The Impact Of Digital Tax Literacy On Tax Compliance: The Moderating Role Of Institutional Trust
DOI:
https://doi.org/10.55587/ijbe.v1i3.383Keywords:
Digital tax literacy, Tax compliance, Institutional trustAbstract
Purpose: This study aims to empirically examine how institutional trust modulates the influence of digital tax literacy on tax compliance.
Method: Employing a quantitative research design, primary data were collected via a structured survey from a sample of 168 individual taxpayers and analyzed using hierarchical moderated regression analysis (MRA) with robust Huber–White–Hinkley standard errors to address heteroskedasticity.
Finding: The empirical findings reveal that digital tax literacy has a positive and statistically significant direct effect on tax compliance. Crucially, institutional trust independently exerts a positive effect on compliance but acts as a Quasi Moderator that significantly weakens the positive relationship between digital tax literacy and tax compliance, exposing a substitution and cognitive redundancy effect where high trust reduces the marginal necessity of technical competence. Conversely, digital literacy becomes a critical safeguard to sustain compliance when trust is low.
Novelty: The novelty of this research lies in empirically identifying this unexpected substitution effect, challenging the conventional assumption that institutional trust uniformly amplifies technological capabilities in fiscal compliance.
References
Abu-Silake, S. A., Alshurafat, H., Alaqrabawi, M., & Shehadeh, M. (2024). Exploring the key factors influencing the actual usage of digital tax platforms. Discover Sustainability, 5(1). https://doi.org/10.1007/s43621-024-00241-2
Adelakun, B. O. (2023). How Technology Can Aid Tax Compliance in the Us Economy. Journal of Knowledge Learning and Science Technology ISSN 2959-6386 (Online), 2(2), 491–499. https://doi.org/10.60087/jklst.vol2.n2.p499
Adelakun, B. O., Nembe, J. K., Oguejiofor, B. B., Akpuokwe, C. U., & Bakare, S. S. (2024a). Legal Frameworks And Tax Compliance In The Digital Economy: A Finance Perspective. International Journal of Advanced Economics, 6(3), 26–35. https://doi.org/10.51594/ijae.v6i3.900
Adelakun, B. O., Nembe, J. K., Oguejiofor, B. B., Akpuokwe, C. U., & Bakare, S. S. (2024b). Legal Frameworks And Tax Compliance In The Digital Economy: A Finance Perspective. Engineering Science & Technology Journal, 5(3), 844–853. https://doi.org/10.51594/estj.v5i3.922
Adelekan, O. A., Adisa, O., Ilugbusi, B. S., Chimezie, O., Awonuga, K. F., Asuzu, O. F., & Ndubuisi, N. L. (2024). Evolving Tax Compliance In The Digital Era: A Comparative Analysis Of Ai-Driven Models And Blockchain Technology In U.S. Tax Administration. Computer Science & IT Research Journal, 5(2), 311–335. https://doi.org/10.51594/csitrj.v5i2.759
Adellya, S., & Markhumah, U. (2026). Digital Literacy, Tax Knowledge, and MSME Tax Compliance in the Era of Digital Taxation. Journal Economic Business Innovation, 2(4), 475–487. https://doi.org/10.69725/jebi.v2i4.318
Akram, M. S., Malik, A., Shareef, M. A., & Goraya, M. A. S. (2019). Exploring the interrelationships between technological predictors and behavioral mediators in online tax filing: The moderating role of perceived risk. Government Information Quarterly, 36(2), 237–251. https://doi.org/10.1016/j.giq.2018.12.007
