Understanding the relationship between tax knowledge and compliance under the self-assessment system

Purpose: This study aims to examine the impact of tax knowledge, taxpayer awareness, and the self- assessment system on individual taxpayer compliance, as well as to assess the moderating role of the self- assessment system in the relationship between tax knowledge, taxpayer awareness, and compliance. Method/approach: The population of this study was 100 employees from PT PLN Energi Primer Indonesia, selected using simple random sampling. Research data was collected by distributing questionnaires and analyzed using the SEM-PLS software application. Findings: Tax knowledge and taxpayer awareness have significant and considerable effects on individual taxpayer compliance, while the self-assessment system did not show a significant impact. Practical and Theoretical contribution/Originality: This research can explain the theory between the relationship between tax knowledge and tax awareness on tax compliance. This research also provides a general overview of the level of individual taxpayer compliance, as well as an overview of the self-assessment system which does not sequentially moderate the relationship between tax knowledge or taxpayer awareness and individual taxpayer compliance. Research Limitation: The limitation of this research is that it only focuses on three variables that influence tax compliance, namely tax knowledge, taxpayer awareness, and the self-assessment system.