BETWEEN JUSTICE AND COMPLEXITY: UNVEILING TAX MORALE IN PEKANBARU
DOI:
https://doi.org/10.23969/jrak.v17i2.31444Keywords:
small medium enterprises, system complexity, taxation, tax burden, tax justice, tax moraleAbstract
Taxation is a critical foundation for sustainable national growth, with tax morale serving as a key determinant of voluntary compliance. This study focuses on understanding tax morale by examining the effects of tax burden, system complexity, and tax justice. Primary data were collected from 100 Micro, Small, and Medium Enterprises (MSMEs) through an e-questionnaire using purposive sampling and analyzed with SEM-PLS. The findings reveal that perceived tax fairness exerts a positive and significant influence on tax morale, while system complexity has a significant negative effect. In contrast, tax burden shows no significant impact. These results highlight that fairness and simplicity in the tax system shape taxpayer attitudes more strongly than nominal tax levels. The study suggests that tax administrators should streamline procedures, ensure a fair distribution of tax burdens, and build a tax structure that is more transparent and just.
Downloads
References
Adegbedzi, D. K., Gadzo, S. G., & Kportorgbi, H. K. 2025. Assessing the relative influence of deterrent sanctions, tax fairness perceptions, personal norms and fiscal exchange perceptions on rent income tax compliance in Ghana. African Journal of Accounting, Auditing and Finance, 9(1), 42–64.
Agusti, R. R., & and Rahman, A. F. 2023. Determinants of tax attitude in small and medium enterprises: Evidence from Indonesia. Cogent Business & Management, 10(1), 2160585. https://doi.org/10.1080/23311975.2022.2160585
Ajzen, I. 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.
Akhmadeev, R. G., KOSOV, M. E., Bykanova, O. A., Ekimova, K. V., Frumina, S. V., & PHILIPPOVA, N. V. 2016. Impact of Tax Burden on the Country’s Investments. Journal of Applied Economic Sciences, 11(5).
Aktaş Güzel, S., Özer, G., & Özcan, M. 2019. The effect of the variables of tax justice perception and trust in government on tax compliance: The case of Turkey. Journal of Behavioral and Experimental Economics, 78, 80–86. https://doi.org/https://doi.org/10.1016/j.socec.2018.12.006
Alabi, A. W., Atanda, F. A., Akintoye, I. R., & Kajola, S. G. 2024. Tax morale and taxpayers’ compliance among SMEs in Nigeria. Journal of Management World, 2, 68–78.
Alasfour, F., Samy, M., & Bampton, R. 2016. The determinants of tax morale and tax compliance: Evidence from Jordan. In Advances in taxation (pp. 125–171). Emerald Group Publishing Limited.
Alexander, P., & Balavac-Orlic, M. 2022. Tax morale: Framing and fairness. Economic Systems, 46(1), 100936. https://doi.org/https://doi.org/10.1016/j.ecosys.2021.100936
Anjarwi, A. W., T, S., Baridwan, Z., & Iqbal, S. 2025. The Deterrent Role of Social Norms on Tax Evasion in Indonesia. Deviant Behavior, 46(7), 927–946.
Annur, cindy mutia. 2023. Survei Indikator Politik: Kepercayaan Publik ke Ditjen Pajak meningkat pada Juni 2023. Https://Databoks.Katadata.Co.Id/. https://databoks.katadata.co.id/olahraga/statistik/461ef6753257c3c/survei-indikator-politik-kepercayaan-publik-ke-ditjen-pajak-meningkat-pada-juni-2023
Ashfiya, D. A. N. 2024. Kontribusi Pajak terhadap Pendapatan Negara Mencapai 80,32%. Https://Data.Goodstats.Id/. https://data.goodstats.id/statistic/kontribusi-pajak-terhadap-pendapatan-negara-mencapai-8032-7CfAY
Bayissa, G. 2021. How fairness perceptions affect tax compliance: the effect of procedural× distributive justice interaction on intention to pay taxes. Available at SSRN 3986114.
Belahouaoui, R., & Attak, E. H. 2024. Digital taxation, artificial intelligence and Tax Administration 3.0: improving tax compliance behavior–a systematic literature review using textometry (2016–2023). Accounting Research Journal, 37(2), 172–191.
