The examination of the potential capacity of e-commerce taxation not only can lead to an increase in sustainable government revenues but also contributes to economic transparency, tax equity, and fair market regulation. The methodology of this research was executed descriptively-analytically using secondary data (Creswell & Creswell, 2023). During the period spanning from the years 1396 to 1400 [Solar Hijri Calendar], no e-commerce tax was claimed, nor was any tax collected in Kurdistan Province. Therefore, based on Arab Mazar’s (1388/2009) research, which defined tax potential capacity as equivalent to collected taxes, the potential capacity for e-commerce tax in Kurdistan Province was evaluated as very weak. Other findings indicate that, due to the absence of any tax files related to e-commerce businesses, the Tax Affairs Organization in Kurdistan Province has performed very weakly in identifying e-commerce taxpayers, creating an environment conducive to tax evasion, and e-commerce taxpayers have also failed to fulfill their legal obligations, including the submission of tax declarations