PROBLEMS AND SOLUTIONS FOR MODERNIZING THE TAX SYSTEM IN THE CONTEXT OF THE DIGITAL ECONOMY

Abstract

This article examines the problems and solutions involved in modernizing the tax system under the conditions of the digital economy. The study is based on a narrative review of recent institutional and analytical literature on digital taxation, e-commerce taxation, tax administration digitalization, and data-driven tax reform. The analysis shows that the digital economy challenges traditional tax systems because value creation is increasingly intangible, cross-border, and platform-based, while conventional tax rules were largely designed for physical presence and delayed reporting. At the same time, digital technologies such as e-filing, e-invoicing, integrated data systems, automated risk analysis, and real-time reporting create important opportunities for improving compliance, transparency, and revenue collection. The findings indicate that successful tax modernization depends not only on technological tools, but also on legal adaptation, institutional readiness, administrative coordination, digital infrastructure, and taxpayer trust. The article concludes that the modernization of the tax system in the digital economy should be understood as a comprehensive reform process aimed at building a more adaptive, efficient, fair, and sustainable fiscal system.