Accounting Analysis Journal 10(1) (2021) 18-24 Accounting Analysis Journal https://journal.unnes.ac.id/sju/index.php/aaj p-ISSN 2252-6765 e-ISSN 2502-6216 Taxpayer Compliance Based on Awareness and Policy Dadang Suhendar 1 and Dani Rahman Hakim * 2 1 Department of Accounting, Faculty of Economics at Kuningan University, Indonesia 2 Department of Accounting, Faculty of Economics at Pamulang University, Indonesia ARTICLE INFO ABSTRACT Article History: Received October 22 th , 2020 Accepted February 27 th , 2021 Available March 15 th , 2021 This study examines the effect of tax policy aspects and awareness on taxpayer com- pliance in Kuningan Regency. The policy aspects in this study have manifested by tax sanction and Fiscus service quality. This study uses questionnaires which have distrib- uted by random sampling technic. By using the multiple linear regression analysis, this study reveals that tax sanctions, Fiscus service quality, and taxpayer awareness posi- tively affect taxpayer compliance. Aspects of government policy in tax sanctions are more significant than taxpayers’ awareness to affect taxpayer compliance. It means that strict tax sanctions have been necessary accompanied by improving the Fiscus services quality as part of the tax services paradigm. This study can be used as a reference to reexamine the determinants of taxpayer compliance, especially in areas with the same characteristics as the object of this study. Future research is expected to examine the equilibrium between economic and non-economic variables more deeply in increasing taxpayer compliance. It is essential because which variable most determines taxpayer compliance is still unclear, whether theoretically or practically. © 2021 Published by UNNES. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/) Keywords: Awareness; Compliance; Taxpayers; Fiscus Services Quality INTRODUCTION Indonesia’s tax ratio is one of the lowest between countries in the Asia Pacific. For example, Indonesia’s tax ratio in 2017 stood at 11.5%, below the average for member countries of the Organization for Economic Co-operation and Development (OECD), which has 34.2% (OECD, 2020). Based on data from the Ministry of Finance, Indonesia’s tax revenue has never reached the target for the last 4 years. In 2015, Indonesia’s tax realization was only 83.29%, 2016 was 83.48%, 2017 in- creased to 91.23%, 2018 became 93.86%, and 2019 fell back to 84.4%. State revenue to move the wheels of the economy still depends heavily on tax revenue. Efforts to increase tax revenue in Indonesia need to be intensified, especi- ally concerning taxpayer compliance. Some studies in- clude Harimulyono (2008), Suhendra (2011), Anggraeni et al. (2013), Silalahi (2015), and Yeni (2013), found em- pirical evidence that taxpayer compliance can affect tax revenue. Therefore, examining the factors that determi- ne taxpayer compliance is essential to formulate practi- cal efforts to increase it. Moreover, taxpayer compliance is difficult (Garcia et al., 2020). One of Indonesia’s districts that need to increase taxpayer compliance is Kuningan Regency at West Java Province. From 2014 to 2018, taxpayer compliance in the district with much potential in agriculture and tou- rism was 49.7% on average (KPP Pratama Kuningan). This condition is profoundly concerning because if compared with the average national individual taxpayer compliance in 2017, it is at 70% (Pajak.go.id, 2017). On that basis, this study seeks to examine the determinants of individual taxpayer compliance in Kuningan Regen- cy. Apart from the fact that taxpayer compliance is still a concern, Kuningan was chosen as the research object because Kuningan is the second impoverished district in West Java. This study’s results are supposed to be an ad- ditional reference in examining taxpayer compliance in other Districts classified as destitute. One of the theories that researchers overuse in examining taxpayer compliance determinants is the theory of planned behaviour (TPB) from Ajzen (1991). TBP states that behaviour was driven by intention, which is determined by 3 elements: attitude toward be- haviour, subjective norms, and perceived behavioural control (Ajzen, 1991). Benk et al. (2011) adopted the TBP theory in the context of taxpayer compliance into 3 components: equity attitudes, normative expectations, and legal sanctions. Meanwhile, by adopting TBP, Taing & Chang (2020) categorizing tax awareness, power of * E-mail: danirahmanhak@gmail.com Address: Jalan Surya Kencana No.1 Pamulang- Tangerang Selatan DOI 10.15294/aaj.v10i1.42043