Analysis of Factors Influencing Taxpayer Compliance in Paying Regional Taxes in Mataram City

Saumatur Rizky; Hailuddin Hailuddin; Sujadi Sujadi

doi:10.59535/6trap916

Authors

Saumatur Rizky Development Studies Economics Study Program, Faculty of Economics and Business, University of Mataram, Indonesia Author
Hailuddin Hailuddin Development Studies Economics Study Program, Faculty of Economics and Business, University of Mataram, Indonesia Author
Sujadi Sujadi Development Studies Economics Study Program, Faculty of Economics and Business, University of Mataram, Indonesia Author

DOI:

https://doi.org/10.59535/6trap916

Keywords:

Regional Taxes, Tax Law Enforcement, Taxpayer Compliance

Abstract

This study aims to analyze the influence of the tax administration system, tax services, tax rates, tax audits, tax law enforcement, and tax knowledge on taxpayer compliance in paying local taxes in Mataram City. This study uses a quantitative approach with an associative research type. Data were collected through distributing questionnaires to 100 taxpayer respondents in Mataram City and analyzed using multiple linear regression with the help of SPSS software. The results of the study indicate that simultaneously, all independent variables have a significant effect on taxpayer compliance. Partially, the variables of tax services, tax rates, tax audits, and tax law enforcement have a significant influence, while the tax administration system and tax knowledge have no significant effect. Tax law enforcement is the most dominant factor in influencing taxpayer compliance. In connection with these findings, it is recommended that the Mataram City Government improve and strengthen aspects of tax law enforcement firmly and consistently. The application of administrative and criminal sanctions for violations of tax obligations must be carried out effectively to create a deterrent effect for non-compliant taxpayers.

References

[1] P. Wibowo and E. Murwaningsari, “Factors influencing non-tax revenue sustainability in Indonesian government institutions: the mediating role of accountability,” Cogent Business & Management, vol. 11, no. 1, p. 2303788, Dec. 2024, doi: 10.1080/23311975.2024.2303788.

[2] T. T. Ho, X. H. Tran, and Q. K. Nguyen, “Tax revenue-economic growth relationship and the role of trade openness in developing countries,” Cogent Business & Management, vol. 10, no. 2, p. 2213959, Dec. 2023, doi: 10.1080/23311975.2023.2213959.

[3] E. Endris and A. Kassegn, “The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia,” J Innov Entrep, vol. 11, no. 1, p. 20, Feb. 2022, doi: 10.1186/s13731-022-00221-8.

[4] L. M. Batrancea et al., “A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries,” Financ Innov, vol. 8, no. 1, p. 96, Nov. 2022, doi: 10.1186/s40854-022-00404-y.

[5] B. Soergel et al., “A sustainable development pathway for climate action within the UN 2030 Agenda,” Nat. Clim. Chang., vol. 11, no. 8, pp. 656–664, Aug. 2021, doi: 10.1038/s41558-021-01098-3.

[6] A. Kentikelenis and T. Stubbs, “Austerity Redux: The Post-pandemic Wave of Budget Cuts and the Future of Global Public Health,” Global Policy, vol. 13, no. 1, pp. 5–17, 2022, doi: 10.1111/1758-5899.13028.

[7] N. M. Al-Rahamneh, M. K. Al Zobi, and Z. Bidin, “The influence of tax transparency on sales tax evasion among Jordanian SMEs: The moderating role of moral obligation,” Cogent Business & Management, vol. 10, no. 2, p. 2220478, Dec. 2023, doi: 10.1080/23311975.2023.2220478.

[8] E. Abdu and M. Adem, “Tax compliance behavior of taxpayers in Ethiopia: A review paper,” Cogent Economics & Finance, vol. 11, no. 1, p. 2189559, Dec. 2023, doi: 10.1080/23322039.2023.2189559.

[9] P. B. Saptono et al., “Quality of E-Tax System and Tax Compliance Intention: The Mediating Role of User Satisfaction,” Informatics, vol. 10, no. 1, Art. no. 1, Mar. 2023, doi: 10.3390/informatics10010022.

[10] G. Mazzolini, L. Pagani, and A. Santoro, “The deterrence effect of real-world operational tax audits on self-employed taxpayers: evidence from Italy,” Int Tax Public Finance, vol. 29, no. 4, pp. 1014–1046, Aug. 2022, doi: 10.1007/s10797-021-09707-9.

[11] D. Mifsud, “A systematic review of school distributed leadership: exploring research purposes, concepts and approaches in the field between 2010 and 2022,” Journal of Educational Administration and History, vol. 56, no. 2, pp. 154–179, Apr. 2024, doi: 10.1080/00220620.2022.2158181.

[12] V. van den Boogaard and R. Beach, “Tax and governance in rural areas: The implications of inefficient tax collection,” Journal of International Development, vol. 35, no. 7, pp. 1892–1912, 2023, doi: 10.1002/jid.3756.

[13] G. W. Cheung, H. D. Cooper-Thomas, R. S. Lau, and L. C. Wang, “Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations,” Asia Pac J Manag, vol. 41, no. 2, pp. 745–783, Jun. 2024, doi: 10.1007/s10490-023-09871-y.

[14] I. e Hassan, A. Naeem, and S. Gulzar, “Voluntary tax compliance behavior of individual taxpayers in Pakistan,” Financ Innov, vol. 7, no. 1, p. 21, Mar. 2021, doi: 10.1186/s40854-021-00234-4.

[15] L. Yin, L. Tan, J. Wu, and D. Gao, “From Risk to Sustainable Opportunity: Does Climate Risk Perception Lead Firm ESG Performance?,” Journal of International Financial Management & Accounting, vol. n/a, no. n/a, doi: 10.1111/jifm.12238.

[16] S. G. Singh and S. V. Kumar, “Dealing with Multicollinearity Problem in Analysis of Side Friction Characteristics Under Urban Heterogeneous Traffic Conditions,” Arab J Sci Eng, vol. 46, no. 11, pp. 10739–10755, Nov. 2021, doi: 10.1007/s13369-020-05213-y.

[17] I. N. Darmayasa and N. S. Hardika, “Core tax administration system: the power and trust dimensions of slippery slope framework tax compliance model,” Cogent Business & Management, vol. 11, no. 1, p. 2337358, Dec. 2024, doi: 10.1080/23311975.2024.2337358.

[18] O. Khaltar, “Tax evasion and governance quality: The moderating role of adopting open government,” International Review of Administrative Sciences, vol. 90, no. 1, pp. 276–294, Mar. 2024, doi: 10.1177/00208523231197317.

[19] M. A. Khan and H. Tjaraka, “Tax justice and understanding: MSME compliance with Tax Regulation No. 55/2022 in Surabaya, Indonesia,” Cogent Business & Management, vol. 11, no. 1, p. 2396042, Dec. 2024, doi: 10.1080/23311975.2024.2396042.

[20] M. A. Górecki and N. Letki, “Social Norms Moderate the Effect of Tax System on Tax Evasion: Evidence from a Large-Scale Survey Experiment,” J Bus Ethics, vol. 172, no. 4, pp. 727–746, Sep. 2021, doi: 10.1007/s10551-020-04502-8.

[21] V. A. Trifan, S. G. Szentesi, L. D. Cuc, and M. F. Pantea, “Assessing Tax Compliance Behavior Among Romanian Taxpayers: An Empirical Case Study,” SAGE Open, vol. 13, no. 3, p. 21582440231195676, Jul. 2023, doi: 10.1177/21582440231195676.