Digital economy and tax compliance: exploring the relationship between e-commerce adoption and tax payment motivation in Diyarbakir

Purpose- This study investigates the relationship between e-commerce usage and tax payment motivation in Diyarbakır, Türkiye, focusing on how digital payment methods, income levels, and tax fairness perceptions influence tax compliance. It addresses regional challenges in aligning digital economic practices with tax policies, aiming to provide insights into reducing informal economic activities through enhanced e-commerce transparency. Methodology- A cross-sectional quantitative survey of 675 participants was conducted, selected via Cochran’s formula to ensure representativeness. Non-parametric analyses (Chi-square, Cramér’s V) and regression models were employed to test hypotheses. Data reliability was confirmed by Cronbach’s Alpha of 0.91, and ethical standards were maintained through informed consent and anonymization. Findings- e-Commerce frequency positively correlates with tax motivation (β=0.42, p<0.01), while cash-on-delivery users exhibited 2.15 times higher tax evasion tendencies than digital payment adopters. Higher income levels strengthened tax compliance (β=0.37, p<0.01), though tax fairness perceptions only weakly influenced digital payment adoption (ρ=0.28, p<0.05). Regional disparities in digital infrastructure and socio-economic factors further shaped compliance behaviors. Conclusion- Digital payment integration and tax literacy campaigns are critical for improving tax compliance in developing regions like Diyarbakır. Policymakers should prioritize digitalization of SMEs, incentivize non-cash transactions, and strengthen audit mechanisms for cash-based e-commerce. Future research should explore longitudinal impacts of digital transformation on tax behaviors across diverse socio-economic contexts. Keywords: Tax compliance, e-commerce, digital payments, informal economy, regional economics