentheses.
Sources: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.26 Electronic filing: CIT and PIT, and D.27 Electronic filing: PAYE and VAT, http://isoradata.org (accessed on 1 October 2025), and OECD (2017), Tax Administration 2017: Comparative Information on OECD and Other Advanced and Emerging Economies, Table A.8., https://doi.org/10.1787/tax_admin-2017-en.
As for electronic payments rates, as can be seen in Table 4.3., around 90% of payments, measured by number and value, were made electronically in 2023. This represents an increase since 2018 of around 10 percentage points as measured by number and value of payments. The percentage of e-payments by value is slightly higher than the percentage of e-payments made by number, suggesting that particularly larger taxpayers make use of this payment channel. However, as with e-filing, it should be noted that for a significant number of administrations a 100% e‑payment rate is the reality across the main tax types (see Table D.40).
(Due to a change in the definition of the underlying survey question, comparisons that examine the evolution of e-payment rates since 2014 would not be reliable.)
Note: The table shows the average e-payment rates for those jurisdictions that were able to provide the information for the years 2018 to 2023. The number of jurisdictions for which data was available is shown in parentheses.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Table D.40 Electronic payment proportions and third party withholding, http://isoradata.org (accessed on 1 October 2025).
It is worth noting though that despite the progress made on digital filing and payments, the scale of tax administration means that the small percentage of returns filed through non-electronic channels translates into large numbers, Among those jurisdictions that provided data, more than 75 million returns (for PIT, CIT, PAYE and VAT) were still filed on paper (see Tables A.48, A.52, A.56 and A.61).
Although it is to be expected that this figure will further decline over time, it is clear that the incentives for administrations to take steps to encourage more taxpayers to use electronic platforms remain. This will not only lower administration costs but could also reduce the administrative burden on taxpayers over time.
Korea - Automated platform for electronic filing
The Korean National Tax Service (NTS) has introduced Hometax, an automated platform with 37 million users and 8.8 million daily visits. Hometax is Korea's largest electronic government platform. It enables electronic filing for all types of taxes, offering tax calculation and error-checking features.
Hometax also enhances the tax filing experience with several AI features:
AI search engine: Users can find relevant information without knowing exact tax terms. The system analyses user data, similar inquiries, and filing periods to provide accurate search results. For example, if a delivery worker enters "delivery" during the filing season, the system prioritises the income tax filing page for them.
Pre-filled tax forms: Hometax provides pre-filled income tax and VAT return forms using NTS data, replacing blank forms for a more streamlined process.
Tailored services: The system offers personalised information based on user and NTS needs. For example, when a taxpayer logs and they have outstanding tax payments, this is prominently displayed.
This offers significant benefits for the taxpayer, as Hometax functions like a personal assistant. It understands their needs and guides them through the tax filing process efficiently.
Switzerland – VAT online obligation
Switzerland’s Federal Tax Administration is taking a significant step towards more modern and efficient tax administration with the complete digitisation of its VAT declarations.
Since 1 January 2024, companies are obliged to submit their VAT returns online via the electronic Portal (ePortal). A transitional period allowed companies that previously used paper-based accounting to switch to the purely electronic procedure by 31 December 2024, however from 1 January 2025, electronic filing is mandatory for all companies.
The aim of this is to make tax processes more efficient, error-free and transparent. Automated systems allow companies to calculate their tax burden directly, which significantly reduces the administrative burden. Digital transmissions also minimise typical input errors. The centralised storage of all relevant data in the ePortal promotes traceability and facilitates control for both, companies and the administration.
The ePortal offers a wide range of user-friendly functionalities. In addition to completing and submitting the VAT return online, companies can also submit amendments and fix inaccuracies retrospectively, apply for deadline extensions and track their VAT obligations. The integration with accounting software also allows relevant data to be uploaded directly by the taxpayers, while fiduciary companies and tax advisers can manage all their customers in the ePortal and are notified of declaration deadlines.
This illustrates how targeted digitisation measures can modernise tax administrations and make their processes more efficient, facilitate compliance and significantly improve services for taxpayers.
Sources: Korea (2025) and Switzerland (2025).
One of the significant innovations in tax return process design over the last two decades has been the development of pre-filled tax returns. The pre-filled approach involves administrations “pre-populating” the taxpayer’s return or on-line account with information from third parties. The pre-filled return can be reviewed by the taxpayer and either filed electronically or in paper form. Table 4.4. shows that close to 90% of administrations are pre-filling PIT returns. This percentage has now been stable since 2021.
