RESEARCH ARTICLE

European Journal of Business and Management Research

www.ejbmr.org

The Effect of Motivation and Commitment of Taxpayer

Toward Tax Compliance and Empirical Studies Tax
Amnesty as Moderating Variable
(A Survey on Tax Service Center Kudus Branch)
Edi Wicaksono Abdurrosid, Grahita Chandrarin, and Diana Zhuro

ABSTRACT
This research has purpose to analyze Motivation and Commitment of
Taxpayer toward the Tax Compliance of Taxpayer on Tax Service Center Submitted : January 27, 2021
(KPP) Kudus branch and Empirical Studies Tax Amnesty as Moderating Published : February 11, 2021
Variable. The samples of the research are those with taxpayer in the tax
ISSN: 2507-1076
service center with numbers of respondents, 398 people from 69.377 people
using Slovin formula. The technique of sampling uses Accidental Sampling. DOI: 10.24018/ejbmr.2021.6.1.711
The data analysis uses MRA (Moderating Regression Analysis).
Edi Wicaksono Abdurrosid
An Economy Doctoral Program Student,
Keywords: Motivation, Commitment, Tax Compliance, Tax Amnesty, University of Merdeka Malang,
Moderating Regression Analysis. Indonesia.
(e-mail: edikkp5@yahoo.com).
Grahita Chandrarin *
The Director of Economy Doctoral
Program, University of Merdeka Malang,
Indonesia.
(e-mail: grahitac@gmail.com)
Diana Zhuro
The Director of Economy Magister
Program, University of Merdeka Malang,
Indonesia.
(e-mail: diana.zuhro@unmer.ac.id)

*Corresponding Author

row; and never being convicted because of doing any

I. INTRODUCTION criminality in taxation based on court ruling in which has
Tax becomes the main part of a state revenue in state already had legal force in long term, recent 5 years.
expenditure budget to always improve annually according The motivation based on Maslow is an emphasis on
to the needs of a state’s funding in development. The ratio human needs started from physiology, security, social,
of obedience in taxpayer compliance is known to be low, appreciation and self-actualization. The motivation of
12%, or about 1.235 trillion compared to Asian countries taxpayer to pay the tax is a voluntarily determination to pay
with percentage about 16.5% from PDB Indonesian about the tax to fulfill the tax liability as stated in taxing rules.
Rp 11.350 trillion. Professional commitment is tax penalties as an
In the rule number 11 Year 2016, article 1, verse (1), identification and involvement of individual performance in
what is meant by Tax Amnesty is cleaning up the tax which a certain profession. The identification needs some
should be loaned to be freed from administration and agreements with the purpose and the values of profession
criminal sanction, by revealing the fortune of the person and include moral and ethical values [15].
paying some tax penalties as stated in the rule. The definition of taxpayer in the rules number 28 Year
The tax liability is tax penalties as condition in which 2007 about the general regulation of taxation is any
taxpayer compliances all liabilities of taxing and does one’s individual or institution, covering taxpayer, tax cutters, tax
taxing right [16]. collector, whose right and liability of taxing based on the
The financial ministry’s decision number rules of taxation.
74/PMK.03/2013, the criteria of tax payer obedience is The explanation of the definition above, the motivation
being in time in delivering the notification letter; not having of taxation is an individual determination of an institution to
any loan of all any kind of tax, except the tax which has meet the compliance of tax liability as stated in the rules of
gained permission to credit or postpone the payment; taxation by considering moral and ethical values.
audited financial report by public accountant or financial Tax service office Kudus branch is a biggest tax service
supervision agency public financial supervision institute office in the area of General Taxing Directory in Central
with opinion normal without any exception for 3 years in Java I. The acceptance of tax amnesty in 2016 reached the

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European Journal of Business and Management Research
www.ejbmr.org

