Tax Administration System Research Articles

Perspectives on reforming the tobacco tax administration system in Bangladesh to enhance public health

BackgroundTaxation is the most cost-effective instrument to regulate the consumption of tobacco products. However, weak tax administration can compromise the effectiveness of taxation. This paper aimed to understand the process...

Цифровізація та глобалізація системи адміністрування податків як драйвер інноваційного розвитку

The aim of the article is to identify the problems and prospects of digitization and globalization of services in the tax administration system as components of drivers of innovative development. It is substantiated that under the influence of military operations, internal and external factors, there has been a determination of awareness of the role of the digital economy as a tool for globalization, which defines the choice of such development priorities as investment and innovation cooperation and digitization of social relations at the macro and micro levels. The formation of the information society on the basis of digitization will ensure the subordination of economic growth to the qualitative parameters of social and economic development, because further progress will be determined not so much by the production of goods as by the expanded use of information in the context of digitization. The main problems of digitization and globalization of tax administration in Ukraine are identified and systematized. Among them, the main ones are: the ongoing war, unpredictable changes in government policy, and other risks of long-term digital technology projects; corruption; resistance to change on the part of government officials, employees of the State Tax Service and taxpayers; lack of information work on the benefits of digitization and globalization with taxpayers and the public, as well as specialized training among employees of the State Tax Service; shortage of qualified tax officers, as well as specialists in the field of digital technologies; concentration of taxation not on the identification of reserves for tax incentives, but on the collection of taxes; technological risks of malfunction or failure in new systems, especially in the early stages of their implementation; cybercrime risk; bureaucratic procedures and imperfection of legislation on digital technologies, personal data of citizens and the implementation of international legislation. It is proved that the vector of the strategy for solving the existing problems in tax administration should go through digitization, digitalization and computerization of relations between the State and citizens, taking into account the modern global experience of the developed countries of the world in this area. The strategic priorities that will ensure the development of digitization and globalization of tax administration are presented in a systematized form, which, in turn, will have a positive impact on the innovative development of the country as a whole. It is substantiated that the main ways to ensure the development of digitization and globalization of tax administration are: 1. Improvement of national legislation and implementation of international legislation on digitization and globalization of tax relations. 2. Integration of international standards of digital technologies and ensuring the safety and illegal non-distribution of personal data of citizens. 3. Fighting corruption at all levels of government while restarting the judiciary to protect rights and increase taxpayers’ confidence. 4. Formation of a comprehensible strategy and tactics for the development of digitization and globalization of tax administration, harmonious with systemic international trends. 5. Gradual reduction of the tax burden and creation of a system of computerized independent clear tax control. 6. Building public trust and support, as well as cooperation with international organizations and businesses. 7. Promoting the development of tax and digital culture among citizens, especially children. 8. Clear and balanced reform of the State Tax Service and other regulatory authorities to improve the tax system of Ukraine and ensure the stability of the country’s finances. 9. Formation and implementation of a set of tax incentives to expand business activity. 10. Anti-corruption measures and openness of the work of the State Tax Service. 11. Continuous training and development of the State Tax Service staff. 12. Providing conditions for digitization and digitalization of relations between the State and citizens. The presented problems and proposals of digitization and globalization of the tax administration system create the basis for further research in the direction of improving the methodology and organization of the tax system.

ЦИФРОВАЯ ТРАНСФОРМАЦИЯ КАК ОСНОВА МОДЕРНИЗАЦИИ НАЦИОНАЛЬНОЙ НАЛОГОВОЙ СИСТЕМЫ

The article discusses the main functions and services of tax administration, as well as the possibilities of their modernization as a result of the introduction of digital technologies. It has been proven that digital tax transformation is a continuous process that requires the implementation of strategic plans, pilot programs, as well as attracting large investments not only for the tax administration system, but also for the e–government project. The roadmap for digitalization of tax administration should not be limited to technological progress of the federal tax service alone, but should also apply to the financial system of the state as a whole.

