The implementation of information technology (IT)-based taxation system in Indonesia has an important role in improving tax administration efficiency, transparency, and tax compliance. Along with the rapid development of digital technology, the Indonesian government through the Directorate General of Taxes (DGT) has launched various IT-based policies and systems, such as e-filing and e-payment. However, the implementation of these systems faces various challenges, mainly related to the technology infrastructure gap between urban and remote areas, data security issues, as well as reliance on limited digital literacy. Limited internet access in remote areas and threats to the security of taxpayers' personal data are significant barriers to the effective implementation of digital systems. In addition, the low level of digital literacy among both the public and tax officials exacerbates the implementation of this policy. Nevertheless, the implementation of an IT-based taxation system also presents great opportunities, such as increased efficiency of tax administration, reduction of tax avoidance practices, and ease of access for taxpayers to report and pay taxes. In addition, the digital system allows for more transparent and accountable supervision. The utilization of technology also opens up opportunities for the use of big data in formulating more targeted tax policies. Therefore, to optimize this opportunity, there is a need to strengthen infrastructure, increase digital literacy, and policies that support the development of IT-based taxation systems in Indonesia.
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