Determinants of SME tax compliance: The intervening role of tax awareness in Jakarta

https://doi.org/10.35912/ahrmr.v5i3.3814
Published: Sep 29, 2025

Abstract:

Purpose: This study examines the determinants of tax compliance among Small and Medium Enterprises (SMEs) in DKI Jakarta by testing tax awareness as an intervening variable.

Research Methodology: This research was conducted in DKI Jakarta, Indonesia, using a quantitative approach. Primary data were collected using a structured questionnaire administered to SME taxpayers. The conceptual model is grounded in Attribution Theory, the Theory of Planned Behavior (TPB), the Technology Acceptance Model (TAM), and Institutional Theory. This study evaluates the effects of tax knowledge, e-filing tax systems, tax authority service quality, and tax law enforcement on tax awareness and compliance. Data were analyzed using Partial Least Squares structural equation modeling (PLS-SEM) with dedicated PLS-SEM software (brand/version not specified).

Results: The findings indicate that tax knowledge, the e-filing tax system, tax authority service quality, and tax law enforcement have positive and significant direct effects on tax awareness and compliance. Tax awareness also has a positive and significant effect on tax compliance and mediates the relationship between the four antecedent factors and tax compliance.

Conclusions: Strengthening SME tax compliance requires improvements in knowledge, digital tax processes, service quality, and enforcement, while tax awareness functions as a key mechanism linking these factors to compliance

Limitations: This study uses cross-sectional, self-reported survey data from SMEs in one province, which may limit generalizability and causal inference.

Contribution: This study integrates behavioral, technological, and institutional perspectives and provides practical input for the Directorate General of Taxes to enhance voluntary awareness-based compliance among SMEs.

Keywords:
1. E-Filing
2. SMEs
3. Tax Compliance
4. Tax Awareness
5. Tax Law Enforcement
Authors:
1 . Sri Rusiyati
Universitas Nusa Mandiri, Jakarta Timur, Indonesia
2 . Kurniawati Mulyanti
Universitas Islam 45, Bekasi, Jawa Barat, Indonesia
3 . Instianti Elyana
Universitas Nusa Mandiri, Depok, Jawa Barat, Indonesia
4 . Tia Ichwani
Universitas Pancasila, Jakarta Selatan, Indonesia
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How to Cite
Rusiyati, S., Mulyanti, K. ., Elyana, I., & Ichwani, T. . (2025). Determinants of SME tax compliance: The intervening role of tax awareness in Jakarta. Annals of Human Resource Management Research, 5(3), 387–401. https://doi.org/10.35912/ahrmr.v5i3.3814
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Vol. 5 No. 3 (2025): September
Articles
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References

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    Abu-Silake, S. A., Alshurafat, H., Alaqrabawi, M., & Shehadeh, M. (2024). Exploring the key factors influencing the actual usage of digital tax platforms. Discover Sustainability, 5(1), 88. doi:https://doi.org/10.1007/s43621-024-00241-2

    Adem, M., Desta, T., & Girma, B. (2024). Determinants of tax compliance behavior: A case study in Ethiopia. Sage Open, 14(4), 1-15. doi:https://doi.org/10.1177/21582440241292869

    Ajzen, I. (1991). The Theory of Planned Behaviour. Organizational Behavior and Human Decision Processes, 50, 179-211. doi:https://doi.org/10.1016/0749-5978(91)90020-T

    Arham, A., & Firmansyah, A. (2021). The role of behavioral theory in the research of msmes tax compliance in Indonesia. Riset: Jurnal Aplikasi Ekonomi Akuntansi Dan Bisnis, 3(1), 417-432. doi:https://doi.org/10.37641/riset.v3i1.71

    Artanti, N. P., Saleh, A. M., & Prasetyo, B. D. (2025). Pursuing Public Trust: Tax Reform Communication during the Indonesian Government Transition. ETTISAL: Journal of Communication, 10(2), 211-244. doi:https://doi.org/10.21111/ettisal.v10i02.13

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    Cai, C., Zhou, L., & Liu, D. (2025). Dynamic relationship between tax reputation, digital transformation, and corporate tax compliance in financial markets. International Review of Financial Analysis, 104. doi:https://doi.org/10.1016/j.irfa.2025.104258

    Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS quarterly, 13(3), 319-340. doi:https://doi.org/10.2307/249008

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    Kushwah, S. V., Nathani, N., & Vigg, M. (2021). Impact of tax knowledge, tax penalties, and E-filing on tax compliance in India. Indian Journal of Finance, 15(5-7), 61-74. doi:https://doi.org/10.17010/ijf/2021/v15i5-7/164493

    Lamidi, W. A., Olowookere, J. K., Saad, R. A. J., & Ahmi, A. (2023). An assessment of the factors influencing adoption of e-filing system in Nigeria. International Journal of Business Information Systems, 42(1), 1-22. doi:https://doi.org/10.1504/IJBIS.2023.128299

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    Le, H. T. D., Bui, M. T., & Nguyen, G. T. C. (2021). Factors affecting electronic tax compliance of small and medium enterprises in Vietnam. The Journal of Asian Finance, Economics and Business, 8(1), 823-832. doi:https://doi.org/10.13106/jafeb.2021.vol8.no1.823

    Le, T. N. T., Hai, Y. M. T., Thi, T. C., & Hong, M. N. T. (2024). The Impact of Tax Awareness on Tax Compliance: Evidence from Vietnam. Journal of Tax Reform, 10(2), 214-227. doi:https://doi.org/10.15826/jtr.2024.10.2.165

    Mas' ud, A., Manaf, N. A. A., Saad, N., & Pantamee, A. A. (2024). Extending UTAUT through moderating effects of trust-an insights from electronic tax filing adoption among micro-entrepreneurs in merchandising sector. International Journal of Business Information Systems, 46(2), 238-257. doi:https://doi.org/10.1504/IJBIS.2024.139879

    Mbilla, S. A. E. (2023). Social drivers and tax revenue: The mediation effect of tax compliance. Evidence from an emerging economy. Cogent Economics & Finance, 11(2). doi:https://doi.org/10.1080/23322039.2023.2285638

    Ndlovu, M. O., & Schutte, D. P. (2024). An evaluation of tax compliance among small businesses. South African Journal of Accounting Research, 40(1), 1-19. doi:https://doi.org/10.1080/10291954.2024.2372132

    Nurlela, I., Kurniawan, A., & Umiyati, I. (2021). The effect of awareness, morality, tax culture, and distributive justice on the taxpayer compliance. Accruals (Accounting Research Journal of Sutaatmadja), 5(01), 112-129. doi:https://doi.org/10.35310/accruals.v5i01.699

    Nurlis, N., & Ariani, M. (2020). Tax awareness moderates knowledge and modernization of tax administration on tax compliance, survey on MSME taxpayers in South Tangerang City, Indonesia. International Journal of Management Studies and Scoial Science Research, 2(5), 250-259.

    Ojo, A. O., & Shittu, S. A. (2023). Value added tax compliance, and small and medium enterprises (SMEs): Analysis of influential factors in Nigeria. Cogent Business & Management, 10(2). doi:https://doi.org/10.1080/23311975.2023.2228553

    Purba, H. (2020). Effect Of E-Filing System Implementation and Tax Knowledge On Taxpayer Compliance With Account Representative Services As Mediation Variable. EPRA International Journal of Research and Development, 5(10), 66-80. doi:https://doi.org/10.36713/epra4508

    Rokhman, A., Handoko, W., Tobirin, T., Antono, A., Kurniasih, D., & Sulaiman, A. (2023). The effects of e-government, e-billing and e-filing on taxpayer compliance: A case of taxpayers in Indonesia. International Journal of Data and Network Science, 7(1), 49-56. doi:http://doi.org/10.5267/j.ijdns.2022.12.007

    Sanusi, S., Omar, N., Mohd Sanusi, Z., & Muslichah, I. (2021). The application of the responsive regulation theory on indirect tax compliance among small and medium enterprises in Malaysia. Management & Accounting Review (MAR), 20(2), 137-160.

    Wibowo, H., & Mauritsius, T. (2022). Factors That Affect The E-Filling Usage In Indonesia: An Extension Of Technology Acceptance Model And Theory Of Planned Behavior. Journal of Theoretical and Applied Information Technology, 100(7), 2169-2180.

