Policy Note: Blockchain Technology: Potential for Digital Tax Administration

Currently, blockchain is one of the most innovative emerging digital technologies. As such, it can undermine traditional business models and
revolutionize tax administration. This objective of this article is to present the potential of blockchain technology in the administration of specific
tax categories such as payroll taxes, value added tax, international taxes, and customs. It also analyses blockchain technology’s strengths,
weaknesses, opportunities, and threats (SWOT) with a focus on tax administration. As a generator of a substantial amount of information, tax
administration requires reliable and efficient technology for processing and storing the information that is generated. The results of the analysis
showed strengths such as a lower cost of fulfilling tax liabilities, a direct connection with taxpayers without the need of third parties. a higher
degree of efficiency, and threats such as insufficient funds for modernization, knowledge and skills of employees, and willingness to adapt and high
investment costs related to implementation. Moreover, it will modernize accounting and tax payments.