Service Quality and Perceived Fairness Drive Trust and Local Tax Compliance in Eastern Indonesia

Aco Firsam Rizal () and Abdul Rahman Kadir
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Aco Firsam Rizal: Hasanuddin University
Abdul Rahman Kadir: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 2290-2302 from Springer

Abstract: Abstract This study investigates how institutional antecedents digital tax service quality and perceived fairness shape local tax compliance among Micro, Small and Medium Enterprises (MSMEs) through the mediating role of trust in local government. Within Indonesia’s decentralized, self-assessment regime, we theorize that reliable, usable and responsive e-tax services, alongside equitable and transparent tariff/procedural arrangements, constitute legitimacy-building signals that foster trust and, consequently, compliance. A cross-sectional survey across three Eastern Indonesian cities was analyzed using PLS-SEM. Reflective measures demonstrated satisfactory reliability and convergent validity (CR ≥ 0.86; AVE ≥ 0.56), with discriminant validity corroborated via robustness checks. Structural estimates indicate that service quality (β = 0.248, p

Keywords: Digital Tax Service Quality; Perceived Fairness; Trust In Local Government; MSME Tax Compliance; PLS-SEM (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_160

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DOI: 10.2991/978-94-6239-709-5_160

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