TRANSFORMATION OF TAX COMPLIANCE: FACTORS THAT DERIVE TAXPAYER’S COMPLIANCE IN INDONESIA
This research study represents the taxpayer behaviour towards tax compliance in Indonesia. Tax remains complicated issues that involving political problems in it. However, this study will focus on the behaviour of taxpayer that drives them to comply their tax obligations on specific time. The objectives of this study are identifying the correlations between factors variable that increase tax compliance in Indonesia, which are tax awareness, service quality, digital transformation, working relationship, and government program education. In addition, this study will also include three control variables, which are group of age, occupation, and monthly income. However, it will not influence the result of this study. The methodology used in this study is quantitative approach by distributing the questionnaire to the relevant voluntary respondents. This study involves 265 voluntary respondents with different characteristics. The result of this study explains that two out of five hypotheses are accepted. Independent variable that has significant effect to taxpayer compliance are tax awareness and digital transformation. The understanding of tax benefits and the ease of reporting and paying tax obligations is increased with tax revenue. Therefore, the author recommends increasing the tax compliance in Indonesia, distribution of tax matter related education and improving the digital-based tax reporting and paying would be beneficial and expected to give a positive impact towards tax compliance in Indonesia.
Tax Awareness, Service Quality, Digital Transformation, Working Relationship, Government Program Education, Tax Compliance