Digital Taxation and Compliance: Evaluating the Role of E-Filing in Indonesia’s Self-Assessment System

Abstract

Taxpayer compliance is central to the effectiveness of Indonesia’s self-assessment tax system, yet challenges remain in ensuring timely, accurate, and voluntary reporting. In response, the Directorate General of Taxes has implemented e-filing as part of broader digital reforms to modernize tax administration. This study examines the role of e-filing in improving taxpayer compliance through a structured literature review of national and international studies published between 2010 and 2024. The analysis highlights that e-filing significantly enhances the timeliness of submissions, reduces reporting errors through automated validation, and lowers compliance costs by offering greater convenience. These outcomes align with the Technology Acceptance Model, as perceived ease of use and usefulness drive adoption, which in turn strengthens compliance. Beyond technical benefits, e-filing also fosters trust and transparency, contributing to voluntary compliance. However, persistent challenges remain, particularly digital literacy gaps, infrastructure disparities, and concerns about data security. The study concludes that while e-filing represents a vital innovation in Indonesia’s tax administration, its long-term effectiveness requires complementary policies, including capacity building, infrastructure investment, and governance reforms to reinforce taxpayer trust. These insights contribute to both academic debates on digital taxation and practical strategies for strengthening compliance in developing economies.