Tax Compliance Enhancement Strategy Through Tax Morale: The Role of Social Norms, Perception of Justice, and Trust in Government (A Study on Individual Taxpayers in Dki Jakarta Province)
Year: 2026
Type: article
Abstract: The purpose of this study is to empirically examine the role of social norms, perceived fairness, and trust in government as predictors of tax morale, the role of tax morale as a predictor of tax compliance, the mediating role of tax morale, and to formulate priority strategies for improving tax compliance among individual taxpayers in DKI Jakarta Province. The study is motivated by the realization of DKI Jakarta's local own-source revenue that never reached its target during 2020–2024 and the decline of the national formal compliance ratio of annual tax return filing in 2024, which indicate a compliance problem that is not purely economic. This research is a quantitative study with a conclusive descriptive design; the sample consists of 103 individual taxpayers selected using purposive sampling. This study used a questionnaire instrument and data analysis using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4, followed by the Analytical Hierarchy Process (AHP) for strategy formulation. The empirical results show that perceived fairness) and trust in government are significant positive predictors of tax morale, whereas social norms are not a significant predictor). Tax morale is a significant positive predictor of tax compliance and mediates the relationships of perceived fairness and trust in government with tax compliance, but does not mediate the relationship between social norms and tax compliance. The model explains 61.9 percent of the variance in tax morale and 52.6 percent of the variance in tax compliance. The AHP results place trust in government as the priority criterion and strengthening the integrity and accountability of tax administration) as the priority strategy, followed by transparency and consistency of tax procedures). The implication of this research is that strengthening the integrity and accountability of tax administration and the transparency of tax procedures can serve as the foundation for building tax morale toward voluntary compliance.
Institution: Institut Bisnis dan Komunikasi Swadaya
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7225634889
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