Tax Administration Modernization

Oct 13, 2025 by talynt.org 114 views

Effect of Tax Sanctions, Modernization of Tax Administration, Information Openness, and Tax Socialization on Personal Taxpayer Compliance in Annual SPT Reporting (PPH 21) at KPP Pratama Barat Medan

Introduction

The Indonesian government has been implementing various policies to increase taxpayer compliance, particularly in reporting Annual Tax Returns (SPT) in Medan City. One of the key challenges faced by the government is to ensure that taxpayers comply with their tax obligations, which is essential for generating revenue and maintaining a trust climate between taxpayers and the government. This study aims to analyze the influence of several variables, namely taxation sanctions, tax administration modernization, information disclosure, and taxation socialization on the level of individual taxpayer compliance in reporting the Annual Return (SPT) in Medan, especially for taxpayers registered at West Medan Pratama Tax Office.

Background

The Indonesian tax system is based on a self-assessment system, where taxpayers are required to report their income and pay taxes on a voluntary basis. However, the tax compliance rate in Indonesia is still relatively low, with many taxpayers failing to report their income or pay taxes on time. This has resulted in significant revenue losses for the government and has created a trust deficit between taxpayers and the government. To address this issue, the government has been implementing various policies to increase taxpayer compliance, including the use of taxation sanctions, tax administration modernization, information disclosure, and taxation socialization.

Methodology

This study used a quantitative approach, with a sample size of 100 taxpayers selected using accidental sampling. The data was collected through a survey using a questionnaire that consisted of 21 questions. The data was then analyzed using multiple regression analysis methods with the help of IBM SPSS Statistic 25 software.

Results

The results of the analysis showed that tax sanctions variables, tax administration modernization, information disclosure, and tax socialization significantly affect taxpayer compliance in reporting Annual Tax Returns in Medan City. The findings of this study are as follows:

Tax Sanctions

Tax sanctions imposed on tax violations, both administrative and criminal, are a driving factor for taxpayers to comply with their tax obligations. Non-compliance can result in significant fines, so that many taxpayers tend to choose to be obedient to avoid these sanctions. The results of this study showed that tax sanctions have a significant positive effect on taxpayer compliance, with a coefficient of 0.35. This suggests that taxpayers who are aware of the tax sanctions imposed on non-compliance are more likely to comply with their tax obligations.

Tax Administration Modernization

The modernization process in tax administration, such as the use of information technology to facilitate reporting and payment of taxes, plays a major role in increasing compliance. A more efficient and transparent system makes it easy for taxpayers to fulfill their obligations. The results of this study showed that tax administration modernization has a significant positive effect on taxpayer compliance, with a coefficient of 0.32. This suggests that taxpayers who are aware of the modernization efforts made by the tax administration are more likely to comply with their tax obligations.

Information Disclosure

Information disclosure is important so that taxpayers feel supported in the reporting process. The results of this study showed that information disclosure has a significant positive effect on taxpayer compliance, with a coefficient of 0.29. This suggests that taxpayers who are aware of the information provided by the tax administration are more likely to comply with their tax obligations.

Tax Socialization

A good socialization program will increase the interest of taxpayers to report taxes in a timely and accurate manner. The results of this study showed that tax socialization has a significant positive effect on taxpayer compliance, with a coefficient of 0.26. This suggests that taxpayers who are aware of the socialization efforts made by the tax administration are more likely to comply with their tax obligations.

Conclusion

The results of this study suggest that tax sanctions, tax administration modernization, information disclosure, and tax socialization are all significant factors that affect taxpayer compliance in reporting Annual Tax Returns in Medan City. The findings of this study have important implications for policymakers and tax administrators, as they suggest that a combination of these factors can be used to increase taxpayer compliance. By implementing effective tax policies and providing support to taxpayers, the government can increase taxpayer compliance and generate revenue for the state.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should continue to implement tax sanctions to deter non-compliance and encourage taxpayers to fulfill their obligations.
The tax administration should continue to modernize its systems and processes to make it easier for taxpayers to report and pay taxes.
The tax administration should provide more information to taxpayers to support them in the reporting process.
The tax administration should continue to socialize its policies and procedures to taxpayers to increase their awareness and understanding of their tax obligations.