    Yabré, T., Loaba, S., & Semedo, G. (2025). Tax Revenue Mobilization in Developing Countries: Do We Need More Political Veto Players? International Journal of Public Administration, 1-21. doi:https://doi.org/10.1080/01900692.2025.2485258

  1. AbdulKareem, A. K., & Oladimeji, K. A. (2024). Cultivating the digital citizen: trust, digital literacy and e-government adoption. Transforming Government: People, Process and Policy, 18(2), 270-286. doi:https://doi.org/10.1108/TG-11-2023-0196
  2. Abu-Silake, S. A., Alshurafat, H., Alaqrabawi, M., & Shehadeh, M. (2024). Exploring the key factors influencing the actual usage of digital tax platforms. Discover Sustainability, 5(1), 88. doi:https://doi.org/10.1007/s43621-024-00241-2
  3. Adem, M., Desta, T., & Girma, B. (2024). Determinants of tax compliance behavior: A case study in Ethiopia. Sage Open, 14(4), 1-15. doi:https://doi.org/10.1177/21582440241292869
  4. Ajzen, I. (1991). The Theory of Planned Behaviour. Organizational Behavior and Human Decision Processes, 50, 179-211. doi:https://doi.org/10.1016/0749-5978(91)90020-T
  5. Arham, A., & Firmansyah, A. (2021). The role of behavioral theory in the research of msmes tax compliance in Indonesia. Riset: Jurnal Aplikasi Ekonomi Akuntansi Dan Bisnis, 3(1), 417-432. doi:https://doi.org/10.37641/riset.v3i1.71
  6. Artanti, N. P., Saleh, A. M., & Prasetyo, B. D. (2025). Pursuing Public Trust: Tax Reform Communication during the Indonesian Government Transition. ETTISAL: Journal of Communication, 10(2), 211-244. doi:https://doi.org/10.21111/ettisal.v10i02.13
  7. Au, L. T. N., Hoang, H. T., & Ho, L. T. H. (2023). Tax service quality for enterprises: development of a valid measurement scale. Asia-Pacific Journal of Business Administration, 15(3), 345-360. doi:https://doi.org/10.1108/APJBA-01-2021-0033
  8. Bhalla, N., Sharma, R. K., & Kaur, I. (2022). Effect of tax knowledge and technological shift in tax system on business performance: A PLS-SEM analysis. Sustainability, 14(16), 10217. doi:https://doi.org/10.3390/su141610217
  9. Cai, C., Zhou, L., & Liu, D. (2025). Dynamic relationship between tax reputation, digital transformation, and corporate tax compliance in financial markets. International Review of Financial Analysis, 104. doi:https://doi.org/10.1016/j.irfa.2025.104258
  10. Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS quarterly, 13(3), 319-340. doi:https://doi.org/10.2307/249008
  11. Hamilah, H., & Aliza, S. (2021). the Influence of the E-Filing Implementation, Taxation Socialization, and Tax Penalties on Individual Taxpayer Compliance in Kpp Pratama Jakarta Timur. The Influence Of The E-Filing Implementation, Taxation Socialization, And Tax Penalties On Individual Taxpayer Compliance In Kpp Pratama Jakarta Timur, 3(2), 343-358. doi:https://doi.org/10.31933/dijms.v3i2
  12. Jarwa, T., Ratnawati, T., & Nugroho, M. (2021). Tax Compliance Modeling Regarding Individual Characteristics, Information Technology Knowledge And Sanctions On Taxpayer Awareness, Ability, Willingness And Compliance As Impacts Of The Development Of The Central Busines District Of Surabaya City. PalArch's Journal of Archaeology of Egypt/Egyptology, 18(7).
  13. Kurniawan, I., & Daito, A. (2021). The effect of tax sanctions and tax authorities services on tax compliance and taxpayer awareness as moderation variable (survey on corporate taxpayers domiciled in tangerang). Dinasti International Journal of Management Science, 2(3), 371-380. doi:https://doi.org/10.31933/dijms.v2i3
  14. Kushwah, S. V., Nathani, N., & Vigg, M. (2021). Impact of tax knowledge, tax penalties, and E-filing on tax compliance in India. Indian Journal of Finance, 15(5-7), 61-74. doi:https://doi.org/10.17010/ijf/2021/v15i5-7/164493
