Effects of digitalization on the informal economy

It has emerged with the advancement of technology in the last century in the world at a speed that cannot be reached and the serious development of information communication technology. Along with these developments, the use of the concepts of digitalization and digital economy in the world is increasing day by day. With the development of digitalization and technology, national borders have disappeared and the traditional economy has been replaced by the digital economy. With the development of the digital economy, there have been deficiencies in the legal legislation of countries related to their economies. These legislations prepared for the traditional economy were insufficient for the digital economy. With the increase in the digital economy day by day, informality has also increased. Countries have had to make changes in their legislation in order to fill the void of taxation of the digital economy and reduce informality, and they have made legislative work especially for the taxation of the digital economy. Thanks to e-services, which have increased with the development of information and communication technology along with digitalization, the transition to the formal economy has become easier and it has become easier to track taxpayers and collect taxes more transparently and efficiently. In addition, with the payment systems developed with digitalization, it becomes easier to follow the taxpayers and the informality is reduced to lesser levels by making the payments in digital environments. In this study, it is examined how informality is affected by the development of digitalization and digital economy. Legislation studies of countries for the taxation of the digital economy have been researched. In addition, the advantages of digitalization in reducing the informal economy were examined and the effect of the development of the digital economy on the informal economy was investigated.