Проблемні аспекти та вдосконалення майнового оподаткування в Україні

The aim of the article is to study the problematic aspects of property tax administration and identify approaches to its improvement. It is found that property tax revenues in Ukraine are at a low level relative to GDP, their share in GDP does not exceed 1%, while the level of this ratio in the EU Member States is on average 2.2%. During the period under analysis, there is a tendency to a slow reduction in the share in GDP of both local taxes and fees, as well as property tax, which makes local budgets dependent on transfers from the State budget and the shares of national taxes and fees assigned to them. There is a steady tendency to reduce the share of property tax in the tax revenues of local budgets of Ukraine in recent years, which is associated with the full-scale war in Ukraine and the tax benefits for the payment of property taxes adopted by the Verkhovna Rada of Ukraine. It is determined that the largest share in the structure of property taxes falls on land payments, while the share of transport tax is very low due to the limited list of objects that are liable to taxation. The main problems of property tax regulation in Ukraine have been allocated as follows: insufficient level of effectiveness in the administration of real estate tax, imperfect process of determining the property tax base, unreasoned establishment of property tax benefits, centralized administration of property taxes. Different approaches to tax administration and foreign experience on this issue are analyzed. The expediency of transferring the powers to administer property taxes to local self-government bodies in order to strengthen the financial capacity of communities and reduce public expenditures is substantiated. It is defined that local self-government bodies represent the most interested subject in the formation of a self-sufficient system of local finances, and tax service bodies have insufficient resources and have low motivation to administer property taxes. The problems for local authorities in case of obtaining powers to administer property tax are outlined. A new model of property tax administration has been proposed, in which local self-government bodies exercise the entire set of powers to administer property taxes. Directions for improving the property tax administration system in Ukraine are also proposed.

Analysis of the Effect of the Tax Electronic System on Tax Paying Behavior

In 1992, Mongolia adopted a set of tax laws, defining the rights and obligations of tax authorities and taxpayers, and creating a new legal framework for tax relations. When transitioning to the new tax system, the system for taxpayers to determine self-assessment tax rates was introduced for the first time. Mongolia switched to the "Integrated Tax Administration System" or electronic system in 2021. According to Business registry statistics, a total of 220,000 enterprises were registered in 2023. However, only 35 percent of the registered enterprises did not submit tax reports and did not pay the reported taxes on time, indicating that tax compliance is not satisfactory among enterprises. Unfortunately, little has been studied in our country on tax compliance behavior and the factors affecting it. This study aims to analyze the effect of the tax electronic system on tax compliance behavior. Concerning the framework of the Theories of Reasoned Action and Planned Behavior an intention to pay taxes was considered as a mediating factor in the relationship of the electronic tax system and tax compliance behavior. The analyses confirmed that the tax electronic system influences tax compliance behavior through the intention to comply with taxes. Hence, motivation to increase the use of the tax electronic system may improve tax compliance behavior.

Система електронного адміністрування податків в Україні в умовах глобальної цифровізації

At the present stage of economic development, when technologies are actively transforming all spheres of life, the introduction of electronic tax administration is an important factor in ensuring the stability and development of the country. Effective collection and processing of tax information is of utmost importance to ensure financial discipline, efficiency and the ability of the State to finance social and economic programs, ensuring seamless operation. The use of advanced information technologies in this area opens up new prospects for increasing efficiency, reducing administrative difficulties and improving interaction between government agencies and taxpayers. Therefore, the purpose of this article was to study the issues of the theoretical foundations of the organization of the electronic tax administration system, analyze its development and effectiveness of its use in Ukraine in the context of digitalization, research of global trends and developments and outlining development prospects in the long run. To achieve this goal, approaches to the interpretation of the concept of electronic taxation, the reasons for the development of this type of tax administration, the advantages of its use for taxpayers and tax authorities were considered. The purpose and efficiency of such implemented services and applications as the electronic cabinet, the service for submitting electronic reports and documents, the system of electronic administration of VAT and the sale of fuel, the «Pulse» service, such application as «My Tax Service», are also analyzed. The dynamics of the growth of users of the electronic cabinet is analyzed; the number of documents submitted, including by type; the number of electronic documents submitted to the Unified Register of Tax Invoices and the Unified Register of Excise Tax Invoices in recent years. The main components of the transformation of electronic administration of taxes in the world are considered; it is studied what applications and services have been implemented to improve the presentation of electronic reporting in the digital space; receiving consultations through chatbots, conducting inspections, etc., in recent years in countries such as Poland, Mexico, Australia, China, Spain and others. Promising directions for the development of electronic tax administration for Ukraine are outlined.

