The Impact of Digitalization on Tax Compliance Among Individual Taxpayers in Lagos State

The digital revolution has significantly transformed various aspects of society, including taxation systems. This study investigated the impact of digitalization on tax compliance among individual taxpayers in Lagos State. The study examined the impact of digitalization, such as electronic tax filing, electronic registration, electronic receipt of tax and digital tax clearance certificate, on tax compliance behavior. The study employed survey research and questionnaire. The population of the study is the entire individual taxpayers of 3,625,472 in Lagos metropolis as it was stated in Lagos Internal Revenue Service 2022 report. A sample size of 400 was determined for the study but only 310 fully filled and returned their questionnaire, resulting in a 77.5% return rate. The Cronbach’s alpha reliability coefficients ranged from 0.837–0.936 which implies that all the concepts measured were all reliable. The rates were analyzed using descriptive and inferential statistics. The study concluded that digitalization has a positive impact on tax compliance in Lagos. The study recommended that to facilitate online information access, payment processing and return filing for taxpayers, tax authorities ought to persist in developing their offerings.