The Impact of Digital Tax Administration on Taxpayer Compliance and Revenue Performance

Abstract

The rapid advancement of digital technology has transformed tax administration systems across the globe. This study examines the impact of digital tax administration on taxpayer compliance and government revenue performance in Indonesia. Employing a mixed-methods approach combining quantitative analysis of secondary data from the Directorate General of Taxes (DGT) spanning 2018–2023, with qualitative interviews of 30 tax officials and 50 individual taxpayers, this research identifies key factors mediating the digital transition. Results indicate that the implementation of e-Filing, e-Billing, and Core Tax Administration System (CTAS) significantly increased compliance rates by 18.4% and improved revenue realization by 23.7% over the study period. The findings also reveal that taxpayer digital literacy and system usability are critical determinants of voluntary compliance. The study concludes that sustained investment in digital infrastructure, taxpayer education programs, and transparent governance frameworks is essential for optimizing the benefits of digital tax transformation. Policy recommendations include integrating behavioral nudge strategies into digital interfaces and expanding broadband access to underserved regions.

Keywords: Digital Taxation, Taxpayer Compliance, Tax Administration, Revenue Performance, e-Filing