Government Trust Moderates Tax Reform and Tax Knowledge Effects on Compliance Intention
Abstract
This study examines the effects of tax reform and tax knowledge on tax compliance intention and investigates the moderating role of government trust. The novelty of this research lies in the development of the tax knowledge construct by incorporating two additional dimensions, Technical Tax Knowledge and Knowledge of Tax Systems and Regulations, providing a more comprehensive measurement model. A quantitative approach was employed using primary data collected from 410 corporate taxpayers in Indonesia in 2026 through purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) after validity and reliability tests, followed by a sensitivity analysis. The findings reveal that tax reform (β = 0.242, p = 0.006) and tax knowledge (β = 0.291, p = 0.004) have positive and significant effects on tax compliance intention. Government trust does not moderate the relationship between tax reform and tax compliance intention (β = −0.080, p = 0.242), but significantly strengthens the effect of tax knowledge on tax compliance intention (β = 0.192, p = 0.002). The sensitivity analysis confirms that the proposed measurement model achieves a higher adjusted R² than the original model, demonstrating greater explanatory power and robustness.
References
Alm, J. (2019). What motivates tax compliance? Journal of Economic Surveys, 33(2), 353-388. https://doi.org/10.1111/joes.12272
Andreansyah, & Farina. (2022). Analisis Pengaruh Insentif Pajak, Sanksi Pajak, dan Pelayanan Pajak terhadap Kepatuhan Wajib Pajak UMKM. Jurnal Ekonomi & Ekonomi Syariah.
Batrancea, L., Nichita, A., Olsen, J., Kogler, C., Kirchler, E., Hoelzl, E., Weiss, A., Torgler, B., Fooken, J., Fuller, J., Schaffner, M., Banuri, S., Hassanein, M., Alarcón-García, G., Aldemir, C., Apostol, O., Bank Weinberg, D., Batrancea, I., Belianin, A., ... Zukauskas, S. (2019). Trust and power as determinants of tax compliance across 44 nations. Journal of Economic Psychology, 74, 102191. https://doi.org/10.1016/j.joep.2019.102191
Bellon, M., Dabla-Norris, E., Khalid, S., & Lima, F. (2022). Digitalization to improve tax compliance: Evidence from VAT e-Invoicing in Peru. Journal of Public Economics, 210, 104661. https://doi.org/10.1016/j.jpubeco.2022.104661
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. https://doi.org/10.3390/su141610217
Bornman, M., & Ramutumbu, P. (2019). A conceptual framework of tax knowledge. Meditari Accountancy Research, 27(6), 823-839. https://doi.org/10.1108/MEDAR-09-2018-0379
Bott, K. M., Cappelen, A. W., Sørensen, E. Ø., & Tungodden, B. (2020). You’ve got mail: A randomized field experiment on tax evasion. Management Science, 66(7), 2801-2819. https://doi.org/10.1287/mnsc.2019.3390
Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
Damanik. (2021). Pengaruh Sistem Administrasi Modern, Keadilan, Akuntabilitas, dan Sanksi Perpajakan terhadap Kepatuhan Wajib Pajak UMKM Kota Jambi. Journal of Economics and Business.
Darmayasa, I. N., & Hardika, N. S. (2024). Core tax administration system: The power and trust dimensions of slippery slope framework tax compliance model. Cogent Business & Management, 11(1), 2337358. https://doi.org/10.1080/23311975.2024.2337358
De Neve, J.-E., Imbert, C., Spinnewijn, J., Tsankova, T., & Luts, M. (2021). How to improve tax compliance? Evidence from population-wide experiments in Belgium. Journal of Political Economy, 129(5), 1425-1463. https://doi.org/10.1086/713096
Desi, et al. (2024). Literasi Pajak, Kesadaran Wajib Pajak, dan Sistem Administrasi Pajak Modern pada Kepatuhan Wajib Pajak. Jurnal Akuntansi Dan Bisnis.
Dung, N. N. K., Tuan, D. A., & Thao, B. T. T. (2023). Model for forecasting tax compliance behaviors for small and medium enterprises owners based on owning tax knowledge. Journal of Law and Sustainable Development, 11(4), e648. https://doi.org/10.55908/sdgs.v11i4.648
Fadhilatunisa, D., Dewantara, H., Isma, A., Ryketeng, M., & Hamdan, M. N. (2025). Unlocking tax compliance intention MSMEs: Exploring the roles of tax moral, incentives, and trust in government. Quantitative Economics and Management Studies, 6(2), 176-187. https://doi.org/10.35877/454RI.qems3873
Fišar, M., Reggiani, T., Sabatini, F., & Špalek, J. (2022). Media negativity bias and tax compliance: Experimental evidence. International Tax and Public Finance, 29(5), 1160-1212. https://doi.org/10.1007/s10797-021-09706-w
Fitria, G. N., Murwaningsari, E., & Mulyani, S. D. (2024). Does tax compliance intention mediate the determinant of tax compliance? Evidence from Indonesia. Revista de Gestão Social e Ambiental, 18(6), 1-24. https://doi.org/10.24857/rgsa.v18n6-056
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications.
