Abstract
<jats:p>The article investigates the role of digital instruments of local public finance management within the fiscal decentralisation mechanism under wartime conditions and post-war recovery of Ukraine. Digital transformation of tax administration is considered as a key institutional factor ensuring financial sustainability of territorial communities. Particular attention is paid to the implementation of OECD Tax Administration 3.0 approaches, which shift tax administration from traditional reporting procedures toward integrated digital ecosystems based on real-time data exchange. The study analyses the development of electronic taxpayer services, implementation of the SAF-T UA standard, expansion of software-based cash registers and digital fiscalisation processes in Ukraine. Using the case of Khmelnytskyi urban territorial community, the dynamics of personal income tax revenues during 2020–2024 are examined as an indicator of local fiscal capacity. The results demonstrate that digital tax instruments contribute to reducing shadow economic activity, improving tax compliance and stabilising local budget revenues even under crisis conditions. A conceptual model linking digital infrastructure, transparency, revenue stability and financial capacity of communities is proposed. The research proves that digital tax infrastructure enhances the effectiveness of fiscal decentralisation by reducing information asymmetry between central and local authorities. At the same time, cybersecurity risks, institutional limitations and regulatory challenges affecting digital transformation are identified. Digital public finance management is substantiated as a strategic tool for strengthening local resilience and supporting sustainable post-war economic recovery.</jats:p>