Factors Influencing Taxpayers’ Intention to Use Online Tax Filing System (E-Filing): A Study of Indonesian Taxpayers

Abstract

Filling tax returns through an online system (e-Filing) implemented by the tax authorities have not shown optimal results in several regions in Indonesia, as indicated by the fact that there are still many taxpayers who do not file their tax returns. This was the case at Medan Petisah Tax Office. Compared to the target, only about 20% – to 30% of taxpayers have filed their annual tax return (SPT). The process of tax reporting with an online system sometimes hinders taxpayers, especially individual taxpayers who are not used to using the internet in their daily lives, in fulfilling their tax obligations. This study was conducted to determine factors that may influence the decision of taxpayers to file their tax return using the online tax filing system (e-Filing) in Indonesia. Taxpayer data is confidential according to the tax law, so to overcome the limitations of data collection, data were collected directly from taxpayers who came to Medan Petisah Tax Office. Random sampling techniques were used to select the respondents. The study sample consisted of 100 taxpayers registered at Medan Petisah Tax Office as respondents. Independent variables used in this study were: perceived usefulness, perceived ease of use, information technology readiness, security, and confidentiality. The data analysis technique used in this study was multiple linear regression analysis. The results of the study showed that perceived usefulness, perceived ease of use, information technology readiness have a significant effect on taxpayers’ intention to use e-Filing, while security and confidentiality does not have a significant effect on taxpayers’ intention to use e-Filing. This study has confirmed that individual knowledge about taxation and information technology supports taxpayers in fulfilling their tax obligations.