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Article

Determinant Factor of Individual Taxpayer Compliance in Indonesia: Integrates of TPB Theory and Social Identity Theory

by
Nurhayati
,
Azhar Maksum
*,
Narumondang B. Siregar
and
Fahmi Natigor Nasution
Fakultas Ekonomi dan Bisnis, Universitas Sumatera Utara, Medan 20155, Indonesia
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2025, 18(11), 595; https://doi.org/10.3390/jrfm18110595
Submission received: 21 September 2025 / Revised: 17 October 2025 / Accepted: 18 October 2025 / Published: 24 October 2025
(This article belongs to the Section Business and Entrepreneurship)
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Abstract

Studies on tax compliance have predominantly used the theory of planned behavior. This study combines the theory of planned behavior with social identity theory. This study examines tax fairness (subjective norms), tax complexity (perceived behavioral control), tax morality (attitudes toward behavior), and national pride as social identity theory that explain their impact on tax compliance levels. Using non-probability random sampling, this study successfully collected 401 individual taxpayer respondents and analyzed them using PLS-SEM. The results of this study revealed that national pride is a crucial component in improving taxpayer compliance behavior. TPB theory still makes a significant contribution to tax compliance intentions through tax fairness and tax morality. This research suggests that tax authorities should manage tax funds by providing a sense of fairness and improving taxpayer morality. On the one hand, the government needs to promote national pride among taxpayers. This has the potential to remind taxpayers of the presence of taxes and encourage the mobilization of funds from the tax sector for national development.

