Journal of Economic, Finance Research and Review (JEFRR)

Coretax Digital Tax Administration, Institutional Trust, And Sustainable Compliance Intention Among UMKM Taxpayers: The Moderating Role of Digital Literacy

Ambarwati, Supheni, Indrian, Novianti, Grevita Elma

20 July 2026 · Vol. 2, Issue 7, pp. 421-427

DOI: 10.65150/EP-jefrr/V2E7/2026-06

Abstract

The launch of Indonesia's Core Tax Administration System (Coretax DJP) in January 2025 represents a watershed moment in the country's tax digitalization trajectory. However, whether this digital transformation genuinely fosters sustainable tax compliance — particularly among UMKM (small and medium enterprise) taxpayers who constitute the most compliance-vulnerable segment — remains empirically unexamined. This study develops and tests a conceptual model that integrates the Technology Acceptance Model (TAM), Institutional Trust Theory, and Sustainable Tax Compliance Framework, examining how perceived usefulness, perceived ease of use, tax knowledge, and perceived data security of the Coretax system shape taxpayers' sustainable compliance intentions, mediated by trust to government and moderated by digital literacy. A Partial Least Squares Structural Equation Modelling (PLS-SEM) approach using SmartPLS 4.0 is employed with a sample of 220 UMKM taxpayers, supplemented by a 2×2 Experimental Vignette Methodology (EVM) to enhance causal validity. Nine hypotheses are formulated. Theoretically, this study is the first to integrate TAM, Institutional Trust Theory, and the Sustainable Tax Compliance Framework in an integrated model specific to Indonesia's digitalized tax context. Methodologically, the EVM design addresses common method bias limitations of conventional survey studies. Findings are expected to inform DJP's policy strategy for achieving sustainable compliance among the UMKM segment through optimized digital taxation platforms.

Keywords: Sustainable Tax Compliance, Technology Acceptance Model, Institutional Trust, Digital Literacy, UMKM, PLS-SEM

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Ambarwati, Supheni, Indrian, Novianti, & Grevita Elma (2026). Coretax Digital Tax Administration, Institutional Trust, And Sustainable Compliance Intention Among UMKM Taxpayers: The Moderating Role of Digital Literacy. Journal of Economic, Finance Research and Review, 2(7), 421-427. https://doi.org/10.65150/EP-jefrr/V2E7/2026-06

@article{Ambarwati2026,
  title   = {Coretax Digital Tax Administration, Institutional Trust, And Sustainable Compliance Intention Among UMKM Taxpayers: The Moderating Role of Digital Literacy},
  author  = {Ambarwati and Supheni and Indrian and Novianti and Grevita Elma},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {7},
  pages   = {421-427},
  doi     = {10.65150/EP-jefrr/V2E7/2026-06},
  url     = {https://doi.org/10.65150/EP-jefrr/V2E7/2026-06}
}

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