first rank from the amnesty acceptance with total amount Tax liability based on [14] tells us that the obedience is
Rp. 3,5 billion. After so long, the tax service office, the affected by economy factors (rate of tax, tax audit, sanction,
biggest tax service office in Central Java, from the income level, tax uses, and justification) and non-economy
acceptance of taxation has greater level because it is (attitude, norms related to personality, environment, and
supported by tax acceptance from cigarette industrial sector, country, as well as perception of the taxpayers about
especially PT Djarum Kudus. justification system of taxation).
Taxpayer is a liability to pay the tax both individually or States that the tax obedience economically can be
institutionally in which administratively listed in the tax approached from various perspectives: as public financial
service office Kudus branch. Recently, the taxpayers in problem, law implementation, organizational design,
Kudus raise, especially in MSME sectors with income until employees, ethics or the combinations of all of them) [1].
4.8 billion in a year. Therefore, individual and institutional
B. Tax Amnesty
taxpayer have liability to fulfill the tax to do. Through
government rule number 46 year 2013 about any business Tax amnesty generally involves providing previously
in which charged about 1% of the business earning from the noncompliant taxpayers with the opportunity to pay back-
gross distribution. It is lately changed into through taxes on undisclosed income, without fear of penalties or
government rule number 23 year 2018 into 0.5%, which prosecution” It is a program to give chance to the taxpayer
makes the acceptance from MSME sectors become the most to pay off their tax arrears without any administrative
excellent. sanction to improve tax liability of taxpayers and state
As long as it goes, not all of the wealth of taxpayer of revenue.
MSME is reported to the compliance of tax liability. So, Tax amnesty can take form into criminal sanction
through rule number 11 year 2016 in which announced amnesty, tax administrative penalty sanction amnesty, all
from July 1, 2016 until March 31, 2017, the tax payer is tax debt amnesty of the previous years included all
charged to pay the tax penalties about 0.5% from all the net administrative and criminal sanctions [7]. Tax amnesty is a
unreported wealth, and the facilities freed from tax liability policy in taxation field to clean al taxes which should be
both income tax and value added tax as well as tax debts. It owed by paying off a certain amount with purpose to add
becomes more interesting for the business doer because of tax revenue and chances for those who are not liable to be
the demand to reveal the fortune gained from 1984 until liable [5].
2015. States amnesty is “a policy of the government which
Various facilities are offered motivate individual essentially cleaning up the tax debts previously, included
taxpayer and MSME to obey in meeting the compliance the criminal and administrative sanctions by paying off a
liability of taxation, especially to reveal their unreported certain percentage of money from the original amount as
wealth in Tax Return, by paying the tax penalties for 0.5%. the basis of tax calculation.
This tendency motivates the obedience automatically by From the definition of the experts stating that amnesty is
adding one thing to reveal their wealth after the amnesty is a government policy in taxation field to improve state
done. revenue by cleaning up administrative sanctions, tax
By all wealth revealed after the amnesty, it will motivate arrears, criminal sanctions, and other tax liabilities by
taxpayers to keep doing their liability because after paying off some compensation after the amnesty with
revealing their wealth will improve the tax liability purpose to make them liable or obey to meet the taxation
compliance to create taxation objects for further years. The compliances.
form of revealing the wealth after the amnesty is one of C. The Motivation of Taxpayers
motivation of taxpayers to be open minded in meeting the The theory of Valance
compliance their tax liability. Expectation from by becoming more liable toward
This research discusses the motivation and commitment taxation will decrease cost of compliance.
of taxpayers toward tax liability compliance tested by using Justification Theory
tax amnesty as moderating variable. The perception of taxpayers toward the existed
regulation, tax apparatus, taxation system, will affect the
liability.
II. THEORETICAL PRINCIPLES Purpose Determination Theory
A. The Liability of Taxation Compliance The Government recently explains to taxpayers in detail
Jackson dan Milliron tax penalty taxation compliance as about the purpose of paying of the tax, the allocation of tax,
report of whole incomes and payment all tax based on the and its transparency so that taxpayers will be motivated to
law, rules, and decision of court [20]. State the obedience of act equally upon it.
taxpayers covers how far taxpayers fulfill their taxation D. The Commitment of Taxpayers
liability based on the current rules [20]. Tax liability is a
Levinger’s Cohesiveness Theory of Commitmen [3].
must thing to do by taxpayers to fulfill or disobey it in their
George Levinger was particularly interest in undestranding
country [20].
processes involved in both keeping relationships
Internal Revenue Service groups the obedience in 3
(particularly marriages) together and breaking them apart.
groups: obedience to fill compliance, to pay compliance,
His cohesiveness model,rooted in Kurt Lewin’s field
and to report compliance.
theory, emphasized the role of two social forces in

