This paper analyses the dynamic effects of interventions on small businesses’ tax compliance in Indonesia. Specifically, it examines whether the deterrence intervention produce sustainable and long-lasting effects rather than just immediate outcomes compared to non-deterrence interventions. We estimate the long-term impact of these interventions and resend the initial treatment letters one year after our initial trials. Our findings show that deterrence letters lead to a significant increase in tax payment rates and have a more enduring impact on the likelihood of timely filing during the observation periods. Additionally, in our repeated experiments, we observe a significant reduction in the average treatment effects across all interventions; however, deterrence letters continue to substantially increase the likelihood of tax payment.

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