Analisis Manajemen Strategi Kebijakan Pembaharuan Core Tax Administration System (CTAS) dalam Upaya Penguatan Reformasi Administrasi Perpajakan di Indonesia

Tax reform is a refinement/improvement of tax administration performance carried out by the Directorate General of Taxes. One of the things that is part of tax reform is the Reform of the Core Tax Administration System (PSIAP) or Core Tax Administration System (CTAS). Currently, the DJP core system still has limitations in the form of not covering all business processes, so it is necessary to update the information technology system. This research was conducted with the aim of analyzing the strategic management of CTAS renewal policies in an effort to strengthen tax administration reform in Indonesia. The research method used is a qualitative approach and data collection techniques in the form of observation, interviews and documentation. The research results show that the strategy implementation stages have been prepared optimally but there are still things that need to be improved and perfected. Support is also available from several important aspects such as funding, leadership, organizational structure, human resources and information technology. The results of the SWOT analysis show that there are strengths in the legal basis, weaknesses in socialization, opportunities in the service process and inspections in the field and threats to the possibility of system hacking. There are inhibiting entities such as digital infrastructure that are prone to disputes and incentives in the form of preparations that are carried out according to plan. CTAS implementation will begin in 2024 and is expected to achieve the expected goals, namely ease of tax administration and strengthening of the administrative integration system.

Analisis E-filing Direktorat Jenderal Pajak dan E-filing Online Pajak untuk Pengembangan Jasa Aplikasi Perpajakan (Studi Kasus di Indonesia)

Taxes play an important role in increasing Indonesia's economic growth which is indicated by 82.85% of funds for the State Revenue and Expenditure Budget originating from state tax revenues. The Directorate General of Taxes as the most important institution in Indonesia issued an e-filing tax administration system (Electronic Filing System). DGT is assisted by ASP in implementing e-filing to facilitate tax services to taxpayers. However, ASP's e-filing portal continues to decline, this attracts the author's attention to examine the existence of ASP's e-filing in the next few years. This study aims to find out the gaps in future application development so that it becomes an opportunity for e-filing taxes which Application Service Providers compare to e-filing at the Directorate General of Taxes. The research method used interviews. The results of this research indicate that the opportunity for ASPs e-filing is high for the next few years, this is indicated by the consultants who continue to use ASPs e-filing because there are several advantages of ASP's e-filing that DGT does not have.

საქართველოს საგადასახადო სისტემის რეფორმირება: პრობლემური საკითხები

The article deals with some problematic issues identified in the process of reforming the tax system of Georgia. We focused on the risks identified in the direction of writing off tax debts, simplifying the procedures for refunding overpaid amounts, as well as excise policy measures. Forms of the relationship between tax administration bodies and taxpayers are part of the tax system. The results of the functioning of the tax system depend not only on the tax legislation and the quality of tax administration, but also on the mentality of citizens, their obedience to law, their commitment concerning the established tax burden, and public tax culture. It is clear that different societies differ from one another in their specific tax culture. We believe that the level of readiness of taxpayers for the tax burden should be considered when planning for reforming the tax system. In this context, the measures should be planned in such a way that by providing the right positive or negative incentives, the motivation of tax payers and the attitudes of society as a whole proceed in the way that could be desired in the long run. Taking into consideration the above circumstances, we think that the reform of tax legislation and administration system should continue under the following conditions: • A further simplification of procedures of tax administration. The further strengthening of electronic services; • Keeping the existing low tax rates. Under the conditions of the current level of tax culture, high tax rates push taxpayers to shady operations, thereby undermining their loyalty to taxes; • At the current stage, we consider unfounded the recent practice of introducing additional (especially non-tax) regulations for tax payers; • Caution should be exercised when writing off tax debts. Such precedents, especially those of a continuous nature, undermine the motivation of taxpayers; • There is a need to correct some weaknesses in the tax legislation and administration. This applies not only to the procedures for refunding overpaid amounts, but also to the possibilities of illegal use of special taxation regimes and a number of benefits; • It is important to give a sense of the stability of tax practices in society. It is necessary to comply with tax liabilities, regulation by law, uniformity, justice and other principles. Only in this case, the public tax culture will develop in the right direction in the long run.

Financial Inclusion and Information Communication Technology on Tax Performance in Sub-Saharan Africa

