Tax Digitalization and Taxpayer Compliance: A Systematic Literature Review of Impacts, Determinants, and Barriers

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Published: Mar 4, 2026
Keywords:
Tax Digitalization, Tax Compliance, E-government, Technology Adoption

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Erikson Wijaya
Ministry of Finance, Indonesia
Lela Luthfiana Ulfa
Ministry of Finance, Indonesia

Abstract

As tax administrations globally accelerate digital transformation, the relationship between tax digitalization and taxpayer compliance remains complex and context-dependent. This study employs a Systematic Literature Review (SLR) to synthesize empirical evidence regarding the impact, adoption determinants, and barriers of digital tax systems. Following PRISMA 2020 guidelines, 45 Scopus-indexed articles published between 2015 and 2025 were selected and analyzed. The synthesis reveals a predominantly positive impact of digitalization on compliance, driven by two primary mechanisms: the facilitation effect (reducing compliance costs through simplified reporting) and the deterrence effect (enhancing fraud detection via data integration). However, the study finds that technological implementation alone does not guarantee success; adoption is heavily contingent upon "psychological contracts," specifically trust in authority, tax fairness, and perceived ease of use. Furthermore, the review identifies significant structural barriers—notably the digital divide, human capital deficits, and data privacy concerns—that can undermine efficiency gains or trigger resistance. The study concludes that while digitalization is a potent tool for revenue mobilization, sustainable compliance requires a "human-centric" policy approach that addresses infrastructural gaps and fosters taxpayer trust.

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Vol. 1 No. 1 (2026): Current Issue on Tax Administration
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