1. Introduction

Taxes play a crucial role in a country’s development. Indonesia relies heavily on tax revenues. By 2024, state revenue from taxes will reach 85% of total state revenue (Pajak, 2018). However, tax revenue faces a serious challenge, including declining taxpayer interest in paying taxes. Reportedly, tax revenue in Indonesia will remain relatively low in 2024 due to a high tax gap (DDTC, 2025). In the first quarter of 2025, Indonesia’s tax ratio will only reach 10.5%, far below the target it wants to achieve. This shows that the level of tax compliance is very low. Tax compliance is influenced by many factors, both internal and external. In their study, Tehulu and Dinberu (2014) revealed that important factors determining tax compliance are the fairness of the tax system, government spending, reference groups, personal financial conditions and changes in government policy. Amanah (2016) stated that someone will comply with paying taxes if they perceive fairness in paying taxes. This indicates that fairness in paying taxes is an important factor to consider. Dlamini (2017) added that if someone perceives unfairness in paying taxes and finds that the government is not using the taxes properly, this will increase their resistance to paying taxes. Other studies also suggest that low compliance rates are due to country characteristics and low reciprocity between countries and the amount of money paid (Lois et al., 2019). Low tax compliance rates in developing countries result in low tax revenues, with increased government debt to meet increased government spending (Amoh & Ali-Nakyea, 2019). Other research also indicates that taxpayer compliance in Indonesia is a challenge in efforts to increase income tax (Andini & Rahmiati, 2021).
The theory of planned behavior plays a crucial role in exploring individual behavior in tax compliance (Ajzen, 1991; Efebera et al., 2004; Onu, 2016; Kaulu, 2021). Empirical studies show that attitude toward behavior, perceived behavioral control, and subjective norms are important factors in determining taxpayers’ willingness to pay taxes (Taing & Chang, 2020; Kaulu, 2021; Saptono & Khozen, 2023). Although many have investigated the main theory of the TPB, recent research has begun to explore subcomponents of the TPB theory, such as tax fairness, trust in government, and tax complexity. Tax fairness, a subcomponent of subjective norms, has received considerable attention from scholars. Tax fairness refers to the perception of fair treatment of taxpayers by the tax authority. Taing and Chang (2020) stated that taxpayers’ perceptions of the tax authority have a positive impact on their willingness to pay taxes. Mei Tan and Chin-Fatt (2000) added that positive attitudes toward factors such as the fairness of the tax system are considered to play a significant role in a country’s tax compliance level. In their study, Saptono and Khozen (2023) found that tax fairness is one factor influencing a person’s intention to pay taxes. Belahouaoui and Attak (2023) also found that tax fairness is a determining factor in a person’s intention to comply with taxes.
The next subcomponent of the TPB is tax complexity. Tax complexity refers to the level of complexity involved in tax reporting. Feldman et al. (2016) stated that tax complexity causes confusion and results in undesirable behavioral reactions. Beside the tax complexity a subcomponent of attitude toward behavior is tax morality. Tax morality refers to the intrinsic motivation possessed by individuals related to taxpayer ethics, social norms and beliefs (Alm & McClellan, 2012). National pride as a social identity theory is one of the important factors in determining tax compliance and has received much attention from scholars recently. National pride is included in social identity theory. Several scholars such as Alshira’h and Abdul-Jabbar (2020), Gangl et al. (2016) and Abodher et al. (2025) recommend involving social factors or psychological factors such as national pride because they play an important role in influencing taxpayer compliance behavior. Callan et al. (2006) added that national pride is a relevant factor in predicting taxpayer compliance behavior. In social identity theory, it is said that the spirit of nationalism plays an important role in influencing taxpayer attitudes and actions (Tajfel, 1981). However, not many researchers have paid attention to national pride as a research variable on tax compliance, especially in Indonesia.
Therefore, the research question is:
  • What are the behavioral and psycologycal factor that influence that influence individuals’ intention to pay tax in Indonesia?
  • How can the theory of planned behavior be combined with social identity theory to explain this phenomenon?
To answer the research queations, this study aims to explore the behavioral aspect from the theory of palnned behavior such as tax fairness, tax morality, tax complexity, and combined with psycologycal aspect such as national pride. In the literature, studies on tax compliance that combine planned behavior theory and social identity theory are still very rare, especially on individual tax complaints in Indonesia, and this study was conducted to fill this gap. The theory of planned behavior was chosen because this theory is able to describe a person’s behavior well in determining attitudes and the theory of social identity is very suitable to describe a person’s identity, especially in the spirit of patriotism. Gangl et al. (2016) said that the spirit of patriotism is a very important motivation in creating national pride.
This study contributes in several ways. First, although many researchers have discussed these factors, both for individual taxpayers (Abodher et al., 2025; Ali et al., 2014; Devos, 2014; Efebera et al., 2004; Taing & Chang, 2020) and non-individual taxpayers such as small and medium enterprises (Nartey, 2023; Bani-Khalid et al., 2022; Dao & Hang, 2022; Twum et al., 2020; Kiconco et al., 2019; Musimenta et al., 2017), integrating these variables is still rare in the literature, especially in Indonesia. Therefore, this study will expand and expand the existing literature. Second, we will also test the potential of national pride as an important variable in individual taxpayer compliance and taxpayer behavior. Third, this study employs social identity theory and the TPB framework to investigate tax compliance intentions among individual taxpayers in Riau Province, Indonesia. Both theories will provide a broader view of tax compliance in Indonesia. Therefore, this study contributes to the growth and expansion of the existing literature by offering empirical evidence on the extent to which tax fairness, tax morality, tax complexity, and national pride can influence taxpayer compliance behavior. This study also offers practical solutions to improve individual tax compliance in Indonesia.

2. Literature Review

2.1. Tax Compliance Theory

Compliance Theory used by researchers in the field of taxation to explain the level of taxpayer compliance with regulations and laws that have been made by the government. This theory was first proposed by Milgram (1963), who explained that compliance is the drive of an individual, group, or organization to act or not act in accordance with established rules. In the context of tax compliance, this compliance theory helps understand why individuals or organizations comply with tax regulations and how to improve such compliance. According to Etzioni (1975) suggests that the theory of compliance/Compliance Theory put forward organizational structure and how power can be used to shape human behavior. Following developments in relational theory, Etzioni also proposed three main types of organizational power, namely: utilitarian, coercive and normative and argued that all three are necessary in shaping human behavior to achieve organizational goals.
Based on the description above, it can be concluded that the compliance theory is used by researchers in the field of taxation to explain the level of taxpayer compliance with regulations and laws that have been made by the Government. Therefore, the compliance theory can encourage someone to comply more with applicable regulations and comply with regulations in submitting financial reports as decided by the Taxation Law.