Alghusaini, Z., Alamri, N., & Alghizzawi, M. A. (2026). Impact of Digital Literacy, Trust in Government on Tax Compliance: Evidence from Omani SMEs. International Journal of Research and Innovation in Social Science, 10(2), 338–346. https://doi.org/10.47772/ijriss.2026.10200032
Al‐Okaily, M. (2024). Advancements and forecasts of digital taxation information systems usage and its impact on tax compliance: does trust and awareness make difference? Journal of Financial Reporting & Accounting. https://doi.org/10.1108/jfra-09-2023-0567
Altundağ, S. (2025). Digital economy and tax compliance: exploring the relationship between e-commerce adoption and tax payment motivation in Diyarbakir. DergiPark (Istanbul University). https://doi.org/10.17261/pressacademia.2025.1979
Aminah, S. (2025). Interplay of PMK No. 15/2025, Trust in Government, and Tax Literacy on Tax Compliance with Digital Services as a Moderator. EKOMA Jurnal Ekonomi Manajemen Akuntansi, 5(2), 1154–1169. https://doi.org/10.56799/ekoma.v5i2.13894
Anggraeni, W. A. (2025). E-Taxation and Fiscal Governance: A Narrative Review of Compliance, Efficiency, and Equity. Summa Journal of Accounting and Tax, 3(2), 97–110. https://doi.org/10.61978/summa.v3i2.970
Anisykurlillah, I., Sugiyat, J., & Mukhibad, H. (2024). The Power of Tax Authority and Tax Compliance: Does Tax Literacy Matter? Jurnal Dinamika Akuntansi, 16(1). https://doi.org/10.15294/jda.v16i1.1600
Ardika, M. I., Hardika, N. S., & Suardani, A. A. P. (2023). The role of tax socialization in tax digitalization and taxpayer awareness on individual taxpayer compliance. Journal of Applied Sciences in Accounting Finance and Tax, 6(2), 61–68. https://doi.org/10.31940/jasafint.v6i2.61-68
Asamoah, M. K., Nketiah‐Amponsah, E., Ansong, J. D., & Agyekum, B. (2023). Education dimensions relevant to successful electronic levy mobilization in resource-rich yet poor countries in Africa. Cogent Business & Management, 10(3). https://doi.org/10.1080/23311975.2023.2276540
Asmah, A., Ampong, K. O., Bibi, D., & Ofori, W. (2025). Exploring the drivers of digital technology adoption for enhancing domestic tax mobilization in Ghana. International Journal of Information Management Data Insights, 5(1), 100327–100327. https://doi.org/10.1016/j.jjimei.2025.100327
Batrancea, L. M., Nichita, A., Agostini, R. D., Narcizo, F. B., Forte, D., Mamede, S. de P. N., Roux-Cesar, A. M., Nedev, B., Vítek, L., Pántya, J., Salamzadeh, A., Nduka, E., Kudła, J., Kopyt, M., Pacheco, L., Maldonado, I., Isaga, N., Benk, S., & Budak, T. (2022). A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries. Financial Innovation, 8(1). https://doi.org/10.1186/s40854-022-00404-y
Damayanti, R., Masykur, M. A., Alamsyah, F. R., Mursyid, A. M., & Muhtada, D. (2025). Transforming Taxation: Unlocking Efficiency and Resilience Through Digitalization. The Indonesian Journal of International Clinical Legal Education, 6(4), 453–476. https://doi.org/10.15294/iccle.v6i4.13583
Dantani, A. S. (2025a). Tax System Digitalization and Taxpayer Compliance. Zenodo (CERN European Organization for Nuclear Research). https://doi.org/10.5281/zenodo.18124759
Dantani, A. S. (2025b). Tax System Digitalization and Taxpayer Compliance. Zenodo (CERN European Organization for Nuclear Research). https://doi.org/10.5281/zenodo.18124758
Dermawan, A. S., Ferinia, R., & Karundeng, M. L. (2025). Pengaruh Pemanfaatan Teknologi Informasi Dan Pelayanan Fiskus Terhadap Tingkat Kepatuhan Wajib Pajak. Jurnal Lentera Bisnis, 14(1), 155–168. https://doi.org/10.34127/jrlab.v14i1.1307
