​Driving Individual Taxpayer Compliance in the Coretax Era: The Mediating Power of Internal Motivation

Abstract

This study examined the effects of the Coretax System, tax regulations, and tax sanctions on individual taxpayer compliance, with internal motivation serving as an intervening variable. A quantitative survey was conducted among 80 individual taxpayers in Sidoarjo Regency, Indonesia, selected through purposive sampling. Data were collected through questionnaires and analyzed using partial least squares structural equation modeling with SmartPLS 4.0. The Coretax System, tax regulations, tax sanctions, and internal motivation each had positive and significant effects on individual taxpayer compliance. Internal motivation also significantly mediated the effects of the three external variables on compliance, indicating partial mediation. Taxpayer compliance emerged from the interplay between external instruments, including digital administration, regulation, and enforcement, and the internal psychological forces that sustain voluntary compliance. The study was limited to 80 respondents in one regency and relied on cross-sectional perceptions collected at a single point in time. The study extends the tax compliance literature by demonstrating the mediating role of internal motivation and offers practical guidance for the Directorate General of Taxes in refining Coretax implementation, regulatory design, and sanction policies.

Keywords

Coretax System Internal Motivation Tax Regulations Tax Sanctions Taxpayer Compliance