Assessing the Contribution of Fintech toward Building an Adaptive and Transparent Taxation System in the Digital Economy

Abstract

The development of financial technology has served as a catalyst for transforming the global financial system by enhancing efficiency, transparency, and financial inclusion in the digital era. Financial technology not only revolutionizes conventional financial services but also plays a strategic role in strengthening modern taxation systems through digitalized payments, automated reporting, and the application of big data analytics. This study aims to examine the role of financial technology in improving tax compliance and its contribution to state revenue using a Systematic Literature Review approach on scholarly publications from the last five years. The findings indicate that financial technology implementation enhances the accuracy and transparency of transactions, expands the tax base, and accelerates digital tax reporting processes. However, challenges such as digital literacy, cybersecurity concerns, and regulatory disharmony remain major obstacles. This review emphasizes the importance of collaboration between tax authorities and financial technology operators to establish an adaptive, inclusive, and sustainable taxation framework in the digital economy era. The results also highlight financial technology potential to support fiscal modernization and promote equitable economic growth through technology-driven transparency.