Purpose: The main objective of this paper is to determine empirically the impact of financial inclusion and Information Communication Technology (ICT) on tax performance in Sub-Saharan African countries; determine the extent to which the elements of financial inclusion have influenced tax performance of countries in Sub-Saharan Africa; and examine the role technology plays in impacting the performance of taxes in Sub-Saharan African countries. Theoretical Framework: The existing theories that serve as a roadmap for the development of this study are Theory of Digital Diffusion and Theory of Margins. Digital transformation has an important impact on the operations and systems of every economy, which often triggers a positive effect on taxes. Diffusion innovation theory was initiated by Rogers in 1962. The Theory of Margin on the other hand, is a theoretical school that gives validity to the impact of financial development on product output. It suggests that more access to financial services and products is vital for high output and economic advancement. Design/Methodology/Approach: The population considered in this study was 48 sub-Saharan African Countries from the period of 1999 to 2019. The methods used for the analysis consists of the descriptive and correlation analysis on the identified variables and a creation of financial inclusion index using the Principal Component Analysis to deal with multiclonality challenge amongst the financial inclusion proxies, it also adopted the two-staged least square estimation technique for the empirical analysis. Findings: The study reveals inter alia that the variables for financial inclusion and ICT proxies are overwhelmingly positive and significantly impact on the tax performance (i.e., total tax revenue and the non-resource tax revenue as percentages of GDP), in sub-Saharan Africa and that the financial inclusion index has positive effect on tax performance in sub-Saharan Africa. We also observed that there is a positive relationship between technology and tax performance in sub-Saharan Africa. Research Practical & Social implications: Policies should be formulated to engender enhancement of technology and more investment should be allocated to technology as it is discovered to drive financial inclusion and promotes tax revenue mobilization. In general, the findings indicate that policies are needed to engender an enhancement of technology and more investment should be channeled to technology as it affects financial inclusion and by logical extension, the promotion of tax revenue mobilization. Originality/value: The challenge of tax implementation can be directly ascribed to an ineffective tax system. A tax management that is of high in superiority, helps to make the tax mobilization process more transparent and efficient, and also reduce the level of shadow economy, which main feature is non- remittance or payment of tax. This study reveals that a tax administration system can only operate effectively with the use of modern information technologies.

PUBLIC DECISIONS IN THE TAX LEGISLATION OF GEORGIA

Ekaterine Shainidze 
 E-mail: ekaterine.shainidze@bsu.edu.ge 
 Doctor of Finance, Associate Professor, Batumi Shota Rustaveli State University 
 Batumi, Georgia 
 https://orcid.org/0000-0002-3612-1790
 
 Abstract. According to the tax legislation of Georgia, informing taxpayers is one of the important elements in the tax administration system. On January 1, 2011, with the implementation of the new tax code in Georgia, a public decision was defined as one of the sources of providing information to the taxpayer. It is a decision on the norm of application of the tax legislation, which is issued by the Minister of Finance of Georgia based on the decision of the dispute review body or based on the analysis of the existing practice of taxation of taxpayers by the tax body. A public decision has binding legal force, therefore, regulatory and law enforcement authorities are not authorized to charge a person additional fees and/or sanctions if he acts in accordance with a public decision.
 The introduction of the public decision mechanism into the tax legislation of Georgia was supposed to be a measure to facilitate the timely fulfillment of tax obligations by taxpayers, however, until now only 7 such decisions have been adopted and published accordingly. In addition, the use of the mentioned lever for informing the payers did not happen until 2018.
 Published public decisions have regulated several issues of taxation, including: income from securities, forgiveness of loan obligations for individuals, operations related to crypto-assets, the right to use a leased asset, delivery of agricultural products produced in Georgia, the difference between the weight of goods at the port of unloading and the port of loading when importing grain, Rules of taxation of tourist services. It is important to note that the basis of public decision-making is the analysis of the existing practice, which determines the need to explain the tax norm more than it is conveyed by the tax code or subordinate normative acts.
 The annual reports of the Revenue Service do not reflect information about the effectiveness of using this important lever of tax administration - the mechanism of public decision. In addition, it is difficult to name arguments about the absence of the need to use this means of informing the payers more intensively.
 A significant part of tax disputes is partially satisfied complaints in favor of taxpayers, which indicates that there are many disputed legal norms in the tax legislation. In the conditions of a low tax culture in the country, insufficient protection of one of the fundamental rights of taxpayers - the right to receive information about the application of the tax legislation of Georgia - has a negative effect on the timely fulfillment of tax obligations. In the mentioned conditions, the active use of the public decision mechanism has an important role in ensuring the correct and unambiguous application of tax norms, both from the side of the payers and the tax authorities.

