Digital Literacy, Tax Knowledge, and MSME Tax Compliance in the Era of Digital Taxation

Sherly Adellya; Umatun Markhumah

doi:10.69725/jebi.v2i4.318

Authors

Sherly Adellya Program of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java, Indonesia, 57761
Umatun Markhumah Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java, Indonesia, 57761

DOI:

https://doi.org/10.69725/jebi.v2i4.318

Keywords:

Digital literacy, Tax knowledge, MSME tax compliance, Digital taxation

Abstract

Purpose: The study tests the role of digital literacy and tax knowledge as antecedents to MSME tax compliance in digitally mediated taxation systems, integrating a conceptual divide in previous research.

Method: A thematic and structural analysis of the literature: Digital tax compliance studies Contributing to digital tax research, SLR proponents an analysis based on both thematic synthesis and bibliometric mapping to (1) provide a broad scope depiction by synthesizing empirical evidence, and (2) create insights into structural patterns.

Findings: The findings also show that digital literacy and tax knowledge positively influence on MSMEs tax compliance, but the relations are interdependent instead of independent. Digital literacy help the taxpayer in using electronic tax systems to reduce procedural complexities and operational mistakes and tax knowledge supports them in correct interpretation of tax rules. Enhancements in compliance are particularly significant when both these features present, which can account for the mixed results associated with digital tax reform reported in the literature. This bibliometric analysis shows a nascent move to capability-based theories of compliance and continued dichotomy between technical and cognitive viewpoints.

Novelty: This paper contributes to tax compliance literature by theorising digital literacy and tax knowledge as complementary competences which interact to shape compliance conduct in digital taxation contexts.

Implications: The results imply that digital tax reforms should be introduced as capacity-building programs, incorporating the enhancement of digital skills and adaptive tax education for inclusive and sustainable MSME tax compliance.

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Author Biographies

Sherly Adellya, Program of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java, Indonesia, 57761

Sherly Adellya is a researcher in accounting and taxation studies affiliated with the Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests include taxation, MSME tax compliance, digital literacy, and public finance in the digital economy. Her research focuses on the influence of digital literacy and tax knowledge on MSME tax compliance in the digital age, using the Slippery Slope Theory to explain taxpayer behavior through the interaction of trust in tax authorities and the power of regulation. Applying quantitative and empirical research methods, supported by Systematic Literature Review (SLR) and bibliometric analysis using VOSviewer, her work contributes to evidence-based tax policy development and improved voluntary tax compliance among MSMEs in emerging economy contexts.
Umatun Markhumah, Department of Accounting, Faculty of Communication and Business, Universitas Muhammadiyah Karanganyar, Karanganyar, Central Java, Indonesia, 57761

Umatun Markhumah, S.E., S.H., M.Ak., CTC. is a lecturer and researcher in accounting and business studies with interdisciplinary academic qualifications in economics, law, and accounting. She is affiliated with Universitas Sebelas Maret and Universitas Muhammadiyah Karanganyar, Indonesia. Her research interests include taxation, financial accounting, corporate governance, and public finance, with a particular focus on tax compliance, tax justice, and regulatory effectiveness. Using quantitative and empirical research methods, her work contributes to evidence-based fiscal and accounting policy development in emerging economy contexts.

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