2.2. Theory of Planned Behavior

The theory of planned behavior (TPB) was first proposed by Ajzen (1991). TPB is a theory developed to observe a person’s behavior. TPB theory emphasizes three aspects of a person’s interests, namely: (1) individual attitudes toward behavior; (2) subjective norms regarding behavior; and (3) perceived behavioral control to engage in behavior. Efebera et al. (2004) stated that individual attitudes refer to positive or negative assessments of behavior based on beliefs. In the context of tax compliance, someone who understands tax regulations well and has a positive perception of tax rates and is aware of tax sanctions tends to be more compliant in paying taxes. Meanwhile, subjective norms refer to an individual’s perception of social pressure felt by someone to do something. In the context of tax compliance, the influence of tax consultants and close friends can shape behavioral intentions in paying taxes.
Meanwhile, perceived behavioral control refers to the perceived ease or difficulty in carrying out a certain behavior that includes resources, abilities, and opportunities. Dawkins and Frass (2005) stated that the theory of planned behavior is very useful for predicting a person’s intentions and behavior against a person’s beliefs about the opinions of other relevant people and the extent to which they can control their behavioral choices. In the context of tax compliance, if a person believes that someone can influence his behavior then it will be a key factor in taxpayer compliance.
The relevance of the theory to taxpayer compliance and taxpayer behavior is based on their intentions. Taxpayers with good intentions will carry out tax provisions because paying taxes to the state is an obligation. Taxpayers who behave well when carrying out tax activities will directly facilitate tax activities. Ajzen (1991) defines intention as an individual’s subjective probability of performing a behavior or a composite tendency of a behavior. Efebera et al. (2004) add that, as a general rule, a stronger intention to perform a behavior is associated with a greater likelihood of engaging in that behavior. The Theory of Planned Behavior (TPB) states that individual behavior is influenced by their intentions, which in turn are influenced by behavioral beliefs, social norms, and perceived control (Kehelwalatenna & Soyza, 2020).
The Theory of Planned Behavior provides a strong framework for understanding the factors that influence behavior across disciplines (Zhang, 2018). Social norms and trust in government play an important role in encouraging tax compliance (Jimenez & Iyer, 2016). Social norms can function as informal institutions in society that facilitate tax compliance through understanding and implementing shared values (Kirchler & Hoelzl, 2017; Shafer & Wang, 2018). Social norms can also encourage tax compliance (Wenzel, 2004; Górecki & Letki, 2021). The conclusion of the relevance of this theory to taxpayer compliance lies in the behavior carried out by taxpayers based on the intentions of the taxpayers themselves. The strategy to increase tax compliance is not only law enforcement but also emphasizes social norms (Alm & McClellan, 2012). By understanding and predicting tax compliance behavior, and highlighting the importance of behavioral intentions influenced by attitudes, subjective norms and perceived behavioral control. In this study, tax fairness as subjective norms, tax complexity as perceived behavior control and tax morality as individual attitude toward behavior.

2.3. Social Identity Theory

Social identity theory was first introduced by Tajfel and Turner (1979). They argued that each individual has their own group within different social groups based on their national identity. Furthermore, Tajfel and Turner (1979) stated that social identity theory focuses on how group membership or social identity influences intergroup behavior or attitudes as well as individual self-concept. Abodher et al. (2025) added that specifically, this theory states that social identification or group membership gives individuals a positive self-concept (for example, feelings of love and pride in their country), and this can motivate individuals to engage in social behavior that benefits the interests of their group (Tajfel, 1981). Chan (2019) and Xin-Li (2010) stated that taxpayers who have a strong sense of national pride are more willing to comply with tax regulations. This indicates that a good understanding of national pride will encourage someone to comply with tax obligations. Surveys also show that there is a positive relationship between national pride and prosocial behavior such as tax compliance (Huddy & Khatib, 2007). This means that individuals with high national pride are more likely to comply with tax obligations because this will significantly assist the country in building various necessary facilities.

2.4. Previous Studies and Hypothesis Development

2.4.1. Tax Morality

Morality has become an interesting issue for researchers, particularly regarding tax compliance. Taing and Chang (2020) stated that taxpayers with high morality are more likely to comply. Furthermore, Frey (1992) stated that tax morality is related to intrinsic motivation. In his study, Kaulu (2021) found a positive and significant relationship between tax morality and taxpayer egoism. Taing and Chang (2020) also found a relationship between tax morality and tax compliance in South Korea. A recent study also revealed that tax morality is a determining factor in taxpayer compliance intention in Indonesia (Saptono & Khozen, 2023). This indicates that tax morality as a behavioral factor plays an important role in influencing interest in paying taxes. Therefore, we formulate the following hypothesis:
H1: 
Tax morality has a positive impact on taxpayer behavior intention.

