The impact of digitalization of the tax system on improving tax resources in the Republic of Yemen

Abstract

The main objective of this research is to analyze the impact of the digitalization of the tax system on improving tax resources in the Republic of Yemen, using digital transformation technologies. The research highlights the importance of adopting digital transformation technologies to address various shortcomings in traditional tax systems, such as the increase in tax arrears for some taxpayers, the increase in tax evasion cases, the long duration of tax audits and the complexity of their procedures.

SPSS statistical software was used to conduct the necessary analyses, using a number of descriptive and inferential statistical measures, as well as tests appropriate to the study's hypotheses and objectives. A paper questionnaire was distributed to employees of the tax administration in the capital, Sana'a.

This research has led to several findings, the main ones being the following: the digitalization of the tax system has a positive and statistically significant impact on increasing tax revenues, limiting tax evasion, and reducing expenses, time, and effort. Despite these positive effects, the digital transformation of the tax system in Yemen faces several structural challenges, including: the lack of qualified human resources, insufficient digital infrastructure, the absence of a clear and favorable legal framework and a weak digital culture within the tax administration