  15. Lamidi, W. A., Olowookere, J. K., Saad, R. A. J., & Ahmi, A. (2023). An assessment of the factors influencing adoption of e-filing system in Nigeria. International Journal of Business Information Systems, 42(1), 1-22. doi:https://doi.org/10.1504/IJBIS.2023.128299
  16. Lancee, B., Rossel, L., & Kasper, M. (2023). When the agency wants too much: Experimental evidence on unfair audits and tax compliance. Journal of Economic Behavior & Organization, 214, 406-442. doi:https://doi.org/10.1016/j.jebo.2023.08.011
  17. Le, H. T. D., Bui, M. T., & Nguyen, G. T. C. (2021). Factors affecting electronic tax compliance of small and medium enterprises in Vietnam. The Journal of Asian Finance, Economics and Business, 8(1), 823-832. doi:https://doi.org/10.13106/jafeb.2021.vol8.no1.823
  18. Le, T. N. T., Hai, Y. M. T., Thi, T. C., & Hong, M. N. T. (2024). The Impact of Tax Awareness on Tax Compliance: Evidence from Vietnam. Journal of Tax Reform, 10(2), 214-227. doi:https://doi.org/10.15826/jtr.2024.10.2.165
  19. Mas' ud, A., Manaf, N. A. A., Saad, N., & Pantamee, A. A. (2024). Extending UTAUT through moderating effects of trust-an insights from electronic tax filing adoption among micro-entrepreneurs in merchandising sector. International Journal of Business Information Systems, 46(2), 238-257. doi:https://doi.org/10.1504/IJBIS.2024.139879
  20. Mbilla, S. A. E. (2023). Social drivers and tax revenue: The mediation effect of tax compliance. Evidence from an emerging economy. Cogent Economics & Finance, 11(2). doi:https://doi.org/10.1080/23322039.2023.2285638
  21. Ndlovu, M. O., & Schutte, D. P. (2024). An evaluation of tax compliance among small businesses. South African Journal of Accounting Research, 40(1), 1-19. doi:https://doi.org/10.1080/10291954.2024.2372132
  22. Nurlela, I., Kurniawan, A., & Umiyati, I. (2021). The effect of awareness, morality, tax culture, and distributive justice on the taxpayer compliance. Accruals (Accounting Research Journal of Sutaatmadja), 5(01), 112-129. doi:https://doi.org/10.35310/accruals.v5i01.699
  23. Nurlis, N., & Ariani, M. (2020). Tax awareness moderates knowledge and modernization of tax administration on tax compliance, survey on MSME taxpayers in South Tangerang City, Indonesia. International Journal of Management Studies and Scoial Science Research, 2(5), 250-259.
  24. Ojo, A. O., & Shittu, S. A. (2023). Value added tax compliance, and small and medium enterprises (SMEs): Analysis of influential factors in Nigeria. Cogent Business & Management, 10(2). doi:https://doi.org/10.1080/23311975.2023.2228553
  25. Purba, H. (2020). Effect Of E-Filing System Implementation and Tax Knowledge On Taxpayer Compliance With Account Representative Services As Mediation Variable. EPRA International Journal of Research and Development, 5(10), 66-80. doi:https://doi.org/10.36713/epra4508
  26. Rokhman, A., Handoko, W., Tobirin, T., Antono, A., Kurniasih, D., & Sulaiman, A. (2023). The effects of e-government, e-billing and e-filing on taxpayer compliance: A case of taxpayers in Indonesia. International Journal of Data and Network Science, 7(1), 49-56. doi:http://doi.org/10.5267/j.ijdns.2022.12.007
  27. Sanusi, S., Omar, N., Mohd Sanusi, Z., & Muslichah, I. (2021). The application of the responsive regulation theory on indirect tax compliance among small and medium enterprises in Malaysia. Management & Accounting Review (MAR), 20(2), 137-160.
  28. Wibowo, H., & Mauritsius, T. (2022). Factors That Affect The E-Filling Usage In Indonesia: An Extension Of Technology Acceptance Model And Theory Of Planned Behavior. Journal of Theoretical and Applied Information Technology, 100(7), 2169-2180.
  29. Yabré, T., Loaba, S., & Semedo, G. (2025). Tax Revenue Mobilization in Developing Countries: Do We Need More Political Veto Players? International Journal of Public Administration, 1-21. doi:https://doi.org/10.1080/01900692.2025.2485258