The Effect of The Implementation of Coretax on Individual Taxpayer Reporting Compliance with Transparency as a Moderation Variable

Abstract

Digital tax administration requires systems that facilitate tax reporting and provide taxpayers with accessible and transparent information. However, technical difficulties and uncertainties associated with the implementation of Coretax may hinder individual taxpayers' reporting compliance. This study examined the relationships between perceived ease of use, perceived usefulness, system reliability, and individual taxpayers' annual income tax return filing compliance, with system transparency serving as a moderating variable. A quantitative explanatory research design was employed, involving 398 individual taxpayers registered at the Kupang Primary Tax Service Office (Kantor Pelayanan Pajak Pratama Kupang, KPP Pratama Kupang), who were selected through simple random sampling. Data were collected using an online questionnaire with a five-point Likert scale and analyzed through partial least squares structural equation modeling (PLS-SEM) using SmartPLS software. The results indicated positive and statistically significant relationships between tax return filing compliance and perceived ease of use (β = 0.536), perceived usefulness (β = 0.510), and system reliability (β = 0.060). System transparency also significantly moderated these relationships, with positive interaction coefficients of 0.058, 0.061, and 0.044, respectively, indicating relatively small moderating effects. Perceived ease of use and perceived usefulness exhibited stronger associations with reporting compliance than system reliability, suggesting that practical convenience and perceived functional benefits were particularly relevant to taxpayers' reporting behavior. The findings highlighted the importance of usability, functional effectiveness, system reliability, and information transparency in digital tax administration. The study concluded that improvements to Coretax should prioritize intuitive user interfaces, accessible reporting procedures, reliable system functionality, and clear communication of tax-related information. These measures could support individual taxpayers' annual tax return filing compliance, although the cross-sectional research design did not establish causal relationships.