i

THE INFLUENCE OF RELIGIOSITY TOWARDS

TAX COMPLIANCE IN

MICRO SMALL MEDIUM ENTERPRISE

BEKASI

SKRIPSI

By

Dina Dwilastri

008201400029

Presented to

The Faculty of Economics, President University

In partial fulfillment of the requirements for

Bachelor Degree in Economics Major in Accounting

PRESIDENT UNIVERSITY

Cikarang Baru – Bekasi

Indonesia

2018

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PANEL OF EXAMINERS APPROVAL SHEET

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CONSENT FOR INTELLECTUAL PROPERTY RIGHT

1. The Author hereby assigns to President University the copyright to the

Contribution named above whereby the University shall have the

exclusive right to publish the Contribution and translations of it wholly or

in part throughout the world during the full term of copyright including

renewals and extensions and all subsidiary rights.

2. The Author retains the right to re-publish the preprint version of the

Contribution without charge and subject only to notify the University of

the Intent to do so and to ensure that the publication by the University is

properly credited and that the relevant copyright notice is repeated

verbatim.

3. The Author retains moral and all proprietary rights other than copyright,

such as patent and trademark rights to any process or procedure described

in the Contribution.

4. The Author guarantees that the Contribution is original has not been

published previously, is not under consideration for publication elsewhere

and that any necessary permission to quote or reproduce illustrations from

another source has been obtained (a copy of any such permission should

be sent with this form).

Title of Skripsi: The influence of religiosity towards tax compliance in

Micro Small Medium Enterprise Bekasi

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5. The Author guarantees that the Contribution contains no violation of any

existing copyright or other third-party right or material of an obscene,

indecent, libelous or otherwise unlawful nature and will indemnify the

University against all claims arising from any breach of this warranty.

6. The Author declares that any named person as co-author of the

Contribution is aware of this agreement and has also agreed to the above

warranties.

Name Dina Dwilastri

Date April 15th

, 2018

Signature

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PLAGIARISM CHECK

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v

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ACKNOWLEDGEMENT

I would like to present my gratitude sincerely for the countless blessing

given from Allah SWT so that I can be able to finish the skripsi to embrace the

challenge in achieving the Bachelor Degree and one step ahead to reach the

future. I would not be able to attain this achievement without the will from Allah

SWT.

President University has delivered me lots of sweet memories, much of

skills and knowledge, and extraordinary people indeed. Therefore, I would like to

express my gratefulness and appreciation to the following people for their

endowment and contribution in creating this skripsi possible.

1. My family, especially for the unconditional love and pray, who always be

there in many complicated time for skripsi and campus life in President

University. Mom, dad, and brother who have given the unfailing support

to strengthen me and create positive mind with the distance apart as the

mood booster to encourage this research completion.

2. My advisor Sir Arie Pratama who has kindly spare his time for my skripsi

improvement, perfectionist character and patiently guiding me to have new

knowledge according to my skripsi and writing comprehension, and also a

friendly mentor. It is an honor to work and study under his supervision

who has a great vision for a student.

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3. Regional Office of West Java, Bogor (Mr. Bayu, Mrs. Vonita, Mr. Risang)

for their trust that they gave to me so the researcher can get the data of

taxpayer Micro Small Medium Enterprise in Bekasi.

4. My partner Muhammad Farhan who have been there for a happy and

tough situation which I experienced in the past two years of university.

Thank you for being the unstoppable bolster, excitement, good listener for

discussion, best partner and comfort zone at the same time.

5. For Juragan Kosan squad (Hilda Sri ayu, Charissa Destiara Putri, Dzalika

Amanda, Muthia Ulfah Dwirahma, and Rafael Pinto Raynanda). Thank

you for always accompanying in every class and lessons that we pass.

Thank you for every good moment made and all the things we’ve been

through.

6. To Ine Mutia, Adila minho, Indah suciati, Aura Kartika for your support

and encouragement during the skripsi writing. Thank you for every good

moment made and all the things we’ve been through.

