A Study on Enhancing the Adaptability between Tax Governance and Digital Economy Development

Abstract

The digital economy has now become a driving force for China's high-quality development and a new engine for economic growth. Different from the traditional economy, the digital economy features virtuality, concealment, and cross-border characteristics, posing severe challenges to tax system design and tax collection. Traditional tax governance models can no longer address a series of tax issues in the digital era. This paper first elaborates on the connotation and characteristics of the digital economy, then analyzes the asynchronous dilemmas between China's tax governance and the digital economy from the perspectives of tax systems, tax collection systems, tax supervision capabilities, and talent demand. Finally, it explores specific countermeasures to enhance the adaptability, including improving the tax legal system and tax registration system, enhancing the adaptability of traditional taxes to the digital economy, optimizing tax collection systems, and cultivating professional talents, aiming to promote the quality and efficiency of China's tax governance.