Hauptman, L., Žmuk, B., & Pavić, I. (2024). Tax compliance in Slovenia: An empirical assessment of tax knowledge and fairness perception. Journal of Risk and Financial Management, 17(3), 89. https://doi.org/10.3390/jrfm17030089
Hien, N. T. T., Thao, B. T. T., & Tuan, D. A. (2025). Tax knowledge and tax compliance of the small and medium enterprises in Vietnam. International Journal of Innovative Research and Scientific Studies, 8(1), 886-898. https://doi.org/10.53894/ijirss.v8i1.4433
Hikmah, H., Adi, P. H., Supramono, S., & Damayanti, T. W. (2021). The nexus between attitude, social norms, intention to comply, financial performance, mental accounting and tax compliance behavior. Asian Economic and Financial Review, 11(12), 938-949. https://doi.org/10.18488/journal.aefr.2021.1112.938.949
Hikmah, H., Ratnawati, A. T., & Darmanto, S. (2024). Determinants of tax compliance behavior among Central Java SMEs: The mediating role of intention to comply. Journal of Accounting and Investment, 25(1), 328-347. https://doi.org/10.18196/jai.v25i1.20226
Horodnic, I. A. (2018). Tax morale and institutional theory: A systematic review. International Journal of Sociology and Social Policy, 38(9/10), 868-886. https://doi.org/10.1108/IJSSP-03-2018-0039
Inasius, F., Darijanto, G., Gani, E., & Soepriyanto, G. (2020). Tax compliance after the implementation of tax amnesty in Indonesia. SAGE Open, 10(4), 1-10. https://doi.org/10.1177/2158244020968793
Kochanova, A., Hasnain, Z., & Larson, B. (2020). Does e-government improve government capacity? Evidence from tax compliance costs, tax revenue, and public procurement competitiveness. The World Bank Economic Review, 34(1), 101-120. https://doi.org/10.1093/wber/lhx024
Manullang, & Marfiana. (2023). Analisis pengaruh perception of fairness dan trust in government terhadap voluntary tax compliance dengan pemoderasi religiusitas. Jurnal Pajak Dan Keuangan Negara, 39-52.
Night, S., & Bananuka, J. (2020). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25(49), 73-88. https://doi.org/10.1108/JEFAS-07-2018-0066
Nkundabanyanga, S. K., Mvura, P., Nyamuyonjo, D., Opiso, J., & Nakabuye, Z. (2017). Tax compliance in a developing country: Understanding taxpayers’ compliance decision by their perceptions. Journal of Economic Studies, 44(6), 931-957. https://doi.org/10.1108/JES-03-2016-0061
Okunogbe, O., & Pouliquen, V. (2022). Technology, taxation, and corruption: Evidence from the introduction of electronic tax filing. American Economic Journal: Economic Policy, 14(1), 341-372. https://doi.org/10.1257/pol.20200123
Ramadhan, et al. (2021). Pengaruh sosialisasi perpajakan terhadap niat untuk mematuhi kewajiban perpajakan calon wajib pajak dengan kesadaran pajak sebagai variabel intervening. Jurnal Perpajakan.
Rawun, Y., Murwaningsari, E., & Aryati, T. (2026). Trust, tax complexity, and digital transformation: Determinants of tax compliance. Moestopo International Review on Social, Humanities, and Sciences, 6(1), 185-200. https://doi.org/10.32509/mirshus.v6i1.172
Taing, H. B., & Chang, Y. (2021). Determinants of tax compliance intention: Focus on the theory of planned behavior. International Journal of Public Administration, 44(1), 62-73. https://doi.org/10.1080/01900692.2020.1728313
Tsikas, S. A. (2020). Enforce taxes, but cautiously: Societal implications of the slippery slope framework. European Journal of Law and Economics, 50(1), 149-170. https://doi.org/10.1007/s10657-020-09660-8
Copyright (c) 2026 Idar Rachmatulloh, Etty Murwaningsari, Titik Aryati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain the copyright and full publishing rights of their articles without restrictions. Authors grant Moestopo International Review on Social, Humanities, and Sciences (MIRSHuS) the non-exclusive right of first publication.
