Politická ekonomie X:X | DOI: 10.18267/j.polek.1545

Impact of Government Digital Transformation on Corporate Tax Compliance: Evidence from China

Xiaoxiao Zhou ORCID..., Yifan Wang ORCID..., Xiaowei Ma ORCID..., Asma Nasim ORCID..., Irum Shahzadi
Xiaoxiao Zhou, School of Finance, Anhui University of Finance and Economics, Bengbu, China
Yifan Wang, School of Finance, Anhui University of Finance and Economics, Bengbu, China
Xiaowei Ma (corresponding author), School of Finance, Anhui University of Finance and Economics, Bengbu, China
Asma Nasim, Manchester Metropolitan University, Manchester, United Kingdom
Irum Shahzadi, Advanced Research Centre, European University of Lefke, Lefke, Northern Cyprus, Mersin, Turkey; Faculty of Economics, Széchenyi István University, Győr, Hungary

The value-enhancing function of information technology iteration establishes the inevitable connection between digitalization and tax governance. Government digital transformation seems to be critical to \"data-driven tax governance\". This paper seeks to shed light on how government digital transformation affects corporate tax compliance under the scenario of Chinese-style modernization. With the data of A-share listed companies from 2010 to 2022, series of empirical tests are displayed with the main method of Difference-in-Differences (DID) by considering the establishment of national big data pilot zones as a quasi-natural experiment. The findings mainly cover that government digital transformation can effectively promote corporate tax compliance by enhancing corporate performance, an active channel, and strengthening tax administration efforts, a passive channel. According to heterogeneity analysis, the positive impact of government digital transformation on corporate tax compliance appears to be more pronounced in the samples with higher marketization, higher levels of corporate digital transformation, and greater management power. Some policy suggestions are followed concluding enterprises should leverage digitalization to improve management systems, thereby enhancing tax compliance under the government\'s push for digital transformation.

Keywords: Government digital transformation, tax compliance, corporate performance, tax administration, Difference-in-differences

Received: August 11, 2025; Revised: November 12, 2025; Accepted: December 15, 2025; Prepublished online: October 21, 2026 

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