2.4.2. Tax Complexity

The complexity of the tax system is a concern among taxpayers and researchers alike. Richardson (2006) stated that complexity is one factor contributing to tax non-compliance. Taing and Chang (2020) conducted an investigation of 402 respondents in Phnom Penh, Cambodia, and found that tax complexity negatively impacted taxpayers’ intention to pay taxes. Meanwhile, Kaulu (2021) investigated the relationship between tax complexity and taxpayer compliance behavior intention in Zambia, involving 151 respondents, and found a negative relationship. Most recently, Saptono and Khozen (2023) found that tax complexity had a significant negative effect on taxpayer behavior intention. These findings indicate that tax system complexity can influence taxpayers’ interest in paying taxes. Therefore, we propose the following hypothesis:
H2: 
Tax complexity has a negative impact on taxpayer behavior intention.

2.4.3. Tax Fairness

Several studies have demonstrated a relationship between tax fairness and tax behavioral intention. Efebera et al. (2004) stated that when perceived subjective norms regarding compliance increase, compliance intentions and related behaviors will also increase. Similarly, tax fairness, as a subjective norm, when perceived fairness in the tax system is enforced, it will increase tax compliance (Strumpel, 1968). Saptono and Khozen (2023) found a positive relationship between tax fairness and tax behavioral intention. The study involved 699 individual taxpayer respondents in Indonesia. A survey conducted by Lim (2018) in South Korea found that the perception of unfair fiscal exchange significantly reduced individuals’ willingness to contribute to the tax system. Chau and Leung (2009) stated that an unfair tax system can cause people to consider overpaying. This indicates that tax fairness is an important factor influencing behavioral intention. Therefore, we formulate the hypothesis as follow:
H3: 
Tax fairness has a positive relationship with taxpayer behavioral intention.

2.4.4. National Pride

National pride refers to pride in or love for one’s country. Bani-Khalid et al. (2022) argue that national pride has the potential to encourage higher tax payments to the state and discourage taxpayers from migrating to other countries in response to increased tax rates. Qari et al. (2012) add that national pride plays a key role in all aspects of life, including taxes. In their study, MacGregor and Wilkinson (2012) found a positive relationship between national pride and tax compliance. However, a study by Gangl et al. (2016) found a positive impact of national pride on tax compliance but insignificant. A recent study by Abodher et al. (2025) found a significant relationship between national pride and non-compliance behavior in Libya. Based on the empirical results presented above, we believe that national pride is an important factor encouraging individual taxpayers to comply with taxes in Indonesia. Thus, we hypothesized as follow:
H4a: 
National pride has a positive relationship with tax payer behavior intention.
H4b: 
National pride has a positive relationship with tax payer compliance behavior.

2.4.5. Tax Compliance Intention

The research findings show that intention has a positive influence on taxpayer compliance (Hanno & Violette, 1996). Harinurdin (2011) revealed that professional intention has a positive and significant effect on tax compliance, which means that the intention to comply is a key factor in improving tax compliance in large companies. Ahnan (2021) added that taxpayer behavior is the main factor influencing tax compliance, and strategies that encourage positive and proactive behavior from taxpayers can help increase the level of compliance. Kirchler and Hoelzl (2017) also stated that intention has a positive effect on tax compliance, leading to further understanding of the factors that influence intention, which can help tax authorities design effective policies and programs to improve compliance among taxpayers. The study above shows that taxpayers who have a strong intention to comply with tax obligations are more likely to report their income correctly and pay taxes on time. For this reason, we propose the following hypothesis:
H5: 
Tax compliance intention has a positive relationship with taxpaer compliance behavior.

3. Reseach Methodology

3.1. Data Collection

The sample in this study was individual taxpayers in Riau Province, Indonesia. The sampling technique used in this study was non-probalism sampling. Data were collected using a questionnaire with a Likert scale of 1–5, where 1 represents strong disagreement and 5 represents strong agreement. The questionnaire was distributed directly to 500 individual taxpayers, both offline and online, from October to December 2024, and received feedback from 401 respondents. This sample size met the sample size standard, as analyzed using PLS-SEM (J. F. Hair et al., 2019). Table 1 shows the research questionnaire.

