Voluntary Tax Compliance in the Digital Transformation Era
Rissa Anandita (1), Raden Roro Diana Atika Ghozali (2), Naila Hanum (3), Gabrielle Selma Jonetta Silalahi (4)

Tax Accounting Study Program, Universitas Diponegoro

Abstract

The rapid advancement of digital taxation systems has significantly transformed the tax compliance landscape, particularly among technologically adept Generation Z. This study empirically investigates the influence of digital taxation, financial literacy, and trust in tax authorities on voluntary tax compliance among Generation Z in Indonesia in 2024. The research population comprises Generation Z workers, with a sample size of 123 respondents selected through purposive sampling. A quantitative approach utilizing Structural Equation Modeling (SEM) was employed for data analysis. Data was collected via an online survey distributed to Generation Z workers across various regions in Indonesia. The findings reveal that financial literacy and trust in tax authorities significantly influence voluntary tax compliance. The analysis demonstrates that effective implementation of digital taxation substantially enhances tax compliance, aligning with the observed improvements in financial literacy within this generation. Interestingly, trust in tax authorities was not proven to exert a statistically significant impact on tax compliance among Generation Z workers. These results underscore the critical role of digital infrastructure and financial education in fostering compliance, while highlighting the need for further exploration into the dynamics of institutional trust in contemporary tax systems.

Keywords: Digital Taxation, Financial Literacy, Trust in Tax Authorities, Tax Compliance, Generation Z.

Topic: Taxation