The Influence of Income Level, Perception of Tax
Sanctions, Perception of Law and Tax Enforcement,
Perception of Tax Justice and Perception of
Transparency and Accountability on Individual
Taxpayer Compliance at KPP Pratama Batam Selatan
Ayu Garnis Nabila
1
, Diah Amalia
2
{ayugarnisnabila@gmail.com
1
, diahamalia@polibatam.ac.id
2
}
Business Management Department, Politeknik Negeri Batam, Jl Ahmad Yani, Batam Centre, Batam
29461, Indonesia
1,2
Abstract. This research was conducted on 401 respondents from non-employee ITP
registered at KPP Pratama Batam Selatan in 2021 using quantitative methods and primary
data. The data obtained were analyzed using multiple linear regression analysis. The
findings of this study are income level variables, perceptions of law and tax enforcement,
and perceptions of transparency and accountability have a significant effect on the results
of ITP compliance at KPP Pratama Batam Selatan. In contrast, the variables of tax
sanctions and perceptions of tax justice have no significant impact on ITP compliance at
KPP Pratama Batam Selatan.
Keywords: Income Level, Perception of Tax Sanctions, Perception of Law and Tax
Enforcement, Perception of Tax Justice, Perception of Transparency and Accountability,
Compliance of Individual Taxpayers.
1 Introduction
The tax sector is Indonesia's largest source of income. The amount of tax contribution to
Indonesia shows the importance of taxes for Indonesia. The principle of state taxation is referred
to as a factor causing low taxpayer compliance, and this is because taxpayers cannot directly
enjoy the results of tax payments. In other words, taxpayers never know the genuine reciprocity
they want from the costs they spend on taxes. (Paramaduhita & Mustikasari, 2018).
Tax administration in Indonesia uses a self-assessment system. The self-assessment system
in the tax sector has been widely applied around the world. In implementing this system,
taxpayer non-compliance is a concern for the organizers. The problem with this system is the
transfer of responsibility for calculating taxes owed from the tax authorities to the taxpayer
(Saad, 2013). The tax collection mechanism using a self-assessment system requires taxpayers
ICAESS 2022, October 05, Batam, Indonesia
Copyright © 2023 EAI
DOI 10.4108/eai.5-10-2022.2325853