As the extent of pre-population is generally determined by the range of electronic data sources available to the administration, it is critical to this approach that the legislative framework provides for extensive and timely third-party reporting covering as much relevant taxpayer information as possible. The complexities of the legal frameworks governing tax can be a barrier to more automated tax calculations, and to help overcome this some tax administrations are exploring the use of machine-readable legislation which can help automate the calculation process through the use of algorithms.
Percentage of administrations that pre-fill personal income tax returns
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Table A.99 Pre-fill of PIT returns: Income information - Personal information, and wage and salary, http://isoradata.org (accessed on 1 October 2025).
Advocates of pre-filling initially encouraged its use with individual tax regimes that allowed relatively few deductions and credits, and where they could be verified with third party data sources. Advances in rules-based technologies, information-reporting requirements and the application of data science techniques mean that the approach can now be considered more widely. For example, survey responses show that in many jurisdictions PIT returns are pre-filled with different income information and deductible expenses such as donations, school and university fees and insurance premiums (see Table 4.5. and Table 4.6.).
As a percentage of administrations that pre-fill personal income tax returns
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables A.99 Pre-fill of PIT returns: Income information - Personal information, and wage and salary, A.100 Pre-fill of PIT returns: Income information - Pension, interest, and dividends, and A.101 Pre-fill of PIT returns: Income information - Capital gains / losses, and other income, http://isoradata.org (accessed on 1 October 2025).
As a percentage of administrations that pre-fill personal income tax returns
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables A.102 Pre-fill of PIT returns: Expense information - Donations, school and university fees, and childcare expenses, A.103 Pre-fill of PIT returns: Expense information - Insurance premiums, health and medical expenses, and retirement contributions, and A.104 Pre-fill of PIT returns: Expense information - Interest, and other expenses, http://isoradata.org (accessed on 1 October 2025).
In a growing number of jurisdictions, this concept now goes as far as totally pre-filling PIT returns, which the taxpayer then has to either agree (which may be by deemed agreement after a certain period of elapsed time) or provide further information which may lead to an upwards or downwards adjustment (see Table A.53B). In their most advanced form, complete pre-filled returns are being generated for large proportions of the individual tax base. In addition, the availability of technology solutions and approaches, such as electronic invoicing systems, allows tax administrations to start to go beyond PIT returns and pre-fill CIT, PAYE and VAT returns (see Tables A.49B, A.57B and A.62B).
The latest pre-filling developments in some jurisdictions are described in Box 4.2.
Brazil - Electronic receipts for health services
Brazil have introduced electronic receipts for health services provided by healthcare professionals, which can be used in the completion of tax returns. The electronic receipts are stored on the Revenue Service application (app) and are automatically loaded as deductible expenses in the pre-filled income tax return of the patients and as income in the professional's declaration. This tool eliminates the need for patients and professionals to keep paper receipts, as the electronic receipts can be checked in the application. In addition to facilitating the completion of declarations, issuing electronic receipts aims to reduce the issuance of false receipts and receipts issued by unqualified professionals.
China (People’s Republic of) - Optimising and upgrading the confirmation and supplementary pre-payment declaration mode of corporate income tax
In recent years, the State Taxation Administration of the People’s Republic of China (STA) has been analysing behaviours related to CIT declarations to provide taxpayers with an improved filing model. This model, whose main features include "classification based on key characteristics, intelligent pre-filling and dynamic declaration," aims to continuously enhance the convenience and personalisation of CIT prepayment declarations and optimise the business tax environment.
The STA has upgraded the filing process to allow the automatic pre-calculation of the tax amount allowing taxpayers to complete their declarations simply by clicking "confirm." The system can also automatically generate partial data, allowing taxpayers complete the declaration by filling in the remaining data.
Through this the tax declaration system can optimises the calculation process, reducing the burden of tax filing, and enhancing the accuracy of the data. Taxpayers can also access, enquire about, and print complete declaration forms at any time through the system.