7. To pejuang skripsi Sir Arie ( Ivana Salim, Moses Ivandy, Anita Evianti

Dzalika Amanda, Charissa Destiara) thank you for always cheer me up

when I am doing my thesis and always supported me until this skripsi is

finished.

8. To Eeq empad squad (Aktivani Naza, Janis Fazriyah, Ade Dwi). Thank

you for every good moment made and all the things we’ve been through

from matriculation until the last semester.

viii

9. To Irina Natasha and Novita for being a great teamwork in every

assignment, and a good friends when the researcher struggle in class

lesson. And all Taxation Accounting 2014 and friends from other major

that can’t be mention one by one, thank you for every moment that has

created and the sharing moments.

10. Lastly, to those who indirectly contributed in the skripsi, I would like to

thank you for every support in the completion of this study.

I realized that this skripsi is far away from the perfection; hence I would like

to apologize for it. Hopefully, this skripsi will be able to add more overview and

information regarding the topic to everyone who would need it.

Sincerely,

Dina Dwilastri

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DECLARATION OF ORIGINALITY

I declare that this skripsi entitled “The influence of religiosity towards tax

compliance in Micro Small Medium Enterprise Bekasi” is originally

written by myself based on my own research and has never been used for

any other purpose before. I, therefore, request for Oral Defense of the

skripsi.

Cikarang, Indonesia, April 15, 2018

Researcher,

Dina Dwilastri

(008201400029)

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TABLE OF CONTENT

COVER PAGE .................................................................................................... xii

PANEL OF EXAMINERS APPROVAL SHEET .............................................. ii

CONSENT FOR INTELLECTUAL PROPERTY RIGHT ............................. iii

PLAGIARISM CHECK ....................................................................................... ii

ACKNOWLEDGEMENT ................................................................................... vi

DECLARATION OF ORIGINALITY .............................................................. ix

TABLE OF CONTENT ........................................................................................ x

ABSTRACT ......................................................................................................... xii

INTISARI ............................................................................................................ xiii

CHAPTER I - INTRODUCTION ....................................................................... 1

1.1 Background of the study .............................................................................. 1

1.2 Research question ......................................................................................... 6

1.3 Research objectives ...................................................................................... 6

1.4 Significance of the study .............................................................................. 6

1.5 Writing system ............................................................................................. 7

CHAPTER II - LITERATURE REVIEW .......................................................... 9

2.1 Theoretical Review .................................... Error! Bookmark not defined.

2.1.1 Tax ......................................................................................................... 9

2.1.2 Tax Compliance .................................................................................. 10

2.1.3 Religiosity ........................................................................................... 11

2.2 Hypothesis development ............................................................................ 13

2.3 Theoretical Framework .............................................................................. 14

CHAPTER III - METHODOLOGY ................................................................. 15

3.1 Research Design ......................................................................................... 15

3.2 Operational Definition of Variables ........................................................... 15

3.2.1 Independent variable ........................................................................... 15

3.2.2 Dependent variable .............................................................................. 16

3.3 Sampling Design ........................................................................................ 17

3.4 Research Instrument ................................................................................... 18

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3.5 Statistical Analysis ..................................................................................... 20

