Assessing The Challenges Of Digitalizing Tax Administration In Malaysia: A Conceptual Analysis
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Nur Azreen Azriana binti Azham
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Politeknik Tuanku Syed Sirajuddin, Perlis,
Malaysia
Abstract
This paper explores the challenges and implications of digitalization in taxation, focusing on the case of Malaysia. This article applies a systematic approach to literature review which examines how digital transformation has impacted tax administration, from the introduction of e-filing and online payments to the broader shifts in policy design and implementation. Despite the potential benefits such as increased efficiency and revenue collection, Malaysia faces several hurdles in fully embracing digitalization. These include issues with communication, tax agent acceptance, the transformation of tax administration itself, tax system awareness and education, and the evolving landscape for businesses and society. The paper emphasizes the need for strategic planning, capacity building, stakeholder involvement, and effective change management to successfully navigate the digitalization of tax administration. Overall, it underscores the importance of addressing these challenges to fully realize the potential of digitalization in enhancing tax compliance and government revenue. Malaysia must prioritize strategy, stakeholder engagement, capacity building, and robust change management to achieve success in digital tax administration.
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