3.2. Empirical Model

This study applies the theory of planned behavior (TPB) introduced by Ajzen (1991) and the theory of social identity introduced by Tajfel and Turner (1979). We adopted three variables from the TPB: attitude toward behavior by including tax morality (Taing & Chang, 2020; Saptono & Khozen, 2023), perceived behavioral control by including tax complexity (Taing & Chang, 2020; Saptono & Khozen, 2023), and subjective norms by including tax fairness (Taing & Chang, 2020; Saptono & Khozen, 2023). National pride serves as a proxy for the theory of social identity (Abodher et al., 2025; Bani-Khalid et al., 2022; MacGregor & Wilkinson, 2012). Therefore, the conceptual framework can be seen in Figure 1.

3.3. Data Analyzed

This research was conducted using qualitative and quantitative approaches. The quantitative approach used partial least squares structural modeling (PLS-SEM). PLS-SEM was chosen for several reasons. First, the data for this study were collected using a non-probality sampling method, which has the potential for bias and causes data abnormalities. PLS-SEM was developed using a non-metric approach, so it does not require data normality (Ravand & Baghaei, 2016). Second, PLS-SEM can accommodate both small and large data sets (J. F. Hair et al., 2019).

4. Result and Discussion

4.1. Respondent Profile

Table 2 memperlihatkan profile respondent dimana male respondents were 252 (63%) and female respondents were 149 (37%). The research sample was 401 respondents in Riau Province. Furthermore, in terms of age, many of these respondents were aged 31 to 40 years as many as 164 people (41%), 41 to 50 years as many as 119 people (30%), 21 to 30 years as many as 29 people (15%) and >50 years as many as 59 people (15%). Respondents in this study were predominantly from generations X and Y, with a small percentage from Generation Z. This means that each generation has distinct characteristics. Generations Y and Z are more technologically savvy, and therefore require a technological approach to tax payments. Meanwhile, Generation X requires a different approach.
Furthermore, education, most of these respondents were filled with undergraduate education levels as many as 245 people (61%), Masters as many as 95 people (24%), High School as many as 44 people (11%), Diploma as many as 9 people (2%) and Doctorate as many as 8 people (2%). Education level reflects a person’s quality and propensity to understand tax regulations. This will facilitate tax officers in conducting tax education for taxpayers. Individuals who easily understand the tax system are more likely to pay taxes. The respondents in this study were predominantly university graduates, meaning they have the academic ability to understand tax regulations well and, therefore, the potential for tax compliance.
Furthermore, respondents who have professions/occupations as entrepreneurs are 129 respondents (32%), doctors are 114 people (28%), Senators are 84 people (21%), commissioners are 23 people (6%), Consultants are 13 people (3%), Judges are 11 people (3%), Lawyers are 9 people (2%), Directors are 7 people (1%), Notaries are 6 people (1%), Supervisory Board is 4 people (1%) and Auditor is 1 person (0%). This indicates that individual taxpayers have different backgrounds, which will also provide different understandings of taxpayers. While background doesn’t guarantee a high level of tax compliance, it does make it easier for the tax office to issue warnings about tax obligations.

4.2. Measurement Model Evaluation

Measurement model evaluation is the first step in analysis using PLS-SEM. H. G. M. Hair et al. (2014) stated that the minimum loading factor is 0.70, although some scholars use a loading factor value of 0.5 (Trianto et al., 2023). Meanwhile, the Average Variance Extracted (AVE) value is above 0.5, and the recommended Cronbach’s alpha and Composite Reliability (CR) values must be above 0.70 (Bagozzi & Yi, 1988; Jamshidi & Kazemi, 2019). Table 3 shows that the measurement models for all categories—loading factors, Cronbach’s alpha, AVE, and CR—met the criteria.

