TAXPAYER COMPLIANCE: EXAMINING THE EFFECT OF THE ADMINISTRATION SYSTEM AND DIGITAL TAX LITERACY
Published:
2026-10-30Downloads
Abstract
This study aimed to examine the effects of digital tax literacy and the Coretax administration system on tax compliance among micro, small, and medium enterprise (MSME) taxpayers in Bandung City, West Java, Indonesia. Using a quantitative explanatory research design with variance-based structural equation modeling, data were collected through structured questionnaires from 129 MSME taxpayers selected through purposive sampling. The results indicate that digital tax literacy has a positive and significant effect on tax compliance, with a coefficient value of 0.610 and a probability value of 0.000. Taxpayers with higher digital literacy can calculate, remit, and report their taxes independently, reducing cost and time barriers and minimizing risks such as data entry errors and late reporting. In contrast, the Coretax administration system does not significantly affect tax compliance, with a coefficient value of 0.119 and a probability value of 0.170. The majority of respondents had limited experience with Coretax, with 43.41% having less than six months of experience, and the system is perceived as complex by taxpayers unfamiliar with technology. The model explains 50.1% of the variance in tax compliance, while the remaining 49.9% is explained by factors outside the model. These findings suggest that tax compliance among MSME taxpayers is primarily driven by digital tax literacy rather than by the digital administration system. The practical implication is that the Directorate General of Taxes should enhance digital tax literacy programs and ensure the Coretax system is free of technical issues to improve taxpayer compliance.
Keywords:
Digital Tax Literacy Coretax Tax Compliance MSME Digital Administration SystemReferences
Afiah, N. N., Rahmawati, R., & Kurniawan, A. (2025). The effectiveness of Coretax implementation on taxpayer compliance. Jurnal Akuntansi dan Bisnis Indonesia, 18(2), 145–163.
Agun, W. A., Sudarma, M., & Rosidi, R. (2022). The effect of e-filing, e-billing, and e-withholding on taxpayer compliance. International Journal of Research in Business and Social Science, 11(5), 267–275. https://doi.org/10.20525/ijrbs.v11i5.1876
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Alm, J. (2019). What motivates tax compliance? Journal of Economic Surveys, 33(2), 353–388. https://doi.org/10.1111/joes.12272
Anggraeni, D., & Susilowati, E. (2025). Coretax system integration and taxpayer compliance in Indonesia. Jurnal Perpajakan Indonesia, 12(1), 56–74.
Arifin, A., Hidayat, R., & Nugraha, D. (2026). Tax compliance among MSMEs in West Java: Determinants and challenges. Jurnal Akuntansi dan Keuangan Indonesia, 19(1), 78–96.
Audia, P. S., Tjaraka, H., & Utama, A. A. G. S. (2026). Digital tax compliance: The role of literacy, ease, and trust. Advances in Taxation Research, 4(2), 144–158. https://doi.org/10.60079/atr.v4i2.850
Avinç, E., & Doğan, F. (2024). Digital literacy scale: Development and validation. Education and Information Technologies. https://doi.org/10.1007/s10639-024-12567-5
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982–1003. https://doi.org/10.1287/mnsc.35.8.982
Dzulhijjah, A., Putri, R., & Hidayat, M. (2025). MSME tax compliance in Indonesia: Challenges and determinants. Journal of Accounting and Public Policy, 44(3), 102–119. https://doi.org/10.1016/j.jaccpubpol.2025.102119
Fanani, M., & Anggoro, D. (2025). Digital literacy and tax compliance in the era of Coretax. Indonesian Journal of Business and Economics, 12(1), 78–95.
Fathani, A. T., & Apollo, A. (2020). The effect of tax administration modernization on taxpayer compliance. Jurnal Akuntansi dan Keuangan Indonesia, 17(2), 185–204. https://doi.org/10.21002/jaki.2020.10
Hafizd, M., & Mujiyati, M. (2026). Coretax system and taxpayer compliance: Evidence from Surakarta. Jurnal Riset Akuntansi dan Perpajakan, 13(1), 45–62.
Inasius, F. (2019). Factors influencing SME tax compliance: Evidence from Indonesia. International Journal of Public Administration, 42(5), 367–379. https://doi.org/10.1080/01900692.2018.1464578
Mellisyah, M., & Mira, M. (2025). Digital tax literacy and tax compliance: A contradictory finding. Jurnal Ilmiah Akuntansi dan Bisnis, 20(1), 112–130.
Ministry of Cooperatives and SMEs of the Republic of Indonesia. (2023). Perkembangan UMKM di Indonesia 2023. Kementerian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia.
Oats, L., & Tuck, P. (2019). Corporate tax avoidance: Is tax transparency the solution? Accounting and Business Research, 49(5), 565–583. https://doi.org/10.1080/00014788.2019.1611726
Oktari, R., & Yulita, R. (2025). Modern tax administration system and taxpayer compliance. Jurnal Akuntansi Multiparadigma, 16(1), 88–105.
Oktaviani, R. M., Wahono, R., & Hardiningsih, P. (2025). Coretax system and its effectiveness on taxpayer compliance. Jurnal Akuntansi dan Bisnis, 25(1), 67–84.
Oladipo, O. A., Nwanji, T. I., Eluyela, D., Godo, B., & Adegboyegun, A. E. (2022). Impact of tax fairness and tax knowledge on tax compliance behavior of listed manufacturing companies in Nigeria. Problems and Perspectives in Management, 20(1), 41–48. https://doi.org/10.21511/ppm.20(1).2022.04
Saptono, P. B., & Khozen, I. (2023). What determines the tax compliance intention of individual taxpayers receiving COVID-19-related benefits? Insights from Indonesia. International Journal of Sociology and Social Policy, 43(11-12), 1190–1217. https://doi.org/10.1108/IJSSP-02-2023-0045
Saputro, R., Hidayat, A., & Nugroho, B. (2025). Coretax digitalized administration system and taxpayer compliance. Jurnal Sistem Informasi Perpajakan, 8(1), 34–52.
Shalihah, M., Fauziyah, F., & Yani, A. (2026). The influence of digital tax literacy on formal compliance of individual taxpayers following NIK-NPWP integration. Al-Kharaj: Journal of Islamic Economic and Business, 8(2). https://doi.org/10.24256/kharaj.v8i2.9930
Sholihah, A., & Nugroho, L. (2025). Beyond tax knowledge: Exploring the impact of digital literacy and tax stereotypes on MSME tax compliance. Diponegoro Journal of Accounting, 14(3), 1–15.
Tryani, A., & DP, R. T. K. (2026). Determinasi kepatuhan pajak: Integrasi faktor psikologi sosial, penegakan hukum, dan digitalisasi. Jurnal Akuntansi Keuangan dan Perpajakan, 2(4), 739–749.
West Java Province Office of Cooperatives and Small Businesses. (2023). Data UMKM Jawa Barat 2023. Dinas Koperasi dan Usaha Kecil Provinsi Jawa Barat.
License
Copyright (c) 2026 Setiyati Setiyati, Lauw Tjun Tjun
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
