Digital Financial Technology and Inclusion in Improving Local Tax Compliance: Evidence from West Sumatra
2nd International Conference on Sustainability and Technology in Climate Change, IC-STCC 2025, Hybrid, Yogyakarta, Indonesia, 20 September 2025, vol.657, (Full Text)
- Publication Type: Conference Paper / Full Text
- Volume: 657
- Doi Number: 10.1051/e3sconf/20256570404
- City: Hybrid, Yogyakarta
- Country: Indonesia
- Keywords: Digital Financial Technology, Emerging Economies, Fintech, Governance, Tax Compliance
- Bursa Uludag University Affiliated: Yes
Abstract
We examine the effects of digital financial technologies (FinTech) in local tax compliance in West Sumatra, Indonesia. A combination between a survey questionnaire and in-depth interviews was used to explore local taxpayers, government officials, and FinTech providers. The outcome suggests that digital tools enhance tax compliance by increasing access, transparency and efficiency. However, barriers such as weak digital literacy and gaps in infrastructure remain. The study emphasizes the significance of applying digital technology within tax administration to perform governance effectively. Encouragingly, the use of FinTech activities requires a targeted goal focusing on digital literacy and digital trust. This paper offers significant findings in regard to the impact of FinTech on the improvement of tax compliance in developing countries.