Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Coretax Digital Tax Administration, Institutional Trust, And Sustainable Compliance Intention Among UMKM Taxpayers: The Moderating Role of Digital Literacy
Ambarwati, Indrian Supheni, Grevita Elma Novianti
20 July 2026 · Vol. 2, Issue 7, pp. 421-427
DOI: 10.65150/EP-jefrr/V2E7/2026-06
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What is this article about?
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.
Article at a glance
- Published
- 20 July 2026
- Volume / issue / pages
- Vol. 2, Issue 7, pp. 421-427
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
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
Cite this article
Ambarwati, Indrian Supheni, & Grevita Elma Novianti (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 Indrian Supheni and Grevita Elma Novianti},
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}
}Questions about this article
Who wrote this article?
Ambarwati, Indrian Supheni, Grevita Elma Novianti.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 7, pages 421-427, published by EP Journals Group on 20 July 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E7/2026-06 (https://doi.org/10.65150/EP-jefrr/V2E7/2026-06).
How do I cite this article?
APA: Ambarwati, Indrian Supheni, & Grevita Elma Novianti (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
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