Determinants of tax compliance: a study on individual taxpayers in Indonesia

Musthafa Kemal Nasution (), Fitri Santi (), Husaini Husaini (), Fadli Fadli () and Kashan Pirzada ()
Additional contact information
Musthafa Kemal Nasution: University of Bengkulu, Indonesia
Fitri Santi: University of Bengkulu, Indonesia
Husaini Husaini: University of Bengkulu, Indonesia
Fadli Fadli: University of Bengkulu, Indonesia
Kashan Pirzada: University Utara Malaysia, Malaysia

Entrepreneurship and Sustainability Issues, 2020, vol. 8, issue 2, 1401-1418

Abstract: This study aims to analyze the effect of tax knowledge, tax complexity, and tax justice on taxpayers’ trust and tax compliance as well as the differences in tax compliance levels in South Sumatra. The research is explanatory and takes a quantitative approach. The method of data collection used a questionnaire containing the variables and documentation outlined by the study. The research questions were tested using hypothetical compliance scenarios, with 900 registered individual taxpayers from five major cities in South Sumatra as participants. The researchers used confirmatory factor analysis (CFA) with the structural equation modeling (SEM) approach. Results of the research show that (1) tax knowledge has no effect on taxpayers’ trust, (2) tax complexity has no effect on taxpayers’ trust, (3) tax justice has an effect on taxpayers’ trust, (4) tax knowledge has no effect on tax compliance, (5) tax complexity has no effect on tax compliance, (6) tax justice has an effect on tax compliance, (7) taxpayers’ trust has an effect on tax compliance, and (8) there were differences in the level of tax compliance after the implementation of the SMS blast program.

Keywords: tax compliance; taxpayers’ trust; tax knowledge; tax complexity; tax justice; individual taxpayers (search for similar items in EconPapers)
JEL-codes: C83 H21 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/30/Nasut ... ers_in_Indonesia.pdf (application/pdf)
https://jssidoi.org/jesi/article/764 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:8:y:2020:i:2:p:1401-1418

DOI: 10.9770/jesi.2020.8.2(82)

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().