4.3. Structural Model Evaluation

Table 4 presents the results of statistical calculations using PLS-SEM. The results of statistical calculations show a significant influence of the tax morality variable on the intention to comply with taxes with a coefficient value of 0.414, thus accepting hypothesis H1. Meanwhile, tax complexity influences tax compliance positively but insignificantly, with a coefficient value of 0.054 and rejecting H2. Meanwhile, tax fairness significantly influences tax compliance with a coefficient value of 0.288 and accepting H3. Furthermore, national pride has a negative influence on the intention to pay taxes so that H4a is rejected. However, national pride has a significant influence on tax compliance behavior with a coefficient value of 0.204 and accepting H4b. Finally, tax complaint behavior significantly influences tax complaint behavior with a coefficient value of 0.460 and accepting H5.
The results of this study also show the value of R2 as shown in Table 5 below:
The R2 for tax compliance intention shows that tax morality, tax complexity, and tax fairness explain 40.4 percent of the effect. This means that 56.6 percent of other factors can influence tax compliance intention. Meanwhile, the R2 for tax compliance behavior shows a value of 34.5 percent, meaning that 65.5 percent is influenced by other factors.
The relationship between variables can also be seen in Figure 2 as follow:

4.4. Discussion

This study investigates the determinants of individual taxpayer compliance intention in Indonesia using the TPB framework and social identity theory. The results show that attitude toward behavior, proxied by tax morality, has a positive and significant influence on taxpayer compliance intention. This finding confirms previous findings by (Saptono & Khozen, 2023; Timothy & Abbas, 2021; Taing & Chang, 2020). This indicates that respondents in this study recognize that tax evasion is criminal and immoral. This means they recognize that fraudulent acts related to tax payments are unjustified and they (the respondents) have no intention of committing tax violations. Kirchgüassner (2011) stated that taxpayers with low morality tend to have the intention of not paying taxes properly, while taxpayers with high morality tend to have a strong intention to comply with taxes. In the Indonesian context, tax morality is not only an intrinsic motivation but also the impact of tax policy, such as legal sanctions. Indonesia currently implements a policy that prohibits those who fail to pay taxes from receiving other public services, such as citizenship administration. Therefore, to increase one’s intention to comply with taxes, taxpayer morality needs to be improved through education and role models or another apporach such as penalties.
This study also found that subjective norms, proxied by tax fairness, are also an important factor in influencing taxpacambodiayers’ intention to pay taxes. This finding aligns with Saptono and Khozen (2023), Hayat et al. (2022), Inasius (2019), Jimenez and Iyer (2016); Lois et al. (2019), but contradicts the findings of Kaulu (2021). This indicates that respondents tend to have good intentions to comply with tax payments when the developed tax system prioritizes values of justice. Richardson (2006) stated that taxpayers are more likely to comply with rules and regulations when they perceive taxes to be fairer. Taing and Chang (2020) added that taxpayers voluntarily pay taxes when they are treated fairly by the authorities. Furthermore, Jackson and Milliron (1986) and Chau and Leung (2009) stated that taxpayers who pay taxes disproportionately to their income when compared to other taxpayers perceive the tax system as unfair. Therefore, the authorities must develop a fairer tax system in Indonesia, so that it can increase the level of compliance in paying taxes.
This study also revealed that perceived behavioral control, proxied by tax complexity, did not significantly influence taxpayers’ intention to pay taxes. This finding is inconsistent with Kaulu (2021) and Taing and Chang (2020). The differences in findings may be due to differences in culture, institutional structures, tax systems, and the samples used. Korea, Zambia, and Cambodia have very different cultures. Furthermore, their tax systems also differ from those in Indonesia. The research samples also yielded different results due to differences in perspectives, perceptions, and experiences with paying taxes. This indicates that despite the complexity of the tax system established by the Indonesian tax authorities, taxpayers are still willing to comply with existing regulations and pay taxes, provided the taxes they pay are used properly, not for corruption or other unprofitable activities.1 Taing and Chang (2020) added that sometimes individuals do not find it difficult to deal with the level of tax complexity, but they are afraid of not paying taxes due to the power of authority.
This study also found a significant role of national pride in increasing tax compliance. These findings align with those of Bani-Khalid et al. (2022), Abodher et al. (2025), and Gangl et al. (2016). Social identity theory claims that tax payers who feel pride in their country and a strong sense of belonging to their community are more likely to comply with regulations and are willing to make material sacrifices by paying taxes to protect and promote the well-being of their community. This indicates that taxpayers with a strong sense of patriotism and pride in their country are more likely to comply with tax obligations. Therefore, the government needs to increase national insight among taxpayers so that they develop a strong sense of nationalism. A strong sense of nationalism is expected to impact a sense of belonging and pride as citizens. This activity can be carried out in the form of education about the importance of national pride in the individual taxpayer community or in other forms of activities such as cultural parades.
Finally, this study successfully identified the crucial role of tax compliance intention in driving increased tax compliance. This finding aligns with Kiria et al. (2020) and Gangl et al. (2016). This indicates that higher tax compliance intention increases the likelihood of individual taxpayers complying with their taxes. Therefore, the government needs to increase tax compliance intention among individual taxpayers by implementing various programs, such as utilizing tax funds for fairer and more equitable development. This will encourage taxpayer participation in paying taxes due to the various benefits they receive from these funds.

