This article provides a comprehensive analysis of the theoretical and practical aspects of improving the taxation system in the context of the digital economy. It examines the key features of the digital economy, including the dominance of intangible assets, the expansion of cross-border transactions, and the growing share of digital services, which create new taxation challenges. The study substantiates the opportunities to enhance the efficiency of the tax system through the digitalization of tax administration, the implementation of advanced technologies, and the improvement of the regulatory framework. Based on the analysis of international experience and national practices, the research develops scientific conclusions aimed at effective taxation of digital economy entities, ensuring fiscal stability, and reducing the shadow economy.