Pengaruh Sakpole (Sistem Administrasi Kendaraan Pajak Online) terhadap Kepatuhan Wajib Pajak Kendaraan Bermotor dengan Pemahaman Internet Sebagai Variabel Moderating

This research aims to analyze and test the influence of the Online Vehicle Tax Administration System (SAKPOLE) on Taxpayer Compliance with internet understanding as a moderating variable. This research is quantitative research. The sampling technique used in this research is simple random sampling technique. The data used in this research is primary data by distributing questionnaires to users of the Online Vehicle Tax Administration System (SAKPOLE). The total sample used in this research was 164 respondents. The data analysis method used is a multiple linear regression model and analyzed using the SPPS version 21 program. The results of the research show that internet understanding has a positive and significant effect on the relationship between SAKPOLE and taxpayer compliance. So it is concluded that internet understanding is a moderating variable in the relationship between SAKPOLE and taxpayer compliance.

Faktor-Faktor Yang Mempengaruhi Kepatuhan Wajib Pajak Dalam Membayar Pajak Bumi dan Bangunan di Kecamatan Rantepao

This research aims to determine the factors that influence taxpayer compliance in paying land and building taxes in Rantepao sub-district. To achieve this goal, qualitative descriptive research methods were used. The analysis techniques used are data reduction, data presentation, conclusions and verification. Based on the results of data analysis, a discussion of the factors that influence taxpayer compliance in paying land and building taxes in Rantepao sub-district has been carried out using five predetermined indicators, namely the condition of the tax administration system, service to taxpayers, tax law enforcement, tax rates, knowledge. taxation. The results of the research findings show that the condition of the tax system being implemented is running well and effectively, services to taxpayers have been carried out well, law enforcement has been carried out, tax rates are appropriate, knowledge is still very low.

IMPLEMENTASI PENGGUNAAN E-FORM PADA PELAPORAN SPT TAHUNAN DI KANTOR KONSULTAN PAJAK (RIA TAX CONSULTANT)


 
 
 
 In order to encourage taxpayer compliance, the Directorate General of Taxes issued a tax administration system that utilizes technology, namely e-Form. This study aims to obtain evidence regarding the implementation of the use of e-Form in reporting Individual Taxpayer Annual Tax Returns. The analysis method used in this study is an empirical analysis method by obtaining information by collecting data. The results of this study show that the implementation of the use of e-Form in reporting individual taxpayer tax returns at the Ni Made Rianingsih Consultant Office provides many conveniences for taxpayers. The implementation of e-Form as a new breakthrough is expected to be able to provide excellent service to the community so that it can increase state tax revenue optimally.
 
 
 
 

Analysis of the Modernization of the Tax Administration System in the Context of Optimizing Advertisement Taxes in the District Tax Collection Service Unit. Gambir 2021-2022

In the optimization of advertising tax, there still a lack of awareness among the public of taxpayers regarding the advertising tax, and some advertising tax participants either evade or delay their payment obligations. The development of a modernized administration system aims to establish an efficient bureaucracy, particularly to enhance tax revenue. The objective of this research is to examine the modernization of the tax administration system to optimize advertising tax in the tax collection service unit of Gambir Sub-District in 2021-2022. The author applies Diana. Sari’s theory of tax administration modernization, as discussed by Imam Juhadi, and incorporates Person Horoda’s theory of advertising tax optimization. This study adopts a descriptive qualitative research approach. In 2021, the revenue from advertising tax in the tax collection service unit of Gambir Sub-district reached a percentage of 72.71%, while in 2022, it reached 68.89% of its target. It can be noted that in 2022, there was a significant deviation from the predetermined target due to various reasons. Several challenges were encountered by both a officials and taxpayers in fulfilling their obligations.

ASSESSMENT OF THE EFFECTIVENESS OF THE ACTIVITIES OF TAX AUTHORITIES IN FOREIGN COUNTRIES

In the institutional architecture of the tax administration system of any country, an important place belongs to the structure and hierarchy of tax authorities

The Influence of Service Quality, Taxpayer Awareness, and Modernization of the Tax Administration System on Individual Taxpayer Compliance at the Pondok Aren Pratama Tax Service Office

The Influence of Service Quality, Taxpayer Awareness and Modernization of the Tax Administration System on the Compliance of Individual Taxpayers Registered at KPP Pratama Pondok Aren. The observation method used is quantitative method, the research data is obtained through a questionnaire. The sampling technique uses Incidental Sampling. The results of this study indicate that the effect of service quality, taxpayer awareness and taxation system modernization is significant on taxpayer compliance, taxpayer awareness and modernization of the tax administration system on individual taxpayer compliance registered at KPP Pratama Pondok Aren, explaining what are the obstacles encountered and provide solutions to overcome these obstacles. Based on the observations made by the author, that the influence of service quality, taxpayer awareness and modernization of the tax administration system on the compliance of individual taxpayers registered at the Pondok Aren Tax Office in accordance with the legislation. Through observations, it can be concluded that the effect of service quality, awareness and modernization of the tax administration system must be maximized and must be further improved so as to increase individual taxpayer compliance.

