Global Trends in Electronic Tax Filing and Payment Across Income Groups
A recent World Bank study highlights the growing adoption of electronic tax filing and payment systems worldwide, though progress varies significantly across income groups. The analysis, based on the B-READY 2024 report, categorizes economies into high, upper middle, lower middle, and low-income groups, revealing both advancements and gaps in digital tax administration.
In high-income countries, such as Estonia, Singapore, and Hungary, electronic filing and payment are nearly universal. Most firms in these economies not only file taxes online but also have direct access to e-payment options through tax portals. This reflects advanced digital infrastructure and strong policy frameworks supporting compliance.
Upper middle-income nations, including Costa Rica, Georgia, and Peru, also show high participation in electronic tax filing. However, in several cases, e-payment systems are only partially available, restricted to specific taxes or categories of taxpayers. This indicates a transitional phase, where digital reforms are in progress but not yet fully integrated.
In lower middle-income countries, adoption is more uneven. Economies like Vietnam and the Kyrgyz Republic demonstrate high engagement in e-filing, while others, such as Nigeria and West Bank and Gaza, show significantly lower uptake. Limited infrastructure and fragmented digital platforms often hinder widespread access.
Low-income nations face the steepest challenges. Rwanda stands out as a leader with strong participation, but in most other countries, such as Chad and the Central African Republic, electronic systems remain underdeveloped or absent. This underscores a digital divide that directly impacts tax compliance and government revenue collection.
Overall, the study emphasizes that while electronic tax systems are expanding globally, ensuring universal availability of e-payment directly on tax portals remains a key priority. Bridging this gap is crucial for improving efficiency, transparency, and inclusivity in tax administration worldwide.