Budiadnyani, N. P., Dewi, P. P. R. A., Arlita, I. G. A. D., Arta, P. S., Kusuma, J., & Kartikayanti, L. A. M. 2023. Sense of Nationalism As Moderation: Perception of Justice, Trust In The Government Relation To Tax Morale of Prospective Taxpayer. IPSC 2023: Proceedings of the 5th International Public Sector Conference, IPSC 2023, October 10th-11th 2023, Bali, Indonesia, 82.
Buzohera, M. I. 2025. The Dynamics of Tax Compliance: How Attitudes, Social Influence, and Peer Effects Shape SME’s Compliance Behavior in Tanzania. Journal of Tax Reform, 11(1), 200–220.
Candra, S. A. 2024. Mengantar UMKM Naik Kelas, Beragam Fasilitas Pajak Diberikan Otoritas. Https://News.Ddtc.Co.Id/.
Castañeda, N. 2024. Fairness and Tax Morale in Developing Countries. Studies in Comparative International Development, 59(1), 113–137. https://doi.org/10.1007/s12116-023-09394-z
Celikay, F. 2020. Dimensions of tax burden: a review on OECD countries. Journal of Economics, Finance and Administrative Science, 25(49), 27–43. https://doi.org/10.1108/JEFAS-12-2018-0138
Cenvintius, D. 2024. The Influence Of Taxpayer Awareness And Tax Knowledge On Taxpayer Compliance In The Jabodetabek Area, With Financial Expertise As A Moderation Variable. Prosiding Konferensi Ilmiah Akuntansi XI, 11.
Cerka, P., Grigiene, J., & Venslovaityte, K. 2024. Tax Challenges Arising from Digitalization: Evaluating the Taxation Models Proposed by the European Commission and the OECD. Rev. Eur. & Comp. L., 58, 99.
Cochran, W. G. 1977. Sampling techniques. Johan Wiley & Sons Inc.
Diningrum, N., & Kurniawati, E. 2024. Political Connection And Tax Avoidance: Evidence From Two-Tier Board System In Indonesia. JRAK, 16(2), 327–336.
djkn.kemenkeu.go.id. 2022, December 6. Peran Penting UMKM dalam Ancaman Isu Resesi. Https://Www.Djkn.Kemenkeu.Go.Id/Kpknl-Balikpapan/Baca-Artikel/15677/Peran-Penting-UMKM-Dalam-Ancaman-Isu-Resesi.Html.
Dwi, D., Qomariah, N., & Martini, N. N. P. 2024. The roles of tax morale, tax fairness, and tax simplicity in enhancing tax compliance behavior through tax compliance intention at the Jember Tax Office. International Journal of Management Science and Information Technology, 4(2), 246–256.
Ellawule, A., Bashir, Y. M., Dalhat, B. S., & Suleiman, N. 2024. The Moderating Effect of Tax Knowledge on the Relationship between Tax Rates and Tax Compliance of MSMES in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 2(1), 118–133.
Faisol, M., & Norsain, N. 2024. Enhancing Tax Compliance Through Digital Transformation: Evidence From Corporate Taxpayers’usage Of E-Bupot. JRAK, 16(1), 159–168.
Faizal, S. M., Palil, M. R., Maelah, R., & Ramli, R. 2017. Perception on justice, trust and tax compliance behavior in Malaysia. Kasetsart Journal of Social Sciences, 38(3), 226–232.
Farooq, U., & Subhani, B. H. 2021. Three Corporate Finance Practices in Pakistan: A Review of Previous Studies and Way Forward. Journal of Finance and Accounting Research, 3(1), 61–84.
Fitria, R., Fionasari, D., & Sari, D. P. P. 2022. Pengaruh Kebijakan Insentif Pajak, Digitalisasi Pajak dan Sanksi Pajak Terhadap Kepatuhan Wajib Pajak UMKM. Jurnal IAKP: Jurnal Inovasi Akuntansi Keuangan & Perpajakan, 3(2), 139–150.
Fonseca Corona, F. J. 2024. Tax morale: a global scoping review from the cultural approach to economics. International Review of Economics, 71(2), 343–365. https://doi.org/10.1007/s12232-024-00446-x
Fu, X., & Zhang, X. 2025. Tax burden and enterprises’ ESG performance. International Review of Financial Analysis, 103, 104223. https://doi.org/https://doi.org/10.1016/j.irfa.2025.104223
Giray, F., Gerçek, A., & Aydoğdu, C. 2015. FACTORS DETERMINING TAXPAYERS’PERCEPTION TOWARDS TAX FAIRNESS: THE STRUCTURAL EQUATION MODEL FOR TURKEY. International Journal of Economics and Finance Studies, 7(1), 17–38.