Erasashanti, A. P., Cahaya, Y. F., Yuniarti, R., Rifaldi, M., Prasetyo, J. H., & Indonesia, U. N. M., Jakarta,. (2024). The Role of Taxpayer Awareness in Enhancing Vehicle Tax Compliance in Indonesia: An Attribution Theory Approach. Journal of Tax Reform, 10(1), 162–180. https://doi.org/10.15826/jtr.2024.10.1.163
Ermadiani, E., & Kesuma, N. (2025). Efektivitas Sistem E-Filing Dan Relawan Pajak Terhadap Kepatuhan Wajib Pajak Di Lingkungan Perguruan Tinggi. Journal of Management and Innovation Entrepreneurship (JMIE), 2(3), 2037–2050. https://doi.org/10.70248/jmie.v2i3.2134
Fadhilatunisa, D., Fakhri, M. M., Nirmalasari, A., Awalia, A. D. N., & Soeharto, S. (2025). Explaining Tax Digitalization Adoption: The Mediating Role of Digital Literacy in the Effects of AI-Driven Automation, Effort Expectancy, and Facilitating Conditions. Journal of Economic Education and Entrepreneurship Studies, 6(3), 271–281. https://doi.org/10.62794/je3s.v6i3.9399
Gebrihet, H. G., Gebresilassie, Y. H., & Woldu, G. T. (2023). Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse. Social Sciences, 13(1), 3–3. https://doi.org/10.3390/socsci13010003
Haggai, B., & Odunga, R. (2025). Moderating Effect of Tax Literacy on the Relationship Between Digitalization of Services and Turnover Tax Compliance among Textile Companies Nairobi County, Kenya. Journal of Finance and Accounting., 5(2), 24–36. https://doi.org/10.70619/5-2-452
Hidayat, M. N., & Defitri, S. Y. (2024). Digitalization and the Changing Landscape of Tax Compliance (Challenges and Opportunities). Accounting Studies and Tax Journal (COUNT), 1(1), 131–139. https://doi.org/10.62207/c2gyc030
Huang, L. (2024). Quantifying Taxation Policy Effectiveness: The Mediating Role of Big Data and the Moderating Influence of Digitalization. Journal of Internet Services and Information Security, 14(4), 163–180. https://doi.org/10.58346/jisis.2024.i4.009
Hương, N. T. T., Tuyet, V. T. B., Le, H. T. H., & Hung, Q. (2025). Analyzing Determinants of Tax Management Effectiveness in Transportation Construction Enterprises in Vietnam: A Hybrid SEM–ANN Approach. International Journal of Economics and Financial Issues, 15(6), 119–129. https://doi.org/10.32479/ijefi.20562
Indonesia, U. P., Jakarta, Wulandari, W. T., Djaddang, S., Indonesia, U. P., Jakarta, Suratno, S., & Indonesia, U. P., Jakarta,. (2025). Digital Era Tax Compliance: A Systematic Review Integrating Behavioral, Technological, and Institutional Perspectives. International Journal of Current Science Research and Review, 8(12). https://doi.org/10.47191/ijcsrr/v8-i12-58
Joni, J., & Trisnawati, E. (2026). Kesadaran Pajak, Transparansi dan Kualitas Layanan: Dampak Kepatuhan Dimoderasi oleh Penggunaan Surat Keterangan Pemotongan Pajak Secara Elektronik. Al-Kharaj Jurnal Ekonomi Keuangan & Bisnis Syariah, 8(1), 205–219. https://doi.org/10.47467/alkharaj.v8i1.10355
Kinanti, K. A., Chandra, Y. A., & Suyono, A. P. (2025). Digital Integration In Tax Systems: Literature Review On Enhancing Efficiency And Ensuring Compliance. ASSETS Jurnal Ilmiah Ilmu Akuntansi Keuangan Dan Pajak, 9(1), 30–54. https://doi.org/10.30741/assets.v9i1.1508
Lekjaeng, S., & Sincharoonsak, T. (2025). Driving Sustainable Corporate Tax Compliance in Thailand: The Role of Technology, Responsibility, and Filing Intention in a Hybrid Analytical Framework. Journal of Posthumanism, 5(6), 3190–3207. https://doi.org/10.63332/joph.v5i6.2442