3.5.1 Data Quality Test ................................................................................ 20

3.5.2 Descriptive statistics ............................................................................ 21

3.5.3 Classical assumption test ..................................................................... 23

3.5.4 Simple linear Regression Analysis ...................................................... 24

3.5.5 T-test.................................................................................................... 24

3.5.6 Coefficient of determinant (R2) ........................................................... 25

CHAPTER IV - RESULT AND DISCUSSION ............................................... 26

4.1 Respondents overview ................................................................................ 26

4.2 Description of research variable ................................................................. 29

4.3 Data Quality Test ....................................................................................... 30

4.3.1 Validity Test ........................................................................................ 30

4.3.2 Reliability Test .................................................................................... 32

4.4 Classical Assumption Test ......................................................................... 33

4.4.1 Normality Test..................................................................................... 33

4.4.2 Heteroscedasticity test ......................................................................... 34

4.5 Hypothesis Test .......................................................................................... 35

4.5.1 Simple Linear Regression ................................................................... 35

4.5.2 Coefficient Determinant ...................................................................... 36

4.5.3 T-Test .................................................................................................. 36

CHAPTER V - CONCLUSIONS AND RECOMMENDATIONS ................. 39

5.1 Conclusions ................................................................................................ 39

5.2 Limitations of Research ............................................................................. 39

5.3 Suggestions ................................................................................................. 40

5.4 Implication ................................................................................................. 40

REFERENCES .................................................................................................... 42

APPENDICES ..................................................................................................... 46

xii

ABSTRACT

The purpose of this research is to prove that religiosity as one of

psychological aspect that gives a positive influence toward tax compliance. The

religiosity was measured with four dimensions which are cognitive, cultic,

creedal, and devotional. Tax compliance was measured with three dimensions

which are calculate, reporting, and pay. Both of religiosity and tax compliance

also used an interval scale to measure the dimensions.

This research methodology that used is quantitative analysis with primary

data. The research was conducted in Micro Small Medium Enterprise (MSME) in

Bekasi with the population 222.815 MSME that registered as taxpayer. The

research was used Slovin formula that concluded that the sample of this research

was 100 MSME. The data questionnaire was divided into three sections. The data

was analyzed using Simple Linear Regression to test the influences and

hypothesis.

The result was found that there is one outlier from the sample so the

samples in this research are became 99 samples. The result showed those

religiosities are positively significant affect tax compliance. The R-square in this

study is 0,125 or 12,5%, which means the variation of independent variables

observed in this study.

Keywords: Religiosity, Tax compliance, MSME, Individual taxpayer

xiii

INTISARI

Penelitian ini bertujuan untuk membuktikan bahwa nilai agama merupakan

salah satu faktor psikologi yang memberikan pengaruh positif terhadap kepatuhan

pajak. Nilai agama diukur menggunakan empat dimensi diantaranya adalah

dimensi cognitive, cultic, creedal, dan devotional. Kepatuhan pajak diukur

menggunakan tiga dimensi diantaranya adalah dimensi perhitungan, pelaporan,

dan pembayaran. Kedua variable tersebut baik nilai agama dan kepatuhan pajak

juga menggunakan skala interval dalam mengukur setiap dimensi.

Metodologi penelitian yang digunakan adalah analisa quantitative dengan

data primer. Penelitian ini dilakukan kepada pemilik usaha mikro kecil menengah

di wilayah Bekasi dengan populasi sebanyak 222.815 pengusaha UMKM yang

terdaftar sebagai wajib pajak. Sample dari penelitian ini sebanyak 100 UMKM

dengan perhitungan menggunakan rumus Slovin. Data survey dibagi menjadi tiga

sesi. Data survey dalam penelitian ini di analisa menggunakan Simple Linear

Regression untuk mengetahui hubunngan antar variable dan untuk mengetahui

hasil hipotesis.

Hasil ditemukan bahwa terdapat satu outlier dala jumlah sample. Maka

dalam penelitian ini jumlah sample berubah menjadi 99 sample. Hasil

menunjukan bahwa nilai agama berpengaruh signifikan positif terhadap kepatuhan

pajak. Hasil dari R2 dalam penelitian ini adalah 0,125 atau 12,5% yang berarti

nilai variasi dalam variable bebas pada penelitian sebesar 12,5%.

Kata kunci: Nilai agama, kepatuhan pajak, UMKM, wajib pajak individu

1

CHAPTER I

INTRODUCTION

1.1 Background of the study

Tax compliance is a main topic of previous researcher that had

been done in order to analyze the factors of taxpayer willingness to

voluntarily comply their annual income. There are two functions of taxes

which is budgeter and regulerend function (pajak.go.id, accessed in

October 27, 2017). Budgeter function used as an instrument to gain

government fund for facilitate development of country that can be seen

from subsidize, facilities improvement, and services improvement of a

country. Regulerend function is part of government role in order to cover

an economic gap (redistribute someone who has higher income to

someone who has lower income).

