Cultural Values and Tax Compliance Among Tax Consultants in Indonesia

Ni Luh Gde Novitasari; Putu Novia Hapsari Ardianti; I Putu Edy Arizona; Putu Wenny Saitri

doi:10.32535/ijabim.v11i2.4677

Cultural Values and Tax Compliance Among Tax Consultants in Indonesia

Ni Luh Gde Novitasari, Putu Novia Hapsari Ardianti, I Putu Edy Arizona, Putu Wenny Saitri

Abstract

Tax compliance remains a major challenge, yet the influence of cultural values, particularly among tax consultants who shape taxpayers’ compliance decisions, remains underexplored. This study examines the influence of Hofstede's cultural dimensions on tax compliance among registered tax consultants in Indonesia. A quantitative explanatory research design was employed using a survey of 117 registered tax consultants in Bali. Data were collected through structured questionnaires and analyzed using multiple linear regression. The empirical results support all proposed hypotheses. H1 and H4 are supported, indicating that power distance and uncertainty avoidance positively influence tax compliance, while H2 and H3 are supported, demonstrating that individualism and masculinity negatively influence tax compliance. The regression model is statistically significant (p < 0.001) and explains 48.5% of the variance in tax compliance (R² = 0.485). The findings show that cultural values are important determinants of tax compliance among tax consultants, complementing traditional economic and institutional explanations. Tax authorities and professional associations should therefore integrate cultural and behavioral considerations into tax education, ethics training, and compliance programs to strengthen voluntary compliance.

Keywords

Individualism; Masculinity; Power Distance; Tax Compliance; Tax Consultant; Uncertainty Avoidance

Full Text:

PDF

References

Afzali, M., & Thor, T. (2025). Corporate culture and tax planning. Review of Quantitative Finance and Accounting, 64(2), 861-898. https://doi.org/10.1007/s11156-024-01320-1

Alm, J., & Torgler, B. (2011). Do ethics matter? Tax compliance and morality. Journal of Business Ethics, 101(4), 635-651. https://doi.org/10.1007/s10551-011-0761-9

Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36(2), 818-860.

Ardika, I. K. A., Ardianti, P. N. H., Evita, C. I. A., & Putri, N. (2025). The arm’s length principle in mitigating tax avoidance: A systematic literature review. International Journal of Applied Business & International Management, 10(1), 83–100. https://doi.org/10.32535/ijabim.v10i1.3673

Batrancea, L., Nichita, A., Olsen, J., Kogler, C., Kirchler, E., Hoelzl, E., ... & Zukauskas, S. (2019). Trust and power as determinants of tax compliance across 44 nations. Journal of Economic Psychology, 74, 102191. https://doi.org/10.1016/j.joep.2019.102191

Bobek, D. D., Roberts, R. W., & Sweeney, J. T. (2007). The social norms of tax compliance: Evidence from Australia, Singapore, and the United States. Journal of Business Ethics, 74(1), 49-64. https://doi.org/10.1007/s10551-006-9219-x

Castañeda-Rodríguez, V. M. (2025). Association between tax morale and the perceptions around tax compliance: an empirical study for Latin America. International Review of Economics, 72(2), 16. https://doi.org/10.1007/s12232-025-00487-w

Cheng, M., Fan, Z., Feng, C., & Tian, B. (2024). Cultural norms and tax compliance: Evidence from China. Journal of Economic Behavior & Organization, 227, 106720. https://doi.org/10.1016/j.jebo.2024.106720

Corona, F. J. F. (2024). Tax morale: A global scoping review from the cultural approach to economics. International Review of Economics, 71(2), 343-365. https://doi.org/10.1007/s12232-024-00446-x

Cui, H., Chen, S., Kong, D., & Luo, Y. (2025). Collectivist culture and corporate tax avoidance: evidence from China. Journal of Business Ethics, 200(2), 417-443. https://doi.org/10.1007/s10551-024-05850-5

Directorate General of Taxes (DJP). (2022). Directorate General of Taxes annual report 2022. Ministry of Finance of the Republic of Indonesia. https://pajak.go.id/sites/default/files/2023-12/Laporan%20Tahunan%20DJP%202022%20-%20English_0.pdf

Fleischman, G. M., & Stephenson, T. (2012). Client variables associated with four key determinants of demand for tax preparer services: An exploratory study. Accounting Horizons, 26(3), 417-437. https://doi.org/10.2308/ACCH-50167

Gangl, K., van Dijk, W. W., van Dijk, E., & Hofmann, E. (2020). Building versus maintaining a perceived confidence-based tax climate: Experimental evidence. Journal of Economic Psychology, 81, 102310. https://doi.org/10.1016/j.joep.2020.102310

Hamid, S. A. (2013). Understanding culture in tax compliance: Applying Hofstede’s National Cultural Dimensions to tax professionals in New Zealand. Proceedings of the ATTA’s 25th Annual Conference, ‘Tax Alchemy: Turning Silver into Gold., 1.