Li, Y., Paino, H., & Zin, N. M. (2024). The Intermediaries in the Relationship Between Information Technology and Tax Compliance: Power and Trust. Journal of Lifestyle and SDGs Review, 4(4). https://doi.org/10.47172/2965-730x.sdgsreview.v4.n04.pe02289
Li, Y., Zin, N. M., & Paino, H. (2024). The Potential of Information Technology on Tax Voluntary Compliance. International Journal of Academic Research in Business and Social Sciences, 14(10). https://doi.org/10.6007/ijarbss/v14-i10/23356
Lidyah, R., Rosmawati, W., Indraningtyas, Y., Endang, & Nuraini, N. (2025). The Effect Of Digital System Implementation On Taxpayer Compliance With Digital Culture As A Moderating Variable . Jurnal Teknologi Dan Manajemen Industri Terapan, 3(3), 1218–1223. https://doi.org/10.55826/jtmit.v4i3.1441
Lu, C.-T., Huang, S.-Y., & Lo, P.-Y. (2010). An empirical study of on-line tax filing acceptance model: Integrating TAM and TPB. AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 4(5), 800–810. https://doi.org/10.5897/ajbm.9000068
Masri, I., Chasbiandani, T., Rasyid, D. K., & Nuraini, N. (2024). Reciprocal Relationship between Taxpayer’s Compliance and Governance Quality. International Journal of Economics and Financial Issues, 14(4), 131–137. https://doi.org/10.32479/ijefi.16279
Masunga, F. J. (2024). The Nexus of Quality of the e-Tax System, Taxpayers’ Attitude, Multiple Mediators, and Tax Compliance Behaviour: A Theoretical Paper. CECCAR BUSINESS REVIEW, 5(9), 49–64. https://doi.org/10.37945/cbr.2024.09.06
Mebratu, A. A. (2024). Theoretical foundations of voluntary tax compliance: evidence from a developing country. Humanities and Social Sciences Communications, 11(1). https://doi.org/10.1057/s41599-024-02903-y
Meiryani, M., Alkhanifani, D., & Ramadhanti, V. (2023). The Effect of E-System Modernization, Self Efficacy and Digital Literacy Capabilities on Taxpayer Compliance. E3S Web of Conferences, 426, 1020–1020. https://doi.org/10.1051/e3sconf/202342601020
Michael, M. (2026). E-Commerce Tax: From e-Filing to Coretax (A Bibliometric Analysis). Owner, 10(1), 134–147. https://doi.org/10.33395/owner.v10i1.2850
Moreno, D. E., Torres, R. C., Garcia, C. A., Perez, R. L., & Telan, P. (2025). Technological Readiness and Voluntary Tax Compliance of Micro and Small Enterprises: The Mediating Role of Willingness to Adopt e-Tax Filing Systems. 83–88. https://doi.org/10.1145/3760557.3760571
Mutammimah, Pamungkas, S., & Mayangsari, S. (2025). Core Tax Administration System from the Perspective of the Theory of Planned Behavior. Jurnal Ilmiah Akuntansi Kesatuan, 13(6), 2039–2050. https://doi.org/10.37641/jiakes.v13i6.4608
Oluka, A. (2026). The Influence of Automation on Tax Compliance Behaviour. International Journal of Applied Research in Business and Management, 7(3). https://doi.org/10.51137/wrp.ijarbm.564
Opiso, J., Nkundabanyanga, S. K., Tumwine, S., Kaawaase, T. K., Senyonga, L., & Echegu, S. (2023). The digital era of taxation: Analysing the effectiveness of digital tax adoption on petroleum excise duty revenue. Cogent Business & Management, 10(3). https://doi.org/10.1080/23311975.2023.2272370
Perveen, N., & Ahmad, A. (2022). Tax Technology, Fairness Perception and Tax Compliance among Individual Taxpayers. Audit and Accounting Review, 2(2). https://doi.org/10.32350/aar.22.05
