The Effect of Indonesian Digital Service Tax, Financial Capability on Tax Evasion
Islamiah Kamil (a)*, Sigit Mareta(b), Lestari(c), Yolifiandri(d), Edy Suryadi(e)

a,b,c,d,e) Accounting Program, Business & Social Science Faculty, Universitas Dian Nusantara, Jakarta Indonesia
a)* islamiah.kamil[at]undira.ac.id

Abstract

The Digital Service Tax (DST) in Indonesia is set to take effect from July 1, 2020 through Minister of Finance Regulation Number 48/2020. The target is individual taxpayers or companies that carry out transactions for goods and services are transacted through an electronic system. This paper aims to examine the application of DST and Financial Capability (FC) to Tax Evasion. A sample of 120 taxpayer respondents in the Special Capital District of Jakarta (DKI Jakarta) area was obtained through the convenience sampling method. Multiple linear regression analysis was used to test the significance of the effect of the application of DST and Financial Ability (FC) on Tax Evasion. The results of this research provide evidence that the application of DST has an effect on Tax Evasion and Financial Ability has no effect on Tax Evasion. The results can improve our understanding of Digital Service Tax (DST) influencing Tax Evasion, while Financial Ability (FC) has no affect Tax Evasion

Keywords: Digital Service Tax, Financial Ability, Tax Evasion, Tax Regulation

Topic: Business, Corporate Governance, and Accounting