5. Conclusions

Taxes play a crucial role in a nation’s development, and taxpayer compliance is key. This study reveals that national pride, a person’s sense of identity, is a crucial factor in shaping tax behavior and compliance. This indicates the need for a clear program to increase national pride among individual taxpayers. Furthermore, tax morality and tax fairness are also important factors in shaping taxpayer intention. For this reason, the government needs to consider and improve the taxation system that can increase public enthusiasm and willingness to comply with paying taxes by paying attention to the factors mentioned above. Theoretically, these findings reveal that a combination of behavioral and psychological factors is an important combination in revealing interest in paying taxes. The results of this study expand and strengthen the foundations of the theory of planned behavior and the theory of social identity in explaining tax compliance behavior. This means that the theory of planned behavior is very effective in exploring its role in tax studies. Similarly, the theory of social identity is also able to explain the importance of national pride in shaping taxpayer behavior.
However, this study has limitations: the sample was only taken from one province, making the results incapable of generalization to Indonesia. Nevertheless, this study can serve as a reference for policymaking and further research. This study recommends further research to uncover the determinants of tax compliance using a social cognitive theory approach. This theory emphasizes the importance of trust, which can be used to inform tax policymaking. Furthermore, further research could explore taxpayers in various sectors, as well as urban and rural areas.

Author Contributions

N.: Coneptualization, data curation, formal analysis, funding acquitition, software, writing—original text; A.M.: Metohodology, suprvision, validation and writing—review and editing; N.B.S.: Metohodology, suprvision, validation and writing—review and editing; F.N.N.: Metohodology, suprvision, validation and writing—review and editing. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Based on the Declaration of Helsinki, this research does not require approval from the research ethics committee because this research is ordinary research, not medical research.

Informed Consent Statement

Informed consent for participation was obtained from all subjects involved in the study.

Data Availability Statement

The original contributions presented in this study are included in the article. Further inquiries can be directed to the corresponding authors.

Conflicts of Interest

The authors declare no conflicts of interest.