Putri, A., Yasa, I. N. P., & Putra, P. Y. P. (2025). Digital Tax Literacy terhadap Kepatuhan Wajib Pajak. Jurnal Ilmiah Manajemen Dan Kewirausahaan, 4(1), 368–383. https://doi.org/10.55606/jimak.v4i1.5392
Putri, A. Z., Hidayat, K., & Z.A., Z. (2025). What Factors Drive Tax Compliance in Tax Information System?: A Systematic Literature Review. International Journal For Multidisciplinary Research, 7(3). https://doi.org/10.36948/ijfmr.2025.v07i03.49316
Rizkina, M. (2025). Reinventing Central Tax Administration: a Systematic Literature Review on Digital Tax Transformation and Compliance Enhancement in 2020–2025. Action Research Literate, 9(12). https://doi.org/10.46799/arl.v9i12.3072
Roida, R., Werdiningsih, R., & Pudjiarti, E. S. (2025). The Implementation of Tax Administration Digitalization Policy on Tax Compliance in Manufacturing Industry Companies. Dynamics Social International Journal of Social Sciences and Communication, 1(3), 45–54. https://doi.org/10.70062/dynamicssocial.v1i3.231
Ruhara, M. M. (2025). Strengthening Policy Frameworks to Support Taxpayer Adaptation in Tanzania’s Digital Tax Transition: A Qualitative Review of Strategies and Institutional Gaps. RA Journal Of Applied Research, 11(4). https://doi.org/10.47191/rajar/v11i4.02
Saptono, P. B., Hodžić, S., Khozen, I., Mahmud, G., Pratiwi, I. D. P. K., Purwanto, D., Aditama, M. A., Haq, N., & Khodijah, S. (2023). Quality of E-Tax System and Tax Compliance Intention: The Mediating Role of User Satisfaction. Informatics, 10(1), 22–22. https://doi.org/10.3390/informatics10010022
Saputra, T. E., & Prabowo, R. E. (2025). Comparative Analysis of Public Perceptions of Tax Justice and Public Responses to Changes in the Tax System. Advances in Taxation Research, 3(1), 15–27. https://doi.org/10.60079/atr.v3i1.424
Sarker, T., & Ahmed, M. S. (2022). The Role of Government Reform in Improving Voluntary Tax Compliance in the Digital Economy (pp. 240–259). https://doi.org/10.4324/9781003196020-14
Sitio, M. P., Hendarto, D. T., Hudi, N. A., Sunarsih, U., & Mais, R. G. (2025). Analisis Digitalisasi Perpajakan Dalam Meningkatkan Kepatuhan Wajib Pajak; Systematic Literature Review. Syntax Literate Jurnal Ilmiah Indonesia, 10(12), 1279812807–1279812807. https://doi.org/10.36418/syntax-literate.v10i12.63261
Winda, W., Syahril, D., & Suratno. (2025a). Digital Era Tax Compliance: A Systematic Review Integrating Behavioral, Technological, and Institutional Perspectives. Zenodo (CERN European Organization for Nuclear Research). https://doi.org/10.5281/zenodo.18050558
Winda, W., Syahril, D., & Suratno. (2025b). Digital Era Tax Compliance: A Systematic Review Integrating Behavioral, Technological, and Institutional Perspectives. Zenodo (CERN European Organization for Nuclear Research). https://doi.org/10.5281/zenodo.18050559
Wulandari, D. S., Muslim, A. B., & Triwibowo, E. (2026). Preventing Tax Avoidance in the Post-Pandemic Era: The Role of Digital Tax Services, Compliance, and Fiscal Policy under the Slippery Slope Framework. SHILAP Revista de Lepidopterología. https://doi.org/10.23887/jia.v10i2.76398
Zaidi, S. K. R., Henderson, C. D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of Accounting in Emerging Economies, 7(1), 134–152. https://doi.org/10.1108/jaee-05-2015-0038
Downloads
Published
Issue
Section
License
Copyright (c) 2026 BizNOMICS: International Journal of Business and Economics
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