Indonesia is developing country which has low tax compliance. It

can be seen from tax ratio of Indonesia was the worst in ASEAN countries

such as Singapore, Thailand, and Malaysia. The tax ratio of Indonesia in

2015 only took 10,7%, Singapore 13,6% , Thailand 16,3%, and Malaysia

14,3% (Worldbank, accessed in October 28, 2017). The biggest taxes

were collected from corporate income and individual income.

In DGT data, they reported that there are around 59 million of

Micro Small Medium Enterprise (MSME) that reflected 60% of state

income (detikfinance.com, accessed in October 30, 2017). Most entity

2

already withhold income tax article 21 of their employee (Kamleitner et al.

2012). Therefore the transparency of MSME income cannot be tracked

because only the owner itself who recorded their own income. It might be

difficult for government to know the annual income of MSME because

mostly MSME used self-assessment system that means the owner itself

held the income.

In July 1, 2016 government made a new program for taxpayer

called Tax Amnesty. The purpose of Tax Amnesty is forgiveness program

from government to taxpayer who did tax evasion. The procedure of tax

amnesty includes remove taxable income, remove tax sanction, remove

law sanction and also remove tax audit procedure in 2015 and the previous

year by doing settle all taxable income that taxpayer have with a

compensation. Tax amnesty program established in July 2016 and ended

in March 31, 2017 (pajak.go.id, accessed in October 27, 2017).

In March 3, 2017 the Financial Service Authority (FSA) published

an announcement letter in 16/DKNS/OJK/III/2017 about preparation of

Automatic Exchange of Tax Information (AEOI) program for period 2018.

This system was created in ending period 2016 with the aim to support

Foreign Account Tax Compliance and also for transparency information

(FATCA) (FSA, November 03, 2017). The purpose of AEOI is for better

tax perspective in the future. The Minister of Finance hopes with AEOI

system that will increase taxpayer willingness to comply tax.

3

Thus, it can be seen that the government plays an important role

for state income with purposes to increase welfare and wealth of citizens

from economic improvement. Therefore, it is the government’s duty to

make citizens follow and obey tax rules which can help economic grow

especially for developing country such as Indonesia. The evidence was

found that the realization in Bekasi never reached the target, the data was

presented above:

Table 1.1

Result of MSME Bekasi

Resources: Regional office of West Java III, Bogor (2017)

Gallup International (November 04, 2017) noticed that Indonesia

as one of the most religious country. Pancasila itself was evidence that

Indonesia believes the existence of God. Every religion has their own

Bible and the Bible taught people about daily life of previous time and the

problem solving from God to the messengers at that time. Citizens in

Indonesia always relate their daily life and make a decision with their

religion value. Moreover in Islamic (Al Baqarah ; 110) refer about Zakat

Description 2015 2016

Taxpayer Register 1,864,993 2,036,451

Taxpayer that register

annual tax return

1,134,037 1,199,889

Tax ratio target 72.50% 75.00%

Realization of Annual

Tax Return

561,541 628,925

Tax ratio 49.52% 52.42%

4

whether in Christian Protestant and Christian Catholic (Mathius 6:1-4)

refer about Sedekah state that any persons who adhere their belief are

needed to give a percentage of an income that explain in Bible to help

someone that needed.

Nowadays most of researchers focus on analyzing tax compliance

from noneconomic factors such as Torgler (2004); Saad (2011); Pratama

(2017);. There are two point of noneconomic factor which is external and

internal. External factor mean tax authority and government such as trust,

fairness of tax system, and audit to taxpayer. According to Torgler (2004)

researched found that tax morale of each country will higher if government

or tax authority complete their duty in good manner so the taxpayer trust

with politics of their state and feel satisfied. Another researcher is Saad

(2011) stated that tax fairness is positively related with tax compliance.