Note

1
Interview with taxpayer.

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Jrfm 18 00595 g001
Figure 1. Empirical Model.
Figure 1. Empirical Model.
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Jrfm 18 00595 g002
Figure 2. The PLS-SEM Inner Model.
Figure 2. The PLS-SEM Inner Model.
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Table 1. Questionaire Statement.
Table 1. Questionaire Statement.
VariableCodeDescriptionSource
Tax MoralityTMR1All tax obligations that I have submitted are correctTaing and Chang (2020); Saptono and Khozen (2023)
TMR2All the income I earn has been taxed
TMR3I have never violated any tax regulations
Tax ComplexityTCM1For me, it is very difficult to understand and follow tax lawsTaing and Chang (2020); Saptono and Khozen (2023)
TCM2I don’t understand how to determine the tax I have to pay
TCM3The tax payment system is very complicated
TCM4The tax reporting system is less simple
TCM5The tax system in Indonesia is still too complex
Tax FairnessTFR1Unfair tax regulationsTaing and Chang (2020); Saptono and Khozen (2023)
TFR2Tax rates are less proportional for individual taxpayers
TFR3Unfair tax system
TFR4Everyone has the same tax burden
TFR5A person with a low income will also have low taxes.
Tax Compliance IntentionTCI1I have never been late paying taxes because it is important for government services.Kaulu (2021); Saptono and Khozen (2023)
TCI2I will continue to pay taxes even if there is misuse of tax money by the government.
TCI3There is a big chance that tax money will be embezzled but I still pay taxes
National PrideNTP1I am immensely proud of my countryAbodher et al. (2025); Bani-Khalid et al. (2022); MacGregor and Wilkinson (2012)
NTP2Saya tidak akan pernah menghianati negara saya
NTP3I love being Indonesian
NTP4I will pay taxes for the progress of the country
Tax Compliance BehaviorTCB1I always fill out all tax reporting formsTwum et al. (2020)
TCB2I always pay my taxes on time
TCB3I always report my annual taxes on time.
Table 2. Respondent Profile.
Table 2. Respondent Profile.
DescriptionN%
Sexuality
   Male25263
   Female14937
Age
   21–305915
   31–4016441
   41–5011930
   >505015
Education
   Senior High School4411
   Diploma92
   Undergraduate24561
   Post graduate9524
   PhD82
Profession/Occupation
   Doctor11428
   Judge113
   Entrepreneurs12932
   Lawyer92
   Notary Public61
   Senators 8421
   Consultant133
   Commissioner236
   Auditor10
   Director72
   Supervisory Board41
Source: Author Calculation, 2025.
Table 3. Measurement Model evaluation.
Table 3. Measurement Model evaluation.
VariablesCodeLoadingAlphaCRAVE
Tax Morality 0.7670.8650.681
TMR10.838
TMR20.826
TMR30.811
Tax Complexity 0.9440.9520.690
TCM10.824
TCM20.770
TCM30.841
TCM40.873
TCM50.828
Tax Fairness 0.9340.9480.753
TFR10.859
TFR20.840
TFR30.901
TFR40.901
TFR50.873
Tax Compliance Intention 0.8950.9340.826
TCI10.904
TCI20.908
TCI30.914
National Pride 0.8940.9210.702
NTP10.898
NTP20.860
NTP30.769
NTP40.787
Tax Compliance Behavior 0.9020.9240.671
TCB10.749
TCB20.822
TCB30.816
Source: Author Calculations, 2025.
Table 4. Structural Equation.
Table 4. Structural Equation.
RelationshipsEstimatet-Statisticp-ValueRemarks
Tax Morality → Tax Compliance Intention (H1)0.4148.0030.000Accepted
Tax Complexity → Tax Compliance Intention (H2)0.0540.8940.372Rejected
Tax Fairness → Tax Compliance Intention (H3)0.2882.7640.006Accepted
National Pride → Tax Compliance Intention (H4a)0.0360.2780.781Rejected
National Pride → Tax Compliance Behavior (H4b)0.2043.1070.002Accepted
Tax Compliance Intention → Tax Compliance Behavior (H5)0.4608.1550.000Accepted
Source: Authors Calculation, 2025.
Table 5. Coefficient Determinations.
Table 5. Coefficient Determinations.
VariableR2Adjusted R2
Tax Compliance Intention0.4040.397
Tax Compliance Behavior0.3450.342
Source: Authors Calculation, 2025.
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Nurhayati; Maksum, A.; Siregar, N.B.; Nasution, F.N. Determinant Factor of Individual Taxpayer Compliance in Indonesia: Integrates of TPB Theory and Social Identity Theory. J. Risk Financial Manag. 2025, 18, 595. https://doi.org/10.3390/jrfm18110595

AMA Style

Nurhayati, Maksum A, Siregar NB, Nasution FN. Determinant Factor of Individual Taxpayer Compliance in Indonesia: Integrates of TPB Theory and Social Identity Theory. Journal of Risk and Financial Management. 2025; 18(11):595. https://doi.org/10.3390/jrfm18110595

Chicago/Turabian Style

Nurhayati, Azhar Maksum, Narumondang B. Siregar, and Fahmi Natigor Nasution. 2025. "Determinant Factor of Individual Taxpayer Compliance in Indonesia: Integrates of TPB Theory and Social Identity Theory" Journal of Risk and Financial Management 18, no. 11: 595. https://doi.org/10.3390/jrfm18110595

APA Style

Nurhayati, Maksum, A., Siregar, N. B., & Nasution, F. N. (2025). Determinant Factor of Individual Taxpayer Compliance in Indonesia: Integrates of TPB Theory and Social Identity Theory. Journal of Risk and Financial Management, 18(11), 595. https://doi.org/10.3390/jrfm18110595

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