Challenges of Digital Tax Administration Transformation in Indonesia

Siti Kurnia Rahayu and Andri Kusdianto

A chapter in Business and Management Annual Volume 2023 from IntechOpen

Abstract: The purposes of this chapter are to identify how digital transformation can enhance the efficiency, transparency, and cost-effectiveness of tax administration, leading to increased tax revenue and reduced compliance costs in Indonesia. The results of study indicate that the digital transformation of tax administration in Indonesia is currently in the acceleration stage. The tax authority (DGT) has set a policy for digital transformation in the tax administration system to reduce compliance costs and improve administrative process efficiency, as well as optimize budgetary functions. DGT has developed big data processing from taxpayers and external parties for analysis purposes used by authorities for compliance risk management, business intelligence, surveillance, audit, and more. The challenges of digital transformation in tax administration in Indonesia are the integration of information system applications in DGT. Another challenge is the difference in interests between authorities, technological platform differences, and the willingness level of each authority toward the adoption of integrated automation processes in all sectors in Indonesia. Therefore, it is crucial to build collaboration in the development of an integrated information system and strategic adjustments to business processes. National enterprise architecture-related policies are highly needed to achieve strategic digital transformation objectives.

Keywords: digital tax administration transformation; compliance risk management; business intelligence; big data analytics; directorate general of taxes (DGT) (search for similar items in EconPapers)
JEL-codes: M00 M2 (search for similar items in EconPapers)
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.intechopen.com/chapters/86942 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:306815

DOI: 10.5772/intechopen.111458

Access Statistics for this chapter

More chapters in Chapters from IntechOpen
Bibliographic data for series maintained by Slobodan Momcilovic ().