Günay, H. F. 2025. What is the relationship between fairness and trust in terms of tax compliance? Journal of Public Finance and Public Choice, 40(1), 23–40.
Güzel, S. A., Özer, G., & Özcan, M. 2019. The effect of the variables of tax justice perception and trust in government on tax compliance: The case of Turkey. Journal of Behavioral and Experimental Economics, 78, 80–86.
Haggai, B., & Odunga, R. 2025. Moderating Effect of Tax Literacy on the Relationship Between Digitalization of Services and Turnover Tax Compliance among Textile Companies Nairobi County, Kenya. Journal of Finance and Accounting, 5(2), 24–36.
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. 2021. Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.
Horodnic, I. A. 2018. Tax morale and institutional theory: a systematic review. International Journal of Sociology and Social Policy, 38(9/10), 868–886.
Huang, L. 2024. Quantifying Taxation Policy Effectiveness: The Mediating Role of Big Data and the Moderating Influence of Digitalization. Journal of Internet Services and Information Security, 14(4), 100–115.
Hutagaol, L. 2025. The impact of the HPP law on changes in MSME income tax rates and modernization of the tax system on msme taxpayer compliance. International Journal of Business, Law, and Education, 6(1), 124–133.
Ibrahim, M., Musah, A., & Abdul-Hanan, A. 2015. Beyond enforcement: what drives tax morale in Ghana? Humanomics, 31(4), 399–414. https://doi.org/10.1108/H-04-2015-0023
Judijanto, L. 2024. Taxation Policy and Compliance Burden on MSMEs: An In-depth Legal Study in Indonesia. International Journal of Business, Law, and Education, 5(2), 1504–1597.
Kassa, E. T. 2021. Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers. Journal of Innovation and Entrepreneurship, 10(1), 8.
Kibona, M. H., & Goyayi, M. L. J. 2025. Effect of Electronic Filing (E-Filing) on Voluntary Tax Compliance in the Kinondoni Tax Region, Tanzania. African Journal of Empirical Research, 6(1), 702–712.
Kintu, I., Hisali, E., Bateganya, F., Lumala, P., Musoke, N., Nalwoga, W., & Kasim, S. 2025. Facilitation and voluntary tax compliance among micro, small and medium enterprises (MSMEs) in Uganda: testing the mediating effect of stakeholder collaboration. International Journal of Ethics and Systems.
Kirchler, E. 2007. The economic psychology of tax behaviour. Cambridge university press.
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.
Le, H. T. H., Tuyet, V. T. B., Hanh, C. T. B., & Do, Q. H. 2020. Factors affecting tax compliance among small-and medium-sized enterprises: Evidence from vietnam. The Journal of Asian Finance, Economics and Business, 7(7), 209–217.
Lima, R., Cunha, V. B. de C., & Nascimento, T. C. 2025. Brazilian entrepreneurs’ tax morale from an institutional perspective: evidence from the telecommunications sector. Journal of Entrepreneurship in Emerging Economies, 17(3), 546–572. https://doi.org/10.1108/JEEE-01-2024-0018
Martinez, A. L. 2025. Two-Way Tax Justice: How State and Taxpayer Rebuild Fiscal Trust. Available at SSRN 5371220.
McGee, R. W., Benk, S., Yüzbaşı, B., & Budak, T. 2020. Does religiosity affect attitudes toward the ethics of tax evasion? The case of Turkey. Religions, 11(9), 476.
Metalova, D., & Nenkova, P. 2021. Tax Revenue Structure and Its Components in Bulgaria: Where Does Tax Revenue Come From? Finance, Accounting and Business Analysis (FABA), 3(2), 120–130.
Michael, M., & Widjaja, W. 2024. Tax compliance in Indonesian MSMEs: Key factors explored. Jurnal Proaksi, 11(1), 143–157.
Michael, M., Widjaja, W., Sabil, S., & Wijayadne, D. R. 2025. Interaction of Tax Awareness, Attitude, and E-Tax Adoption in Improving Tax Compliance: A Study in Indonesia MSMEs. Global Business & Finance Review, 30(8), 121.
Mickiewicz, T., Rebmann, A., & Sauka, A. 2019. To pay or not to pay? Business owners’ tax morale: Testing a neo-institutional framework in a transition environment. Journal of Business Ethics, 157, 75–93.