Internal factor mean psychological aspects of taxpayer to tax

himself-such as behavior, ethics, awareness, perception love of money and

Machiavellianism. According to Pratama (2017), several psychological

aspects of individual did not strong enough to prove a correlation between

Machiavellianism and love of money towards tax compliance in Bandung

employee. Surprisingly, nowadays some researcher were notice that

religiosity could influence to taxpayer willingness pay tax. According to

Pratama research proved that there’s a correlation between religiosity

towards tax compliance taxpayer religious value that expected to have a

positive outcome of their behavior and attitude (Pratama, 2017)

5

Another researchers that recognized the correlation between

religiosity towards tax compliance is Johnson et al (2001), Torgler (2011),

and Stack and Kposowa (2006). Johnson et al. (2001) indicate that

religiosity as a psychological of individual to believe the existence of God

by follow the command God that already state in the Bible which taught

people to have a positive attitude in daily life. Torgler (2011) result was

shows that religiosity are strongly influence individual tax morale. Stack

and Kposowa (2006) also state that unethical act to evade tax perception is

acceptable in population of someone who did not have religion.

Beside the positive relation between religiosity and tax

compliance, another researcher resulted in different findings. McKerchar

et al. (2013) found there is no strong evidence to prove that religiosity

affect tax morale because of Christianity (McGee, 2012) or even in Islam

(Jalili, 2012,) perception towards tax evasion depend on government

religiosity of a country whether they strictly or partly obey religion

regulation.

The motivation of researcher doing this research is to combine

several suggestions from Mohdali and Pope (2014); Burton et al. (2005);

Pratama (2017); Chau and Leung (2009), Mohdali and Pope (2014)

suggests to test religiosity for an individual who has micro small medium

enterprise. MSME play an important role to indicate individual perception

to taxpayer voluntarily paying tax (Burton et al. 2005). Since the results of

religiosity are inconsistent, Pratama (2017) suggested to test religiosity are

6

required to modify or add some indicator for accurate and reliable result.

However doing research in developing country are needed because low

intention of preventing unethical taxpayer to evade tax (Chau and Leung,

2009).

1.2 Research question

Based on the problem statement mentioned before, the following

research question is:

Is there any influence of religiosity toward tax compliance?

1.3 Research objectives

The aim of this researcher is to test religiosity value that affects

taxpayer compliance in Micro, Small and Medium Enterprises. Based on

the above problem formulation, the purpose of this research is:

To determine the influence of religiosity toward tax compliance.

1.4 Significance of the study

This research is expected to give widen knowledge, information,

and suggestion for the environment as follows:

1. For the owners of Micro, Small and Medium Enterprises (MSMEs) in

Bekasi City

This research is expected to motivate taxable entrepreneurs in this case

owners of Micro, Small and Medium Enterprises to voluntary comply

tax with the aim for social welfare of a country.

7

2. For Directorate General of Tax

This research is expected to contribute ideas for DGT to determine the

factor that influences the taxpayer’s compliance in order to increase

the tax compliance since DGT is policy maker to tax.

1.5 Writing system

Writing systems in this research are:

CHAPTER 1 INTRODUCTION

This section explains about the reason why the research happened,

some problem that can be used for research question, which mean that the

problem will become hypothesis for this research, in this section also

discussed about research objectives, significance of the study, and

systematics of writing.

CHAPTER 2 LITERATURE REVIEW

This section explains about theories, concepts, literature review

from previous research and also gives a hypotheses formulation in this

research

CHAPTER 3 METHODOLOGY

This section gives an illustration of the practical research method.

This section including explanation about variables and the operational

used, research design to explain the choosing data method and choosing

various study (Qualitative/Quantitative, Descriptive/exploratory/causal),

describe population and sample, sampling design, research instruments to

8

describe procedure and tools used, sources and methods of data collection,

and analytical methods used to generate a conclusion in this study.

CHAPTER 4 RESULTS AND DISCUSSION

This section gives an explanation of data analysis with description

on the statistical analysis and regression, and the interpretation of results in

accordance with the techniques used.

