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Service Quality and Perceived Fairness Drive Trust and Local Tax Compliance in Eastern Indonesia

In: Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)

Author

Listed:
  • Aco Firsam Rizal

    (Hasanuddin University)

  • Abdul Rahman Kadir

    (Hasanuddin University)

Abstract

This study investigates how institutional antecedents digital tax service quality and perceived fairness shape local tax compliance among Micro, Small and Medium Enterprises (MSMEs) through the mediating role of trust in local government. Within Indonesia’s decentralized, self-assessment regime, we theorize that reliable, usable and responsive e-tax services, alongside equitable and transparent tariff/procedural arrangements, constitute legitimacy-building signals that foster trust and, consequently, compliance. A cross-sectional survey across three Eastern Indonesian cities was analyzed using PLS-SEM. Reflective measures demonstrated satisfactory reliability and convergent validity (CR ≥ 0.86; AVE ≥ 0.56), with discriminant validity corroborated via robustness checks. Structural estimates indicate that service quality (β = 0.248, p

Suggested Citation

  • Aco Firsam Rizal & Abdul Rahman Kadir, 2026. "Service Quality and Perceived Fairness Drive Trust and Local Tax Compliance in Eastern Indonesia," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Rianda Ridho Hafizh Thaha & Muhammad Try Dharsana & Andi Tenri Harahap & Fakhrul I (ed.), Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), pages 2290-2302, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_160
    DOI: 10.2991/978-94-6239-709-5_160
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