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.
Okafor, O. N. 2023. Shaming of tax evaders: Empirical evidence on perceptions of retributive justice and tax Compliance intentions. Journal of Business Ethics, 182(2), 377–395.
Opanasenko, A. 2024. Tax burden and its distribution: approaches to determination. RFI Scientific Papers, 3 SE-ACCOUNTING AND TAXATION, 122–134. https://doi.org/10.33763/npndfi2024.03.122
Pagalung, G., & Habbe, H. 2021. Taxpayer Compliance in SME’s Sector: A Theory of Planned Behavior. PSYCHOLOGY AND EDUCATION, 58(1), 490–503.
Paientko, T., & Oparin, V.2020. Reducing the tax burden in Ukraine: Changing priorities. Central European Management Journal, 28, 98–126.
Pekanbaru.go.id. (2024). Jumlah Pelaku UMKM di Pekanbaru meningkat tahun ini.
Quamar, T., Anwar, A., & Hilali, A. 2025. Moroccan Taxpayers’ Perception of Tax Amnesties. In Modeling and Profiling Taxpayer Behavior and Compliance (pp. 185–208). IGI Global Scientific Publishing.
Rodríguez, V. M. C. 2015. La moral tributaria en América Latina y la corrupción como uno de sus determinantes. Revista Mexicana de Ciencias Políticas y Sociales, 60(224), 103–132.
Saidi, J., Iznillah, M. L., & Natariasari, R. 2025. Optimalisasi Pengelolaan Keuangan UMKM: Faktor Sistem Informasi Akuntansi, Literasi Keuangan, dan Persepsi Risiko. Jurnal Akuntansi Dan Ekonomika, 14(2). https://doi.org/10.37859/jae.v14i2.8196
Saptono, P. B., Mahmud, G., Salleh, F., Pratiwi, I., Purwanto, D., & Khozen, I. 2024. Tax complexity and firm tax evasion: A cross-country investigation. Economies, 12(5), 97.
Shepherd, D. A. 2019. Researching the dark side, downside, and destructive side of entrepreneurship: it is the compassionate thing to do! Academy of Management Discoveries, 5(3), 217–220.
Sholihin, M., & Ratmono, D. 2021. Analisis SEM-PLS dengan WarpPLS 7.0 untuk hubungan nonlinier dalam penelitian sosial dan bisnis. Penerbit Andi.
Siddy, A. 2024. Rendahnya Tax Ratio Indonesia Akibat Penerimaan Pajak Penghasilan Orang Pribadi yang Belum Optimal. Kompasiana.
Singh, H., Kar, A. K., & Vigneswara Ilavarasan, P. 2018. Adoption of e-Government services: a case study on e-Filing system of income tax department of India. In Operations Research in Development Sector (pp. 109–123). Springer.
Soufiene, A., Boukhatem, J., & Abbas, Q. 2024. What drives tax morale in selected North African economies? Empirical evidence from Algeria, Morocco and Tunisia using simulated ARDL and GMM quantile regressions. Regional Science Policy & Practice, 16(12), 100141. https://doi.org/https://doi.org/10.1016/j.rspp.2024.100141
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.
Timothy, J., & Abbas, Y. 2021. Tax morale, perception of justice, trust in public authorities, tax knowledge, and tax compliance: a study of Indonesian SMEs. EJTR, 19, 168.
Torgler, B., Demir, I. C., Macintyre, A., & Schaffner, M. 2008. Causes and consequences of tax morale: An empirical investigation. Economic Analysis and Policy, 38(2), 313–339.
Torgler, B., & Schneider, F. 2007. Shadow economy, tax morale, governance and institutional quality: a panel analysis.
Vincent, O. 2021. The development of a scale to measure SMEs tax compliance in Nigeria: An adaptation of Fischers model. Journal of Accounting and Taxation, 13(3), 132–143.
Widjaja, W., & Michael, M. 2024. Dynamics Of Tax Evasion In Indonesian Smes: Tax Rates, Self-Assessment Systems, And Tax Morale. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 9(01), 32–46.
Yossinomita, Y., & Hodijah, S. 2024. Determining the future direction and amount of tax revenue in Indonesia using an error correction model (ECM). Ekonomika, 103(1), 56–77.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Dwi Fionasari, Rama Gita Suci, Annie Mustika Putri, Muhammad Luthfi Iznillah
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
