Multi-Group Analysis of Incentive and Institutional Factors Associated with Individual Taxpayer Compliance in Indonesia
DOI:
https://doi.org/10.31098/pba.v4i2.4546Keywords:
Taxpayer Compliance, Multi-Group Analysis, PLS-SEM, Taxpayer Voice, Enforcement Effectiveness, Institutional TransparencyAbstract
This study examines the association between incentive factors (voice, empathy) and institutional factors (regulatory quality, enforcement effectiveness, transparency, accountability) and individual taxpayer compliance in Indonesia, and tests whether these associations differ by age, education, and income. Despite growing interest in behavioral and institutional determinants of compliance, few studies integrate both dimensions within a single model or test whether the resulting relationships hold consistently across demographic groups. Using a quantitative survey of 310 individual taxpayers, we analyzed the data with Structural Equation Modeling–Partial Least Squares (SEM-PLS) and Multi-Group Analysis (MGA). Results show that voice, empathy, regulatory quality, enforcement effectiveness, and transparency are significantly and positively associated with taxpayer compliance, while accountability is not, suggesting that perceptions of institutional accountability have not yet become a primary determinant of compliance. The model explains a substantial share of variance in taxpayer compliance. The Multi-Group Analysis indicates that these associations are largely, but not entirely, consistent across demographic groups: three of eighteen subgroup comparisons show statistically significant differences (enforcement effectiveness by income, p = .004; transparency by age, p = .016; accountability by income, p = .013), while the remaining comparisons show no significant difference. These findings suggest that taxpayer compliance is associated with a combination of incentive and institutional factors, with most associations holding broadly across demographic characteristics. However, exceptions exist for enforcement effectiveness, transparency, and accountability.
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Copyright (c) 2026 Astrid Isyana Biki, Ari Warokka, Oscar Jayanagara
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