Designing a tax disclosure index to foster fiscal sustainability: Thematic analysis approach

This study aims to develop a comprehensive tax disclosure framework to support fiscal sustainability in Indonesia, by referring to the GRI 207 standard and domestic tax regulations. A qualitative-phenomenological approach was adopted in this study through literature reviews and in-depth interviews with key stakeholders, including tax regulators, sustainability experts, academics, consultants, and corporate taxpayers. Thematic analysis is applied to formulate tax disclosure indicators. The findings reveal that all identified elements and indicators are valid for constructing the tax disclosure framework. This study provides significant and original insights by developing a Tax Disclosure Index design for the Indonesian context while remaining aligned with international standards. The academic implication is to enrich the existing literature on tax disclosure frameworks. For public policy regulators, the development of a contextualized and standardized Tax Disclosure Index provides an evaluative instrument that can be utilized by tax and financial authorities in formulating more comprehensive tax transparency policies. The research findings encourage companies to proactively integrate tax aspects into their fiscal sustainability strategies and ESG (Environmental, Social, Governance) reporting. Furthermore, this study provides valuable insights for other countries that have not yet implemented tax disclosure regulations within similar contexts.