Investigation on the Contributing Factors of Compliance with Online Transaction Tax: An Empirical Study on MSME Actors

Abstract

This study aims to analyze the factors that influence personal tax compliance in paying the income tax from online sales of MSME; namely tax policy; tax knowledge; tax sanctions; and tax incentives. This study adopted the attribution theory and used a quantitative approach employing a survey method by distributing the questionnaires related to paying online sales tax of the individual taxpayers running MSMEs. A total of 159 respondent data across Yogyakarta; Central Java; and Lampung; which met the criteria; were analyzed and tested using Structural Equation Modeling (SEM) with the help of SmartPLS 3.0. This study indicates that tax knowledge and tax sanctions have significant and positive effects on tax compliance; but tax policy has no significant effect on tax compliance. Likewise; tax incentives cannot moderate the relationships between tax policy; tax knowledge; tax sanctions; and tax compliance.