Optimizing Tax Apparatus Performance Management in Implementing a Modern Tax Administration System

Taxes play a vital role in overseeing state finances, and enhancing the performance management of tax officials is essential for achieving the efficiency and long-term viability of the tax system. This research aims to examine and determine the most effective approaches to managing the performance of the tax apparatus, particularly in implementing a contemporary tax administration system. This study employs a qualitative methodology utilizing descriptive techniques. The research findings indicate that implementing tax administration reform in Indonesia, mainly through using advanced information and communication technology such as e-registration, e-filing, and e-billing, has resulted in a favorable outcome by enhancing efficiency, responsiveness, and transparency in tax management. These measures facilitate endeavors to enhance taxpayer adherence and bolster tax revenues. In addition, enhancing the performance management of the Tax Apparatus, particularly Account Representatives, in implementing a contemporary tax administration system entail employing crucial tactics such as ongoing training, utilization of specific performance metrics, and integration of information technology such as CRM. Providing rewards and professional growth chances for strong performance can enhance motivation while implementing open feedback methods and constant review can serve as a foundation for improvement. Cultivating interpersonal skills is equally crucial for enhancing connections with taxpayers. Continuous monitoring ensures that performance management techniques stay up-to-date and adaptable to changes in the tax environment. This helps achieve optimal tax revenue goals and enhances taxpayer compliance within the framework of modern tax administration.

Analisis Sanksi Perpajakan Dan Pengetahuan Peraturan Perpajakan Terhadap Kepatuhan Wajib Pajak Pada PT. SIP Inti Palapa Logistik

This study aims to determine the effect of Knowledge of Taxation Regulations and Tax Sanctions toward Taxpayer Compliance in PT. SIP Inti Palapa Logistik. The population in this study are employees in PT. SIP Inti Palapa Logistik. Samples taken as many as 50 respondents by using purposive sampling. Result of research partially indicate that Knowledge of Taxation Regulations has effect and significantly to Taxpayer Compliance in PT. SIP Inti Palapa Logistik.. Results of research partially indicate that Tax Sanctions has effect and significantly to Taxpayer Compliance in PT. SIP Inti Palapa Logistik. Results of simultaneously the Knowledge of Taxation Regulations and Tax Sanctions has effect and significantly to Taxpayer Compliance in PT. SIP Inti Palapa Logistik. The results of the coefficient of determination test show that the Taxpayer Compliance variable can be explained by the variables of Knowledge of Taxation Regulations and Tax Sanctions, while the remaining by other variables not examined in this study such as Tax Administration System, Tax Service Quality, Tax Audit Quality, Tax Rates and Taxpayer Behavior.

ФАКТОРИ ТА ПЕРЕДУМОВИ УДОСКОНАЛЕННЯ СИСТЕМИ АДМІНІСТРУВАННЯ ПОДАТКІВ В КОНТЕКСТІ ЦИФРОВІЗАЦІЇ ТА РОЗВИТКУ ФІНТЕХУ В УКРАЇНІ

The fintech system is a relevant and important component of society's life, as it concerns the use of digital technologies in all business processes, including in the field of taxation. Digital technologies in tax administration contribute to more comfortable and convenient interaction between taxpayers and tax authorities, reducing administrative costs, and increasing the efficiency of tax administration. Various means of digitization, such as electronic tax declarations, online payments, electronic receipts and others, make the process of tax administration more transparent and efficient. The article highlights the factors and prerequisites for the development of the fintech system in tax administration in Ukraine. The article describes the main directions of digitalization of the domestic tax administration system. The peculiarities of the functioning of the taxpayer's electronic office, the online service "Pulse", the chat-bot "Infotax", and the E-excise system are characterized in the article. Perspective directions of digitalization in the field of taxation in Ukraine are defined. This article determined the main advantages and disadvantages of the digitalization of the tax administration system in Ukraine. The reduction of costs for the administration of tax payments and the improvement of the efficiency of the work of tax authorities are the main advantages of the digitalization of tax administration. Significant budget expenditures for the modernization and implementation of digitization projects for the tax administration system are the main disadvantages. The main threat is related to the risk of cyber-attacks on electronic databases and information systems, which can lead to the unauthorized leakage of confidential information about taxpayers and the peculiarities of their economic activities.