The Pacific Financial Inclusion Programme’s Abigail Chang says tax departments in the region still use manual processes to receive paper tax returns.
Ms Chang said the new digital system would provide more payment options and reduce cash handling.
In Solomon Islands it is estimated the system could be used by more than 123,000 employees, 200 corporate taxpayers and about 3,600 small businesses.
The programme has provided a grant of more than $US450,000 for the system to be installed in the Solomons.
Ms Chang said it would automate the receipt, assessment, payment and reimbursement of all tax types involving both, corporate and individual clients of the Inland Revenue Department.
She said it could also help to expand financial inclusion in the Solomon Islands, where about two thirds of the adult population do not access formal financial services.