Georgia - Pre-filled income tax declaration mechanism for small businesses
The Georgian Revenue Service introduced the "Pre-Filled Income Tax Declaration Mechanism for Small Businesses", as part of its focus on customer-oriented services and to promote voluntary tax compliance. This was first introduced for the income tax declaration of small businesses, as individuals with small business status are less likely to use accounting services, and allows for the timely declaration, completeness, and accurate administration of tax returns.
As part of the implementation process it was necessary to modify the income tax declaration form for small businesses, including breaking down declaration fields according to income types. When filling out the small business income tax declaration, taxpayers have now the option to use the tax authority's pre-filling service by selecting the "Auto-Fill" button. By selecting this option, the relevant fields of the declaration are automatically populated according to the taxpayer’s income type. The taxpayer is then required to review and verify the accuracy of the provided data.
This mechanism is available for tax declarations starting from the reporting period of December 2024. So far, approximately 20 000 taxpayers have used this service.
Sources: Brazil (2025), China (People’s Republic of) (2025) and Georgia (2025).
As the levels of data available to support pre-filling grows, tax administrations are able to develop predictive techniques that can spot errors that taxpayers make as they finalise their return, and also prevent non-compliance. Examples of this have been included in previous editions. See, for example, Box 4.3. in Tax Administration 2022 (OECD, 2022[1]). These can be combined with techniques to prompt action, creating whole new approaches to compliance which are bringing the compliance work ‘upstream’ into tax administration processes, as Box 4.3. highlights.
Denmark – Real-time validation of tax returns
As part of its strategic focus on moving activities and compliance checks to the earlier phases of its business model, the DTA has implemented a series of digital controls and validations. The aim is to secure as much tax revenue as possible at the ‘front door’ - during the registration, declaration, or payment phases - thereby reducing reliance on the final and often costly phase of audit reviews.
One prominent example is the use of real-time validation in the Danish Electronic-tax system, where several checks are implemented that automatically reject changes to taxpayers’ annual tax assessment notices that are inconsistent, considered highly improbable, or do not align with other information available to the tax administration. When these changes are blocked, to complete their tax returns taxpayers are required to either amend their submissions or contact the tax administration for assistance. Errors and incorrect information are therefore intercepted and reduced in the declaration phase.
The checks are activated more than 1 million times a year by over 500 000 different taxpayers. Analysis reveals a total difference of nearly DKK 1.1 billion (approximately EUR 150 million) between taxpayers' initially rejected submissions and their most recent tax assessments. Furthermore, only a small proportion of taxpayers whose declarations are blocked – for example, due to the size of the deduction amount – do subsequently contact the DTA, meaning a minimal burden.
Spain – Warning system to increase the accuracy of tax returns
The Spanish Tax Agency has implemented a warning system for after a taxpayer has filed their self-assessments and tax returns, to improve the quality of information obtained from third parties.
With this system, when submitting information, the taxpayer is immediately informed if there are any inaccuracies that have not prevented its submission, but which affect the quality of the information submitted.
This is advantageous for the taxpayer because the tax return calculation is free and enables any discrepancies to be spotted and fixed, as opposed to requiring an audit. In this sense, it is important to bear in mind that the initiation of an audit process requires a lot of time from the taxpayer in terms of providing the relevant documentation and adhering to the process, but also can generate anxiety for taxpayers. Most of the time taxpayers want to comply with the rules and discrepancies are genuine mistakes, so investigations or audits can generate uneasiness for them.
Sources: Denmark (2025) and Spain (2025).
Even allowing for changes occurring because of pre-filled or no-return regimes, typically the filing of a tax return is still the principal means by which a tax liability is established and becomes payable. As a result, the on-time filing rate is seen as an effective measure of the health of the tax system as well as the performance of the tax administration itself.
Traditionally, the ISORA survey measured on-time return filing by putting the number of returns received on-time in relation to the total number of returns expected. However, ISORA 2023 introduced a new data point which allowed on-time return filing rate also to be measured in relation to the total number of returns received.
Table 4.7. summarises on-time return filing for those administrations able to supply information by tax type. As regards the on-time filing rate in relation to the number of returns expected, apart from CIT, the rates are around 85%. The picture is similar when calculating the on-time filing rate in relation to the number of returns received, where the rates for PIT, PAYE and VAT on-time return filing are around 90% while the CIT on-time filing rate is 5 percentage points lower. This lower rate is understandable as there is often more complexity in the corporate income tax system and the preparation of financial statements and year-end reports. However, as Figure 4.1 and the accompanying text illustrate there is a wide variance in these rates.
