Digital Transformation in Tax Administration and Revenue Performance: Comparative Evidence from ASEAN Using ISORA Data

Abstract

Purpose: This study examines the level of digital transformation in tax administration across ASEAN countries and evaluates its relationship with taxpayer compliance and revenue performance.

Design/methodology/approach: The study employs a descriptive-comparative approach using panel data from the International Survey on Revenue Administration (ISORA) version 4.0. The analysis covers eight ASEAN countries and compares indicators of e-payment adoption, ICT expenditure, on-time filing rates, audit activities, and tax-to-GDP ratios across two observation periods.

Findings: The results reveal substantial disparities in tax administration digitalisation across ASEAN. Indonesia and Singapore lead in e-payment adoption, while Singapore and Thailand demonstrate superior filing compliance. The findings also indicate a positive association between sustained ICT investment and administrative performance, although Indonesia presents an exception with declining ICT expenditure accompanied by stable compliance indicators. Furthermore, countries with stronger digital ecosystems tend to achieve better revenue performance and institutional efficiency.

Practical implications: The findings suggest that digital transformation should be accompanied by sustained ICT investment, risk-based enforcement strategies, and integrated digital ecosystems to improve taxpayer compliance and broaden the tax base.

Originality/value: This study contributes to the limited comparative literature on digital tax administration in ASEAN by providing empirical evidence based on ISORA data and offering policy lessons for strengthening digital taxation strategies in emerging economies.

Paper type: Empirical paper.