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 RESEARCH ARTICLE
European Journal of Business and Management Research
www.ejbmr.org

determining relationship commitment: attraction forces and In their research reveal that taxpayers with higher
barrier forces. incomes will have lower liability compared to those with
Rusbult’s Investment Model of Commitment. Caryl lower incomes after amnesty [11]. Based on the analysis
Rusbult’s theory of commitment is rooted in results done, they show positive effects of amnesty and
interdependence theory, proposed by John Thibaut and taxation knowledge. Meanwhile, tax authorities will not be
Harlod Kelley in the late 1950s. More specifically, Rusbult affected by taxpayers’ liability [18]. State amnesty
uses the interdependence concepts of dependence, positively and significantly affect toward tax liability [16].
comparison level, and comparison level for alternatives as a Gives pictures about the implementation of tax amnesty
basis for her investment model of commitment. The in some countries in which relatively success in the
investment model holds that commitment is the subjective implementation of tax amnesty policy, such as Southern
experience of dependence anf is a function of three Africa, Ireland, and India with purpose to study the policy
independent variables: satisfication level, quality of of each country and analyze the factors causing the program
alternatives, and investment size. to succeed and achieved the demanded target, as well as its
Johnson’s Tripartite Typology of Commitent, Michael perspective for Indonesian businessmen.
Johnson’s tripartite framework departs from the previous
F. Theoretical Framework
two models in conceptualizing commitment as a
multidimensional construct. Johnson specifies three distinct
Motivation
type of commitment: structural commitment , or feeling that
one must remain in relationship; moral commitment, or
feeling that one ought to emain in relationship; and personal Tax
Tax Amnesty
commitment, or feeling that one wants to remain in a Complience
relationship.
E. Previous Studies
Commitmen
State tax liability economically can be approached from
various perspectives: as a public financial problem, law
enforcement, organizational designs, employee supply,
ethics, or the combinations of all of them [1].
The study done [14] about tax liability stating that III. RESEARCH HYPOTHESIS
liability is affected by economy factors (tax rates, tax
The relationship between motivation and commitment of
audits, sanction, income level, tax benefits) and non-
taxpayers toward tax compliances and empirical studies
economy (attitudes, norms related to personality,
amnesty as moderating variable.
environment, and country as well as the perceptions of
taxpayers about taxation system justification.
A study about motivation toward tax liability [14] tells
IV. RESEARCH METHODOLOGY
that motivation toward tax liability is related to independent
indicators: genders and ages. Study done by [4], liability It is a causal qualitative research with taxpayers as the
occurs because intrinsic motivation is substantial. Another population, listed in tax service office Kudus branch. The
study done [18] states that motivation as covariate factor technique of collecting the sample uses Accidental
does not affect tax liability decision. Sampling. The minimum samples taken for this research are
Reseach [21] shows that commitment variable as 398 respondents from 69.377 people by using Slovin
research variable positively influences toward tax liability. formula.
Other research done by [22], commitment variable as The data analysis uses MRA (Moderating Regression
independent variable shows tax liability is determined by Analysis) and the technique to collect the data uses primary
five factors: prevention, norms (personality or socially), and secondary data. Primary data collection is done using
justification and trust (tax administration); taxation system questionnaire.
complexity, and the role of the government as well as
greater economy environment. Study done by Koessler et al
[24] shows tax commitment is done voluntarily by the V. VARIABLES AND OPERATIONAL DEFINITIONS
society. It differs to [8] that show the motivation is done by The dependent variable is the existence affected by
force will negatively affect tax liability. Meanwhile, the affective factors toward liability compliances of taxation.
commitment motivation shows positive effect toward tax Those variables are measured by question instrumentation
liability. Study done by [12] shows tax liability is depended and the answers are measured by Likert scale by having 5
on the relationship between taxpayer’s commitments to answers.
contribute toward general goodness. The independent variable is variable affecting or causing
Study about the effect of tax amnesty toward tax liability any changes toward dependent variables. Those are
according to [9] shows negative effect from amnesty effect. motivation and commitment of taxpayers. Those are
It shows some decreasing attitudes toward tax liability. measured by using Likert scale (5) alternative answers. The
Meanwhile, study done shows that tax liability will not details are: 1) strongly disagree (STS); 2) disagree (TS); 3)
automatically improve right after amnesty. Neutral (N); 4) agree (S); 5) strongly agree.

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European Journal of Business and Management Research
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Edi Wicaksono Abdurrosid is a doctoral

candidate in economics at Merdeka Malang
of University with a concentration of
expertise in taxation, management
accounting, cost accounting and tax
consultancy, get a bachelor's degree (S1)
from Muria Kudus University and continue
his Bachelor (S2) from the University of
Indonesia.
His current job is as a tax consultant in the Central Java region and
based in Kudus Regency. He has a vision and mission to help and resolve
problematic clients, especially regarding taxes.

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