As anticipated, the on-time filing rates expressed as the number of returns received on-time as a percentage of returns received, are noticeably higher than the on-time filing rates expressed in relation to the number of returns expected.
Note: The table shows the average on-time filing rates for those jurisdictions that were able to provide the information for the years 2018 to 2023 in relation to returns expected, and for the years 2022 and 2023 in relation to returns received. The number of jurisdictions for which data was available is shown in the table.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.22 Rate of returns received on-time: CIT, D.23 Rate of returns received on-time: PIT, D.24 Rate of returns received on-time: PAYE, and D.25 Rate of returns received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
Table 4.8. shows the evolution of on-time filing rates over the 10-year period 2014 to 2023. Due to the available time series this is only expressed as a percentage of returns expected. On average, the rates have remained broadly static over this period, although the underlying data for on-time filing shows significant variation in the evolution of on-time filing rates between jurisdictions. It should be noted that the table only takes into account information from jurisdictions that were able to provide data for both years 2014 and 2023, which explains the differences in 2023 averages shown in Table 4.7. and Table 4.8.
Returns received on-time as a percentage of returns expected
Note: The table shows the average on-time filing rates for those jurisdictions that were able to provide the information for the years 2014 and 2023. The number of jurisdictions for which data was available is shown in parenthesis. For VAT, the table compares information for the years 2016 and 2023, as the underlying question was changed with ISORA 2018. For PIT, data for Romania has been excluded from the calculations as it would distort the average ratios.
Sources: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.22 Rate of returns received on-time: CIT, D.23 Rate of returns received on-time: PIT, D.24 Rate of returns received on-time: PAYE, and D.25 Rate of returns received on-time: VAT, http://isoradata.org (accessed on 1 October 2025), OECD (2017), Tax Administration 2017: Comparative Information on OECD and Other Advanced and Emerging Economies, Table A.6., https://doi.org/10.1787/tax_admin-2017-en, and OECD (2019), Tax Administration 2019: Comparative Information on OECD and Other Advanced and Emerging Economies, Table D.12., https://doi.org/10.1787/74d162b6-en.
Figure 4.1 takes a different look at the on-time filing performance (expressed as a percentage of returns received) by illustrating the distribution of individual jurisdiction data for each tax type. The boxes depict the 2nd and 3rd quartile (i.e. the central 50% of jurisdictions) with the middle line indicating the median value. This shows that:
The median values for PIT and CIT are well above the average values shown in Table 4.7. (around 5 percentage points), while the median values for PAYE and VAT are similar to the averages;
The median values for CIT, PAYE and VAT are very similar, in the range of 91 to 93%;
There is a greater distribution with more outliers for PIT and CIT.
While this requires more analysis, it could mean that the above observation that lower on-time filing rates for CIT may be a result of complexity in the CIT system is only true for a number of jurisdictions. In addition, the high median value for PIT of 96% might be an indication of less complexity in the PIT system but also a result of the positive impact of prefilling regimes for PIT.
Returns received on-time as a percentage of returns received
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.22 Rate of returns received on-time: CIT, D.23 Rate of returns received on-time: PIT, D.24 Rate of returns received on-time: PAYE, and D.25 Rate of returns received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
The variation of on-time filing rates (expressed as a percentage of returns received) can be seen in Figure 4.2 which shows the range of on-time filing rates across major tax types by jurisdiction. For a number of jurisdictions this range is significant.
Given the impact on compliance rates, many tax administrations are applying behavioural insight techniques to try and encourage more timely and accurate filing, and they report that ‘nudges’ at key points in the filing process can increase the timeliness of filing. Not only is this improving compliance rates, but it is also freeing up resources that can be used elsewhere. Chapter 6 contains further information on the use of behavioural insights.
Returns received on-time as a percentage of returns received
Note: The figure shows for each jurisdiction the range in on-time filing performances in 2023 across the four tax types: PIT, CIT, Employer withholding and VAT (where applicable). It only includes jurisdictions for which information was available for at least two tax types.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.22 Rate of returns received on-time: CIT, D.23 Rate of returns received on-time: PIT, D.24 Rate of returns received on-time: PAYE, and D.25 Rate of returns received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
Payment of tax constitutes one of the most common interactions between taxpayers and tax administrations, especially for businesses that are typically required to regularly remit a variety of payments covering both their own tax liabilities and those of their employees. Administrations continue to make progress in increasing the range of e-payment options available to taxpayers and to increase their use. This progress not only lowers the cost to the administration, it can also increase on-time payments and reduce the number of payment arrears cases by providing improved access and a better payment experience. One significant development is the growth of payment facilities being built into the natural systems of taxpayers. This is making payment more seamless for taxpayers, as they can use their existing banking or accounting software to make payments.
