Enhancing individual taxpayer compliance: the role of tax awareness, knowledge, and administrative sanctions

Abstract

Purpose: This research analyzes the factors that influence individual taxpayer compliance at KPP PJT, specifically focusing on taxpayer awareness, knowledge and understanding of taxation, and the impact of administrative sanctions.

Methods: The research employed a proportional sampling technique and utilized questionnaires as the primary data collection instrument. The questionnaires were rated on a Likert scale of 1 to 5. Data analysis was conducted using multiple linear regression analysis with SPSS version 21.

Findings: The results revealed that taxpayer awareness, as well as knowledge and understanding of taxation, positively affect tax compliance, with significance levels of 0.014 < 0.05 and 0.009 < 0.05, respectively; additionally, administrative sanctions significantly impact personal taxpayer compliance with a significance level of 0.000 < 0.05, collectively influencing tax compliance at KPP PJT with an overall significance level of 0.005 < 0.05.

Practical Implications: This research suggests that enhancing taxpayer awareness and knowledge of taxation can significantly improve compliance rates. Additionally, implementing effective administrative sanctions can further encourage compliance among individual taxpayers. These insights can assist policymakers in designing strategies and interventions to foster greater compliance among taxpayers.