Moderation of risk preferences on factors influencing MSME taxpayer compliance in Indonesian digital transactions

Abstract: The advancement of digital technology encourages the growth of MSMEs transacting online. However, the phenomenon shows that the Indonesian tax ratio declines because the tax compliance increase rate does not accompany the potential tax base growth. This study analyzed the determining factors of tax compliance: tax knowledge, tax sanctions, peer influence, and the quality of tax authority services moderated by risk preferences. Because of the data analysis, it was discovered that only tax knowledge had a clear impact and risk preferences had no significant influence on the factors that influenced MSME tax compliance in digital transactions. Limited information circulating citizens about MSME-specific policies in digital commerce and rules that have not been communicated in online marketplaces are the main tasks for tax authorities in Indonesia. This study proposes a model of MSME's tax compliance in a digital transaction.

How to cite this paper

 Waluyo, W & Purnami, S. (2022). Moderation of risk preferences on factors influencing MSME taxpayer compliance in Indonesian digital transactions.Accounting, 8(3), 335-344.

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