The vision of the NTA is to create a future where tax assessment and collection occur automatically and in real-time.
The administrative burden for entrepreneurs to pay VAT is high, and the way in which VAT is levied and collected is not always part of the taxpayer ecosystem. This may result in reduced compliance. Carousel fraud is also a risk if the tax administration has insufficient insight into the VAT paid and received by companies. At the same time, new payment and financial services are growing rapidly, creating a need for the tax administration to evolve.
To address these challenges, the NTA is working on a tax splitter, which is where the taxpayer immediately pays the VAT element of a transaction to the tax administration. By using distributed ledger technologies in each transaction, the VAT payment goes directly to the tax administration and the rest to the entrepreneur. This gives the tax administration access to an audit trail, while the entrepreneur maintains data sovereignty.
For more information, please see here: https://www.government.nl/topics/taxation-and-businesses/documents/reports/2024/06/30/a-first-step-to-real-time-taxation (accessed on 1 October 2025).
Source: The Netherlands (2025).
Traditionally, and similar to on-time return filing, the ISORA survey measured on-time payment by putting the value of payments received on-time in relation to the total value of payments due. But, here as well, ISORA 2023 introduced a new data point allowing the on-time payment rate to also be measured in relation to the total value of payments received. On-time payment rates for those administrations able to supply information by tax type are summarised in Table 4.9. and Table 4.10.
Table 4.9. shows that on-time payment rates (expressed as a percentage of payments due) are increasing again following the pandemic related reduction that can be observed for years 2020 and 2021, and are close to their pre pandemic values. As expected, on-time payment rates expressed as a percentage of payments received are noticeably higher.
Note: The table shows the average on-time payment rates for those jurisdictions that were able to provide the information for the years 2018 to 2023 in relation to the value of payments due, and for the years 2022 and 2023 in relation to the value of payments received. The number of jurisdictions for which data was available is shown in the table. Data for Poland regarding payments due has been excluded from the calculations as it would distort the average ratios.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.36 Rate of payments received on-time: CIT, D.37 Rate of payments received on-time: PIT, D.38 Rate of payments received on-time: PAYE, and D.39 Rate of payments received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
Table 4.10. illustrates the changes in average on-time payment rates (expressed as a percentage of payments due) over the 10-year period 2014 to 2023. While there is only limited individual jurisdiction data for this period, it shows that the rates have slightly declined across all tax types. However, looking at the data by jurisdiction it becomes obvious that the number of jurisdictions with decreasing rates and those with increasing rates are almost split evenly.
Payments received on-time as a percentage of payments due
Note: The table shows the average on-time filing rates for those jurisdictions that were able to provide the information for the years 2014 and 2023. The number of jurisdictions for which data was available is shown in parenthesis. Data for Costa Rica has been excluded from the calculations as it would distort the average ratios.
Sources: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.36 Rate of payments received on-time: CIT, D.37 Rate of payments received on-time: PIT, D.38 Rate of payments received on-time: PAYE, and D.39 Rate of payments received on-time: VAT, http://isoradata.org (accessed on 1 October 2025), and OECD (2017), Tax Administration 2017: Comparative Information on OECD and Other Advanced and Emerging Economies, Table A.9, https://doi.org/10.1787/tax_admin-2017-en.
Figure 4.3 looks at the on-time payment performance (expressed as a percentage of payments received) from a different angle. By illustrating the distribution of individual jurisdiction data for each tax type in form of a box and whisker plot it well illustrates the positive effects of PAYE withholding regimes on on-time payment performance as:
At 96% the median value for PAYE is well above the median values for CIT and VAT (92% each) as well as PIT (87%); and
The central 50% of jurisdictions (i.e. the box depicting the 2nd and 3rd quartile) is very narrow between 93 and 99%.
