Title: Why participate in tax amnesty? The case of the Indonesian individual taxpayer

Authors: Arie Pratama

Addresses: Department of Accountancy, Universitas Padjadjaran, Indonesia

Abstract: Tax amnesty is a practice conducted by the government globally to raise tax revenues. This article presents several factors that affect the decision of the Indonesian taxpayer to participate in tax amnesty. These can be separated into three groups: 1) sociological; 2) psychological; 3) demographic factors. This study employed a quantitative exploratory approach, with 109 individual taxpayers selected as a sample. Data were collected using a questionnaire and analysed using a logit regression model. The results showed that three factors affected taxpayers' decisions to participate in tax amnesty: a high level of trust in government, and taxpayers' behaviour and belief. Female taxpayers, new taxpayers, those with high income, and those with high knowledge tend to participate in tax amnesty. These results implied that it is important for the government to make a business-friendly policy and promote tax as an instrument for development, to enhance taxpayer behaviour and perception.

Keywords: Indonesia; tax amnesty; sociological; psychological; demographical; tax compliance.

DOI: 10.1504/IJBG.2023.129537

International Journal of Business and Globalisation, 2023 Vol.33 No.4, pp.468 - 496

Received: 12 Sep 2019
Accepted: 09 Jan 2020
Published online: 14 Mar 2023 *

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