THE EFFECT OF FISCAL COMPETENCE, TAX SOCIALIZATION AND TAX JUSTICE ON TAXPAYER COMPLIANCE

Abstract

Abstract— The tax ratio in Indonesia refers to the comparison between tax revenues and a country's Gross Domestic Product (GDP), indicating the size of the tax portion of the national economy. In recent years, Indonesia's tax ratio has tended to stagnate. The development of Indonesia's Tax Ratio in 2021 was 9.1%, in 2022 was 10.4%, in 2023 was 10.21% and in 2024 was 10.31%, lower than in 2023. This study aims to find empirical evidence of the influence of tax competence, tax socialization and tax fairness on taxpayer compliance. The sample selection technique in this study uses convenience sampling. Data processing using the Smart PLS program. The results of this study provide empirical evidence that tax competence and tax justice have no influence on taxpayer compliance, while tax socialization has an influence on taxpayer compliance. The implications of this research, tax officials can no longer act oppressively or arbitrarily against taxpayers. The digitalization of the tax system allows taxpayers to better understand and fulfill their tax obligations. The tax authorities' competence is no longer dominant, as taxpayers are given greater access compared to the old tax system. Through continuous tax outreach and easy access to tax information, taxpayers can access tax information via various platforms, which provides a sense of trust for taxpayers. Although there is a perception of injustice that triggers psychological impacts, such as dissatisfaction or an inability to see the correlation between tax payments and benefits received. Tax money is not used to save government companies, where there is a lot of mega-corruption that hurts the public as taxpayers.

Keywords: Taxpayer Compliance, Tax Competence, Tax Socialization, Tax Justice