An Analysis of the Process of Converting Paper Documents into Electronic Documents in the Tax Administration System in Indonesia

Abstract

Tax is a mandatory levy imposed on citizens as well as a source of revenue in Indonesia. In order to increase the potential for taxation in Indonesia, the Directorate General of Taxes (DGT) is implementing tax reforms to enhance services and simplify the process for the public to pay taxes by converting paper documents into electronic-documents, such as implementing e-registration, ebilling, e-tax invoices, e-SPT, and e-bupot. Therefore, the aim of this study is to determine the funderlying factors behind the tax digitalization and its transition process in Indonesia. This study used a qualitative method which involved conducting in-depth interviews and obtaining supporting data from the DGT. The results of this study indicated that the funderlying factors behind the tax digitalization is to increase efficiency and effectiveness while also pursuing technological developments in increasingly advanced times. During the implementation of this e-document, it was discovered that there was an increase and decrease in the use of paper and electronic documents, as well as tax revenues from individual and corporate taxpayers, between 2017 and 2021. This may be caused by factors originating from the validity of electronic documents as well as other factors unrelated to the validity of electronic documents.