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

This section gives a conclusion of the research result, limitation

and weakness of this research, opinion for future research, and implication

on theories and practical

9

CHAPTER II

LITERATURE REVIEW

2.1 Tax

According to Indonesia tax law No 28 year 2007 of general

provision and tax procedure, tax defined as compulsory contribution to the

state which is payable by an individual or entity that is enforced based on the

law without any direct benefit in return and used to maximize social welfare

of citizens. According Waluyo (2011), tax is mandatory contribution that

enforce taxpayer to pay their tax payable based on the law without direct

feedback and the aim of tax is fund raising of government to complete their

duty organize public expenditure.

Mardiasmo (2003) stated the function of tax are budgeter and

regulerend.. Budgeter means that tax will be used as an instrument to raise

fund of government that someday the fund will be allocate to facilitate

development of country such as subsidize, facilities improvement, and

services improvement of a country. Regulerend means that tax can be used

as an instrument for government policy maker to control society living.

According to Nightingale (2002) there are four purposes of tax in UK which

is (1) Revenue raising (2) Redistribution of income and wealth (3) Economic

regulator and (4) Harmonisation.

10

From explanation above it can be concluded that tax is

enforcement from government to citizens who has an obligation as a

taxpayer (individual or entity) to share the percentage of their income that

already stated on the law without direct benefit. The purposes of tax itself

can be used as a government fund and tools for citizens to raise social wealth

by improving public expenditure, distribution, and government policy.

2.2 Tax Compliance

Palil (2010) stated that public finance, tax authority, economic

situation, and psychological aspects can be a consideration of tax

compliance (as cited in Pratama, 2017). Tax compliance also defined as

contribution of citizens to fulfill taxpayer obligation based law of country by

declare all income correctly, accurately, and paying tax liability in correct

manner (Palil, 2011). Mardiasmo (2011) stated in his book that there are

three systems to collect tax which are (1) Official assessment system (2)

self-assessment system (3) Withholding system. Official assessment system

means that tax authority plays an important role to calculate tax payable of

taxpayer. Self-Assessment system means that its taxpayer responsibilities to

calculate, pay, and report their own tax payable usually this system

happened in an individual who has their own business. Withholding systems

means give responsibilities to third parties (not tax authority) to calculate tax

payable of taxpayer usually happened in employee.

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Jones (2009) state material compliance and formal compliance are

the perspectives of tax compliance (as cited in Pratama, 2017). Material

compliance is a condition of taxpayer to fulfill their tax obligation which are

calculating and determine tax base (subject, object, tariff, payment

mechanism). Formal compliance is taxpayer condition regarding general

provisions and tax procedures. There are three requirement of taxpayer to

fulfill tax compliance which are pay, filling, and report their tax (Brown and

Mazur, 2003). Based on law of Indonesia Finance No 74/PMK.03/2012

(November 6, 2017) set that there are four requirement of taxpayer to fulfill

tax compliance, such as;

1. Report tax return in a correct time

2. Taxpayer did not has tax arrears for all tax article, except got permission

from tax authority regarding tax arrears

3. The financial statements are audited by public accountant or finance

authority from government with qualified or unqualified opinion for

three years

4. Taxpayer did not have criminal data related with tax based on on a court

decision that has had permanent legal force within the last five years.

2.3 Religiosity

Nowadays there is a lot of recent research that put religiosity value

influence tax morale. Pratama (2017) state that people who has high

knowledge of religion can prevent an individual to have negative attitude

12

because if someone has strong religion they will follow the law made by

God and law in society. Religious values are to encourage principle and

commitment of individual to act in society in a good way or bad way.

According to the function theory, religion is embodiment of

individual attitude, value, and behavior (Yeganeh, 2015). All religion

includes understanding and practices taught people about work values and

attitudes (Lambsdorff, 2002; Paldam, 2001). Religiosity itself is complex

and multidimensional (Yeganeh, 2015).

Weaver and Stansbury (2014) agreed that the function of religious,

knowledge, practices, and symbols are to encourage psychological of an

individual for decision making and personal identity. Mckernan and

Kosmala (2007) state that religion will lead people for being truthful in

order to express love to God. In contrast, Anderson et al. (2010) found that

religion did not give a strong evidence to prove that religion leads

someone to become cooperative and trustworthy. According to Galbraith

(2007) proved that level of religiosity affect an economic success. He also

tested religiosity using two dimensions which is extrinsic and intrinsic. In

his research, he found that an Intrinsic dimension shown a correlation with

entrepreneurial activity and lead to economic success.