In addition, the figure also confirms the lower PIT on-time payment performance that was noted above. However, comparing PIT and CIT on-time payment performance there does not seem to be much of a difference as regards the central 50% of jurisdictions, despite the different median values.
While the previous tables and figure looked at aggregate data, Figure 4.4 shows the range of on-time payment performance for individual jurisdictions. It illustrates a significant gap in on-time payment across the main tax types for a number of jurisdictions, in some cases around 30 percentage points or above.
Payments received on-time as a percentage of payments received
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.36 Rate of payments received on-time: CIT, D.37 Rate of payments received on-time: PIT, D.38 Rate of payments received on-time: PAYE, and D.39 Rate of payments received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
Payments received on-time as a percentage of payments received
Note: The figure shows for each jurisdiction the range in on-time payment performances in 2023 across the four tax types: PIT, CIT, Employer withholding and VAT (where applicable). It only includes jurisdictions for which information was available for at least two tax types.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Tables D.36 Rate of payments received on-time: CIT, D.37 Rate of payments received on-time: PIT, D.38 Rate of payments received on-time: PAYE, and D.39 Rate of payments received on-time: VAT, http://isoradata.org (accessed on 1 October 2025).
Future editions of this report will continue to track and analyse these trends, and recovering and increasing on-time payment rates will no doubt remain an area of focus for administrations given the amounts of revenue involved, with many tax administrations reporting investing additional resources in this area, to make payments easier and more in real time.
Given the underlying design of the major taxes administered (i.e. PIT, CIT and VAT), some element of over-payment by a proportion of taxpayers is unavoidable. Excess tax payments represent a cost to taxpayers in terms of “the opportunity cost”, which is particularly critical to businesses that are operating with tight margins where cash flow is paramount. Any delays in refunding legitimately overpaid taxes may therefore result in significant “costs” to taxpayers.
Table 4.11. shows the different treatment of VAT refunds, and highlights that the majority of administrations pay out refunds immediately. This is helpful to business, but tax administrations need to continue to be cognisant of fraud risks. Tax regimes with a high incidence of tax refunds are particularly attractive to fraudsters (especially via organised criminal attacks) necessitating effective risk-based approaches for identifying potentially fraudulent refund claims.
Source: ADB, CIAT, IOTA, IMF, OECD, International Survey on Revenue Administration, Table A.72 Treatment of most approved VAT refunds, http://isoradata.org (accessed on 1 October 2025).
The STA has explored data-driven approaches to review the VAT credit refunds process. It has the following features:
Pre-management: This focuses on enhancing services through innovating digital infrastructure. A new model has been developed which identifies eligible taxpayers (among 15 million general taxpayers nationwide), facilitating automatic reminders for VAT credit refund applications. Over 85% of refund application data is pre-filled by the system, saving time for taxpayers. Additionally, 59 risk indicator models have been launched to scan taxpayers with VAT credits by category, recording risks in a dedicated database.
In-process review system: This includes a "data-driven review" module that gathers the necessary tax-related information for review, enhancing efficiency and accuracy. It also features an "intelligent interception" function that scans taxpayers daily based on risk ratings. A "precise response" strategy has also been adopted, with medium and high-risk taxpayers undergoing extra checks.
Ex-post supervision: A risk prevention and control system has been implemented. First, dynamic tracking and analysis is conducted. Continuous monitoring of refunded taxpayers is carried out in real-time, with the database being regularly updated, and a chained risk scanning model has been established. Second, random and targeted spot checks are also conducted, taking place more frequently for industries with relatively higher risks or those that trigger numerous risk indicators despite the system assigning a lower risk level. Third, traceable control is implemented, and data analysis is used to trace VAT credit refund risk cases to update risk indicators, improving the model and enhancing efficiency.
Source: China (People’s Republic of) (2025).
References
[1] OECD (2022), Tax Administration 2022: Comparative Information on OECD and other Advanced and Emerging Economies, OECD Publishing, Paris, https://doi.org/10.1787/1e797131-en.
[3] OECD (2019), Tax Administration 2019: Comparative Information on OECD and other Advanced and Emerging Economies, OECD Publishing, Paris, https://doi.org/10.1787/74d162b6-en.
[2] OECD (2017), Tax Administration 2017: Comparative Information on OECD and Other Advanced and Emerging Economies, OECD Publishing, Paris, https://doi.org/10.1787/tax_admin-2017-en.