The Effect Of Taxpayer Understanding, Tax Sanctions, And Taxpayer Awareness On Individual Taxpayer Compliance With Tax Digitalization As A Moderating Variable

This study is driven by the underachievement of the formal compliance ratio for Individual Taxpayers and inconsistencies in previous research findings. It aims to analyze the effects of taxpayer understanding, tax sanctions, taxpayer awareness, and tax digitalization on individual MSME taxpayer compliance in South Tangerang City, while examining the moderating role of tax digitalization. A quantitative approach with purposive sampling was employed. The sample consisted of 100 individual MSME taxpayers calculated using the Lemeshow formula. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. The results show that taxpayer understanding, tax sanctions, taxpayer awareness, and tax digitalization positively and significantly affect taxpayer compliance. Tax digitalization strengthens the impact of taxpayer understanding and tax sanctions on compliance, but fails to moderate the effect of taxpayer awareness on compliance. Practically, optimizing tax digitalization systems can enhance sanction enforcement and regulatory understanding to promote voluntary compliance.