Articles

Core-Tax System Implementation and Tax Revenue in Indonesia and OECD Countries: A Systematic Literature Review

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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.

Tax Revenue and Human Development Index in the Seven ASEAN Countries

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This research is motivated by curiosity about tax revenues and human development indices in 7 (seven) ASEAN countries that are influenced by tax revenues. The aim of this study is to show the impact of taxes on the Human Development Index in 7 ASEAN countries. Examples of this study include Indonesia, Malaysia, the Philippines and Thailand, Myanmar, Cambodia, and Vietnam. The second data used in this study covers the period from 2010 to 2023. The regression of the panel data was used in the processing of the study data. At the same time, this study significantly illustrates the influence of independent variables on related variables. Variable inflation had a significant negative impact on tax revenues, while variable market capitalization and tourist visits had a positive and significant correlation with tax revenues. Tax revenues also have a positive impact on the economic growth of ASEAN countries (Indonesia, Malaysia, the Philippines, Thailand, Myanmar, Cambodia and Vietnam).

The Level of Development and Tax Revenues in the Association of Southeast Asian Nations

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In this study, three distinct panel models, namely the Pool Ordinary Least Square (OLS), Fixed Effect (FE), and Random Effect (RE) models, were utilized to investigate the impact of foreign direct investment, trade openness, inflation rate, proportion of value added in agriculture, proportion of value added in industry, civil liberties, political rights index, official development assistance, and human development index on tax revenue in the six ASEAN countries, namely Cambodia, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, over the period of 2005 to 2021. The FE model was deemed more appropriate than the Pooled OLS model, as indicated by the FE test. Furthermore, a Hausman test was conducted, which revealed that the FE model was more suitable than the RE model. Regarding the empirical findings of the fixed effects (FE) model, it was observed that four indicators, namely FDI, TRADE, INF, and HDI, exhibit a statistically positive correlation with tax revenue. This implies that an increase in these variables would facilitate the promotion of tax revenue. Conversely, two variables, ARG and CIVLIB, despite exhibiting statistically significant correlations with tax revenue, demonstrate negative effects. This leads to the conclusion that an increase in these indicators would result in a decline in tax revenue.