1. Presentations of the Launch of the
Revenue Statistics in Asian and Pacific Economies 2020
Publication
Wednesday 23 July
8:00 - 9.00am Paris time /2:00-3.00pm Manila time/ 6:00-7.00pm Fiji time

2. David Bradbury, Head of Tax Policy and
Statistics Division, Centre for Tax Policy &
Administration (OECD)
& Michelle Harding, Head of Tax Data and
Statistical Analysis Unit, Centre for Tax Policy &
Administration (OECD)

3. Revenue Statistics in Asian and
Pacific Economies 2020
Revenue developments in Asian and Pacific economies
David Bradbury and Michelle Harding
OECD Centre for Tax Policy & Administration
Launch webinar
23 July 2020

4. Revenue Statistics in Asian and Pacific Economies
• Detailed, harmonised data on the revenues of national governments
• A key tool for policymakers and analysts, supporting reform, international
cooperation and dialogue
• In 2020, the publication covers 21 Asian and Pacific
economies, including the following four new countries:
- Bhutan, People’s Republic of China, Mongolia & Nauru
• An important baseline to analyse COVID-19 impact
on domestic resource mobilisation in Asia and Pacific
• A special feature, co-written by the OECD and ADB,
discusses the importance of tax administrations and
tax policy in navigating different phases of the crisis
https://oe.cd/revenue-statistics-in-asia-and-pacific

5. In 2018, tax-to-GDP ratios ranged from 11.9% in Indonesia to
35.4% in Nauru
Tax-to-GDP ratios including and excluding social security contributions, 2018
Note: The tax-to-GDP ratio for China does not include revenue from social security contributions (SSCs) as detailed data were not available. The OECD Secretariat
estimates SSCs to be approximately 4.0% of GDP in 2018 based on publicly available data from China's Ministry of Human Resources and Social Security.
35.4 34.3
32.7 31.4 30.4 29.8 28.5 28.4
25.8
24.0 23.7 23.1
18.2 18.1 18.0 17.5 17.2 17.0 16.8
13.2 12.5 12.3 12.1 11.9
0
5
10
15
20
25
30
35
40
% of GDP
Tax-to-GDP ratio Tax-to-GDP excluding SSCs

6. Two-thirds of economies increased their tax-to-GDP ratios
between 2017 and 2018
Changes in tax-to-GDP ratios between 2017 and 2018 by main type of tax
-3
-2
-1
0
1
2
3
4
5
6
7
p.p. change
Taxes on income, profits and capital gains Value added taxes Other taxes on goods and services Other taxes Total tax revenue

7. More than half of the economies have increased their
tax-to-GDP ratios over the last decade
Changes in tax-to-GDP ratios, between 2007 and 2018
10.6
7.0
4.9
3.8 3.8 3.6 3.2 2.5 1.9 1.5 1.4 0.7 0.4 0.1
-0.3 -0.3 -1.0 -1.0 -1.2
-2.3
-4.3
-8.6 -9.3
-15
-10
-5
0
5
10
15
p.p. change
Note: Data for Nauru are only available from 2014 onwards and therefore excluded from this graph.

8. Most Pacific Island economies rely on taxes on goods and
services; Asian countries have more mixed revenue sources
Tax structures as % of total tax revenue, 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 Social security contributions (SSC) 5111 Value added taxes
Other taxes on goods and services 1100 Taxes on income, profits and capital gains of individuals
1200 Taxes on income, profits and capital gains of corporates Unallocable between 1100 and 1200
Other taxes
Main sources of revenues: Taxes on goods and services Income taxes SSCs
Note: Data for China are not included in this graph as detailed data on revenue from social security contributions were not available.

9. Among income taxes, CIT contributes more revenues in Asia
while PIT contributes more for Pacific economies
Revenues from corporate income tax (CIT) and personal income tax (PIT), 2018
0
10
20
30
40
50
60
70
80
90
100
% of total income tax revenues
Unallocable between personal and corporate income tax Personal income tax Corporate income tax

10. Considerable scope remains to expand environmentally
related taxation in the region
Environmentally related tax revenues by main tax base, 2018
0
1
2
3
4
5
6
7
8
9
% of GDP
Transport Energy Pollution Resource
Note: Tokelau does not levy environmentally related tax revenue. It has not been possible to identify environmentally related tax revenue for the remaining
countries due to data availability issues.