Limitations

This study has several limitations that should be noted. Firstly, the sample size was relatively small, which may limit the generalizability of the findings. Secondly, the study only focused on taxpayers in Medan City, which may not be representative of taxpayers in other cities or regions. Finally, the study only analyzed the effect of tax sanctions, tax administration modernization, information disclosure, and tax socialization on taxpayer compliance, and did not consider other factors that may also affect compliance.

Future Research

Future research should aim to build on the findings of this study by exploring other factors that affect taxpayer compliance. For example, research could be conducted to examine the effect of taxpayer awareness, taxpayer education, and taxpayer engagement on compliance. Additionally, research could be conducted to examine the effect of different tax policies and regulations on compliance. By exploring these factors, researchers can gain a better understanding of the complex factors that affect taxpayer compliance and develop more effective policies to increase compliance.
Frequently Asked Questions (FAQs) on the Effect of Tax Sanctions, Modernization of Tax Administration, Information Openness, and Tax Socialization on Personal Taxpayer Compliance in Annual SPT Reporting (PPH 21) at KPP Pratama Barat Medan

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the influence of several variables, namely taxation sanctions, tax administration modernization, information disclosure, and taxation socialization on the level of individual taxpayer compliance in reporting the Annual Return (SPT) in Medan, especially for taxpayers registered at West Medan Pratama Tax Office.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the factors that affect taxpayer compliance in reporting Annual Tax Returns in Medan City. The findings of this study can be used by policymakers and tax administrators to develop more effective tax policies and improve taxpayer compliance.

Q: What are the variables that were analyzed in this study?

A: The variables that were analyzed in this study include taxation sanctions, tax administration modernization, information disclosure, and taxation socialization.

Q: What is the relationship between taxation sanctions and taxpayer compliance?

A: The results of this study showed that taxation sanctions have a significant positive effect on taxpayer compliance. This suggests that taxpayers who are aware of the tax sanctions imposed on non-compliance are more likely to comply with their tax obligations.

Q: What is the role of tax administration modernization in increasing taxpayer compliance?

A: The modernization process in tax administration, such as the use of information technology to facilitate reporting and payment of taxes, plays a major role in increasing compliance. A more efficient and transparent system makes it easier for taxpayers to fulfill their obligations.

Q: How does information disclosure affect taxpayer compliance?

A: The results of this study showed that information disclosure has a significant positive effect on taxpayer compliance. This suggests that taxpayers who are aware of the information provided by the tax administration are more likely to comply with their tax obligations.

Q: What is the impact of tax socialization on taxpayer compliance?

A: The results of this study showed that tax socialization has a significant positive effect on taxpayer compliance. This suggests that taxpayers who are aware of the socialization efforts made by the tax administration are more likely to comply with their tax obligations.

Q: What are the implications of this study for policymakers and tax administrators?

A: The findings of this study have important implications for policymakers and tax administrators. They suggest that a combination of taxation sanctions, tax administration modernization, information disclosure, and tax socialization can be used to increase taxpayer compliance.

Q: What are the limitations of this study?

A: This study has several limitations that should be noted. Firstly, the sample size was relatively small, which may limit the generalizability of the findings. Secondly, the study only focused on taxpayers in Medan City, which may not be representative of taxpayers in other cities or regions. Finally, the study only analyzed the effect of taxation sanctions, tax administration modernization, information disclosure, and tax socialization on taxpayer compliance, and did not consider other factors that may also affect compliance.

Q: What are the recommendations of this study?

A: Based on the findings of this study, the following recommendations are made:

The government should continue to implement tax sanctions to deter non-compliance and encourage taxpayers to fulfill their obligations.
The tax administration should continue to modernize its systems and processes to make it easier for taxpayers to report and pay taxes.
The tax administration should provide more information to taxpayers to support them in the reporting process.
The tax administration should continue to socialize its policies and procedures to taxpayers to increase their awareness and understanding of their tax obligations.

Q: What are the future research directions?

A: Future research should aim to build on the findings of this study by exploring other factors that affect taxpayer compliance. For example, research could be conducted to examine the effect of taxpayer awareness, taxpayer education, and taxpayer engagement on compliance. Additionally, research could be conducted to examine the effect of different tax policies and regulations on compliance.