The Influence of Cultural Dimensions on Taxpayer Compliance

Abstract

This research aims to analyze the influence of cultural dimensions on taxpayer compliance based on Hofstede's theory. In a dynamic global context, this research identifies three cultural dimensions: individualism, power distance and uncertainty avoidance, as well as how these three contribute to the level of taxpayer compliance. The population of this study is located in the city of Duri , with a distribution of questionnaires specifically given to taxpayers who adhere to Confucian teachings. The sample was taken using a convenience sampling method, totaling 70 respondents. Only 46 respondents completed the questionnaire.. The testing will be conducted using PLS with inner and outer models. The research results indicate that individualism and power distance have an effect on taxpayer compliance with p values of 0.036 and 0.007. Meanwhile, the variable of uncertainty avoidance does not have an effect on taxpayer compliance with a value of 0.909. This research highlights the importance of a fair and transparent tax system in encouraging tax compliance. Using a multidimensional approach, this research provides policy implications that can be applied to enhance tax compliance based on the diverse cultures of Indonesia.