At present, the digital economy is booming globally and has become a key driver of China’s economic growth and industrial transformation. The digital economy has profoundly changed the traditional industrial structure with the help of 5G, artificial intelligence, cloud computing, big data and other technologies, especially in the mobile communications industry. China’s mobile industry has grown by leaps and bounds over the past decade, becoming one of the largest markets in the world. With the commercialization of 5G, the popularization of IoT and digital transformation, the industry’s business model and market landscape have undergone fundamental changes, and the landing of new application scenarios, such as smart cities and Internet of Vehicles (IoV), has prompted the industry to enter a new stage of development. However, the rise of the digital economy has also brought new challenges to the tax administration of the mobile communication industry, with the emergence of issues such as tax attribution of cross-regional business, jurisdictional difficulties brought about by data flow and virtual business, blurred tax management boundaries, complex tax collection and administration, lagging tax collection and administration model, tax compliance and information disclosure, corporate tax avoidance behavior and tax base erosion, and so on. Therefore, the main research of this topic is the challenges and initiatives of taxation in China’s mobile communication industry in the era of digital economy. This paper takes the digitalization of tax collection and administration as the starting point to improve the tax collection and administration mechanism, optimize the tax policy, and better unleash the market vitality of the mobile communication industry.