Hofstede, G. (1980). Culture and organizations. International Studies of Management & Organization, 10(4), 15-41. https://doi.org/10.1080/00208825.1980.11656300

Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. SAGE Publications. https://doi.org/10.1016/S0005-7967(02)00184-5

IFTAA. (2023, November 13). Rasio pajak Indonesia dalam 20 tahun terakhir. IFTAA. https://iftaa.id/rasio-pajak-indonesia-20-tahun/

Jeandry, G., & Mokoginta, R. M. (2023). Perceptions of tax corruption, quality of fiscus service, organizational climate, attitude of fiscus, taxpayer’s motivation, and taxpayer compliance. International Journal of Accounting & Finance in Asia Pasific, 6(2), 250–262. https://doi.org/10.32535/ijafap.v6i2.1788

Kirchler, E. (2007). The Economic Psychology of Tax Behaviour. Cambridge University Press. https://doi.org/10.1017/CBO9780511628238

Kogler, C., Olsen, J., Kirchler, E., Batrancea, L. M., & Nichita, A. (2023). Perceptions of trust and power are associated with tax compliance: A cross-cultural study. Economic and Political Studies, 11(3), 365-381. https://doi.org/10.1080/20954816.2022.2130501

Mangoting, Y., Widuri, R., & Eoh, T. S. (2019). The dualism of tax consultants’ roles in the taxation system. Jurnal Akuntansi dan Keuangan, 21(1), 30-37. https://doi.org/10.9744/JAK.21.1.30-37

Matten, D., Crane, A., & Moon, J. (2007). Corporate responsibility for innovation—A citizenship framework. In Business Ethics of Innovation (pp. 63-87). Springer Berlin Heidelberg.

Organisation for Economic Co-operation and Development (OECD). (2022). Tax administration 2022: Comparative information on OECD and other advanced and emerging economies. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2022/06/tax-administration-2022_5944859e/1e797131-en.pdf

Puklavec, Ž., Kogler, C., Stavrova, O., & Zeelenberg, M. (2025). Unobscuring the concept of tax morale: A systematic review of the literature. Journal of Business Ethics, 1-13. https://doi.org/10.1007/s10551-025-06218-z

Richardson, G. (2008). The relationship between culture and tax evasion across countries: Additional evidence and extensions. Journal of International Accounting, Auditing and Taxation, 17(2), 67–78. https://doi.org/10.1016/j.intaccaudtax.2008.07.002

Santioso, L., & Daryatno, A. B. (2025). The effect of digitalization of taxation, tax morale and modernization of the administrative system on taxpayer compliance. International Journal of Application on Economics and Business, 3(2), 682-695. https://doi.org/10.24912/ijaeb.v3i2.682-695

Seno, R., Hashim, H. A., Taha, R., & Abdul Hamid, S. (2022). The influence of Hofstede’s cultural dimension on tax compliance behaviour of tax practitioners. Asian Review of Accounting, 30(1), 77-96. https://doi.org/10.1108/ARA-10-2020-0153

Sepriana, R. (2021). Tax avoidance on poultry business owners in Blitar Regency, East Java Province. International Journal of Accounting & Finance in Asia Pasific, 4(1), 51-59. https://doi.org/10.32535/ijafap.v4i1.1032

Taing, H. B., & Chang, Y. (2021). Determinants of tax compliance intention: Focus on the theory of planned behavior. International Journal of Public Administration, 44(1), 62-73. https://doi.org/10.1080/01900692.2020.1728313

Torgler, B. (2005). Tax morale and direct democracy. European Journal of Political Economy, 21(2), 525-531. https://doi.org/10.1016/j.ejpoleco.2004.08.002

Tsakumis, G. T., Curatola, A. P., & Porcano, T. M. (2007). The relation between national cultural dimensions and tax evasion. Journal of International Accounting, Auditing and Taxation, 16(2), 131-147. https://doi.org/10.1016/j.intaccaudtax.2007.06.004

DOI: https://doi.org/10.32535/ijabim.v11i2.4677