Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs

The use of information communication technology for tax reporting has an important role in increasing economic growth and people’s quality of life. This research aims to evaluate the success of information systems and trust in the government on usage and user satisfaction, as well as the impact on tax compliance. The success of information systems consists of three variables, namely information, service, and system quality. This research also involves gender, education, and age as moderating variables. Subsequently, this study investigates whether tax compliance has an impact on a sustainable information society. This research was conducted on micro, small, and medium business taxpayers in Bali Province, Indonesia. Data collection was carried out by distributing survey questionnaires, with 128 taxpayers participating in this research. PLS-SEM was then used to test the hypothesis. This study found that the tax reporting system’s quality has a positive effect on usage and user satisfaction, while trust in the government has no effect. However, this study reveals that gender, education level, and age have no significant effect on the relationship between usage and satisfaction of e-filing users and taxpayer compliance. Furthermore, the results show that usage and user satisfaction have a positive effect on tax compliance, which in turn affects the sustainable information society. This research has implications in terms of the importance of improving the quality of the tax reporting system in Indonesia in realizing a sustainable society.