TAXPAYERS’ PERCEPTIONS OF A NEW DIGITAL TAX RETURN FEATURE: A CASE STUDY IN INDONESIA

Abstract

Taxation serves as a crucial revenue stream for numerous nations, facilitating the financing of public expenditures. The imperative for digital transformation is underscored in enhancing the efficacy and equity of tax systems. This research delves into the perspectives of taxpayers regarding a novel digital tax return functionality, while also scrutinizing the determinants shaping technology acceptance. Indonesia is examined as a pertinent case study owing to its ongoing digitalization endeavours within its fundamental tax administrative framework. Employing a mixed-method approach, this study offers an exhaustive descriptive analysis alongside employing an ordered logistic regression methodology utilizing survey data. The findings, indicating a 72.73% concurrence rate among taxpayers regarding their inclination to adopt the new digital tax return feature, signify a moderate level of technological acceptance. This moderate acceptance is buttressed by similarly moderate levels of agreement concerning taxpayers' perceived utility and ease of use of the digital tax return feature. Additionally, the outcomes unveil that taxpayer profiles, delineated as compliant taxpayers, state-owned enterprises, and multinational corporations, alongside perceptions of tax transparency, significantly influence the propensity to embrace new digital features. Such insights furnish tangible utility for tax authorities in formulating efficacious strategies for effectuating the digital transformation of core tax administrative systems, particularly concerning tax return applications.