Core-Tax System Implementation and Tax Revenue in Indonesia and OECD Countries: A Systematic Literature Review
The implementation of core-tax systems represents a transformative step in modernizing tax administration, offering the potential to enhance efficiency, compliance, and revenue generation. This systematic literature review examines the relationship between core-tax system implementation and tax revenue, with a particular focus on Indonesia and comparisons with OECD countries. Drawing from studies published between 2011 and 2024, the review synthesizes insights on the benefits, challenges, and impacts of these systems across different economic and technological contexts. Key findings highlight that digital tax systems improve administrative efficiency, reduce compliance costs, and foster greater transparency. However, challenges such as infrastructure deficits, taxpayer resistance, and regulatory complexity persist, particularly in developing countries like Indonesia. By contrast, OECD countries benefit from advanced infrastructure, streamlined regulations, and higher taxpayer trust, providing valuable lessons for nations transitioning to digital systems. In Indonesia, initiatives such as the Core Tax Administration System (CTAS) have shown promise in addressing compliance gaps and increasing revenue collection. Nevertheless, significant barriers remain, including uneven internet access, low digital literacy, and cultural resistance to digital adoption. Comparative analysis underscores the importance of targeted investments in infrastructure, simplification of tax procedures, and fostering trust through transparent practices. This review identifies gaps in the literature, such as the long-term impact of core-tax systems on economic growth and fiscal stability, and calls for future research to explore these dimensions. Policymakers are urged to adopt a holistic approach that integrates technological advancements with robust policy frameworks and taxpayer engagement. By addressing these challenges, countries can leverage core-tax systems to enhance governance, strengthen public finances, and drive sustainable economic development. This study contributes to the growing body of knowledge on tax modernization and its critical role in shaping equitable and efficient fiscal systems.