11. Grants and property income accounted for the majority of
non-tax revenues for Asian and Pacific economies
Structure of non-tax revenue, 2018
0
20
40
60
80
100
%
Grants Rents and royalties Interests and dividends
Other property income Sales of goods and services Fines, penalties and forfeits
Miscellaneous and unidentified revenue

12. Summary of the key findings
• Tax-to-GDP ratios in the region vary widely:
- From 11.9% in Indonesia to 35.4% in Nauru
- Most Asian countries have ratios below 20%, while most Pacific economies above 23%
• Two-thirds of economies increased their tax-to-GDP ratios between 2017
and 2018, mainly by increasing VAT and other taxes on goods and services
• Tax structures across the region are diverse:
- Pacific economies rely more on taxes on goods and services, while Asian countries rely
either on taxes on income taxes or goods and services. Japan is heavily reliant on SSCs.
- CIT contributes more revenues in Asia while PIT contributes more for Pacific economies.
- VAT is a particularly important and increasing source of revenues in the Pacific.
- Environmentally related taxes - particularly energy taxes - are used throughout Asia-
Pacific, but levels are often low with scope remains to expand these to boost revenues
• The composition of non-tax revenues varies among the 12 countries with
available data, but grants and royalties accounted for the majority in 2018

13. Source: OECD (2020), Global Revenue Statistics Database.
Tax-to-GDP ratios
worldwide, 2017
Detailed, comparative
information on tax levels,
tax structure, and changes
over time for 100+
countries according to a
common classification
Four annual publications
(OECD, Latin America & the
Caribbean, Africa, Asia &
Pacific) & online datasets; a
Global Database; an
interactive tool (“Compare
your Country”); and regional
communities of practice
Revenue Statistics provides a
key tool for policymakers &
analysts, supporting reform,
international cooperation &
dialogue

14. Go Nagata, Public Management Specialist,
Governance Thematic Group, Sustainable
Development and Climate Change Department
(ADB)

15. SPECIAL ANALYSIS OF TAX POLICY AND
ADMINISTRATION RESPONSES TO COVID-
19 IN ASIA-PACIFIC
REVENUE STATISTICS IN ASIAN
AND PACIFIC ECONOMIES
LAUNCH OF THE 2020 EDITION – 23 JULY
2020
Mr. Go NAGATA
Public Management Specialist (Taxation)
Asian Development Bank
23 July 2020

16. Source: Asian Development Outlook database.
All 2020 forecasts are downgraded; more open, tourism-
dependent, and outbreak-affected economies will be hardest hit
1
2020 2021 2020 2021
ADO ADOS ADO ADOS ADO ADOS ADO ADOS
East Asia 2.0 1.3 q 6.5 6.8 p South Asia 4.1 -3.0 q 6.0 4.9 q
Hong Kong, China -3.3 -6.5 q 3.5 5.1 p Bangladesh 7.8 4.5 q 8.0 7.5 q
People’s Rep. of
China 2.3 1.8 q 7.3 7.4 p India 4.0 -4.0 q 6.2 5.0 q
Republic of Korea 1.3 -1.0 q 2.3 3.5 p Pakistan 2.6 -0.4 q 3.2 2.0 q
Taipei,China 1.8 0.8 q 2.5 3.5 p
Central Asia 2.8 -0.5 q 4.2 4.2
Southeast Asia 1.0 -2.7 q 4.7 5.2 p Azerbaijan 0.5 -0.1 q 1.5 1.2 q
Indonesia 2.5 -1.0 q 5.0 5.3 p Kazakhstan 1.8 -1.2 q 3.6 3.4 q
Malaysia 0.5 -4.0 q 5.5 6.5 p
Philippines 2.0 -3.8 q 6.5 6.5 The Pacific -0.3 -4.3 q 2.7 1.6 q
Singapore 0.2 -6.0 q 2.0 3.2 p Fiji -4.9 -15.0 q 3.0 -0.7 q
Thailand -4.8 -6.5 q 2.5 3.5 p
Papua New
Guinea 0.8 -1.5 q 2.8 2.9 p
Viet Nam 4.8 4.1 q 6.8 6.8
Developing Asia 2.2 0.1 q 6.2 6.2
Excluding
NIEs 2.4
0.4 q
6.7
6.6 q
p = upgraded forecast, q = downgraded forecast, no sign = unchanged.

