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Amid high debt servicing costs, low fiscal space and major financial requirements to implement the Sustainable Development Goals, the digitalization of tax administrations has much potential to enhance tax compliance, expand the tax base and increase the efficiency and effectiveness of domestic resource mobilization .  This paper describes five major digital taxation tools – e-filing, e-invoicing, e-withholding taxes, point of sale systems, and track and trace systems – in Asia and the Pacific. Because most of these digital tools are very recent and in early stages of development, the paper relies mostly on case study evidence on the adoption of these new tools by selected tax administrations in the region. Through the case study evidence, the paper identifies challenges to scale up digital solutions and opportunities to address them. The latter include the adoption of a comprehensive framework of data security and privacy to protect taxpayer information, training programs and public awareness campaigns, stakeholder engagement in the design of software solutions, and special consideration and policies to include informal businesses.

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