17.  Revenue declines reflect combination of
 slowdown of economic activity, and
 tax and non-tax incentive and relief
measures
 Tax measures include
 incentives to businesses (i.e., withholding
tax, corporate income tax, tax deduction
for health insurance and debt
restructuring); and
 relief to individuals (i.e., income tax for
frontline medical workers)
 Small island economies such as Fiji are
severely affected from halt to tourism.
Estimated Decline in Revenues Across Selected
Developing Economies in Asia
2
Source: Estimates based on 2020 Budget and Revised Budget figures and other Government reports.

18. I. Crisis Response Phase
ADB supports DMCs in the following:
 For Tax Policy
 Take holistic approach on tax relief measures to defer, lower or temporarily waive taxes to
stabilize economy, supported by a clear communication policy, and link it to the medium-term
revenue strategy and overall the medium-term fiscal framework
 Promote VAT on digitalized and cross-border transactions in collaboration with OECD (within
the scope of BEPS Action 1)
 For Tax Administration
 Ensure that the operational risks of tax administration are well-managed, including its core
business processes and strict compliance with office policies on health and hygiene
 Deliver taxpayer service to ease the business cashflow of taxpayers through the prioritization
of VAT refunds and deferral of tax filing and payment procedure
 Enhance compliance risk management, using information through EOIR (exchange of
information on request) and AEOI (automatic exchange of information), to monitor emerging
risks such as VAT fraud and identity theft during the recession
Tax policy and Administration responses (1)
3

19. II. Bounce-back Phase
 For Tax Policy
 Support countries in identifying key considerations including form, timing and sequencing
related to exit strategy for tax incentives with a focus on tax restructuring and fiscal
consolidation
 Due to the negative impact of COVID-19 on the economy, the income gap has widened. Tax
policy should strengthen income redistribution function to ease this gap.
 Supporting countries’ sustainable development efforts with broadened tax measures
through (i) tax incentive review in terms of effectiveness and efficiency, (ii) property tax policy
and administrative reform with optimizing property value assessment, and (iii) environment tax
including green tax and energy tax.
 To ensure fairness and trust in tax policy, ADB, in collaboration with OECD will help DMCs
strengthen policy and regulatory frameworks to implement anti-BEPS measures including
Income taxation on digital companies under the G20 and OECD initiative, and EOIR and
AEOI to improve tax transparency and compliance.
 For Tax Administration, Digital transformation is part of the drive to innovate to increase
productivity growth. Similarly, digital transformation will also help tax administrations by promoting
effective, timely, and corruption-free delivery of public services to support greater accountability.4
Tax policy and Administration responses (2)

20. Focus Key observations and findings
Use of
e-services
Use of
mobile apps
Emerging
digitalisation
developments
• Early signs of the deployment of some new
innovative technologies (e.g. chatbots, AI, Satellite
imagery/drone).
• Some major technology developments focused on
improving taxpayers’ compliance:
 Online cash register systems (Korea).
 E-invoicing systems (e.g., PR China, Korea,
Mongolia)
 Real time employee wage income reporting and
withholding regimes (i.e. Australia and New
Zealand).
Tax policy and Administration responses (3) : Needs for greater investments
Digitalization Developments/ Use of Innovative Technologies in Asia and
the Pacific
Source: A Comparative Analysis of Tax Administration in Asia and the Pacific: 2020 Edition
5

21. Outline of ADB Vision and Action Plan
Action Plan
 Aligned with the SDGs and G20 initiatives, ADB is committed to supporting and promoting
DRM and ITC among its DMCs in close collaboration with other development partners.
 This will support DMCs to (i) meet a minimum of 15% tax yields that are stable and
predictable, and (ii) fully benefit from adhering to international tax cooperation agreements
that can help in further boosting revenues by reducing tax evasion and tax avoidance.
 As a part of the Action Plan, the regional hub will deliver knowledge products on development
impacts and investment needs for revenue mobilization and tax transparency.
Vision
ADB to support DMCs in establishing an effective regional hub on Domestic Resource
Mobilization (DRM) and International Tax Cooperation (ITC) in Asia and the Pacific.
Public Communication
Present the vision and action plan in a panel session on DRM and ITC in the second stage
of the forthcoming ADB annual meeting in September 2020 [tbc].
6