Barro and McCleary (2003) think that religion values taught in

economic side to be a honest person and made a person to had ethic in

their life. Lehrer (2004) proposes that nowadays to enhance a positive

economic and demographic behavior aspect can come from religiosity. All

13

of religions are taught us to have a positive attitude regarding to Bible or

leader in their own belief. Bible and leader lead someone to have a

positive attitude not for them but for society.

Johnson et al. (2001) define religious commitment or religiosity as

implementation of their religious commitment to society that reflected

individual attitudes and behaviors. Stack and Kposowa (2006) researched

conclude that the perception of someone who did not have religion about

unethical behavior is acceptable. A larger sample size of 47 countries by

Richardson (2008) confirmed that level of religiosity has a negative

relationship towards tax evasion.

2.4 Hypothesis development

In recent studies, Benk et al. (2016) examine the influence of

religiosity on Turkey self-employed towards voluntary tax compliance and

enforced tax compliance. To determine the religiosity is used two

dimensions which are Interpersonal and Intrapersonal. The result was

found a positive correlation between religiosity and tax compliance. The

result also found that only intrapersonal dimension contributed

significantly to voluntary tax compliance. Pratama (2017) also examine

the effect of employee religiosity towards tax compliance in Bandung city

using three dimensions of measurement which are extrinsic religiosity,

intrinsic religiosity, and quest for religiosity.

14

According to Mohdali and Pope (2014), it is found that there is a

positive relation between religiosity and tax compliance in Malaysia using

mixed method. Beside the positive relation between religiosity and tax

compliance, another researcher resulted in different findings. Eiya et. al

examine the influence of religiosity on tax compliance in Nigeria. The

paper concluded that religious values alone do not play a significant role to

make the taxpayers liable for tax compliance. The previous researched

found a different finding on religiosity towards tax compliance. If taxpayer

has high acknowledge of religion and has high commitment on their

religion, they would voluntary pay their tax. The hypotheses that are going

to tested is

H1: There is a positive influence between religiosity toward tax

compliance

2.5 Theoretical Framework

Theoretical framework is provided to figure out the relation

between independent variable and dependent variable

Figure 2.1

Research model

Religiosity

X1

Tax Compliance

Y1

15

CHAPTER III

METHODOLOGY

3.1 Research Design

In this research, the researcher would like to use causal study.

Causal study is type of research with the purposes to explain the relation

between problem and one or more factors. Causal study explains that

variable X is the reason of variable Y (Sekaran and Bougie, 2013). The

researcher is conducted by using quantitative data analysis with survey

research. Survey method can be used to collect data in quantitative and

qualitative data. Moreover, survey is used as a tool to collect data in

exploratory, descriptive, and causal study (Sekaran and Bougie, 2013).

3.2 Operational Definition of Variables

3.2.1 Independent variable

In this research, the independent variable is Religiosity. Religiosity

is measured by using the four dimensions which are cognitive, cultic,

creedal, and devotional. There are eleven questions to test religiosity that

adapted from (Fukuyama, 1961). Cognitive is a dimension to get a

satisfaction of religion knowledge that received from sermons or religion

discussion. Cultic is a dimension of ritualistic in every religion. Creedal is

a dimension of what people believe encouraged the emergence of words

and deeds. Devotional is a dimension that refers to the consequences of

16

religious doctrine in general behavior which is not directly and specifically

defined by religion. The questionnaire used five likert scales. The highest

scale had 5 scores and the lowest scale had 1 scores. The highest scale

indicated the high level of religiosity whether the lowest scale indicated

the lowest level of religiosity.

3.2.2 Dependent variable

The dependent variable in this research is tax compliance. Since

MSME as a taxpayer who conduct self assessment system. The tax

compliance of MSME are measured by calculating their tax and their

income, reporting tax liability, and paying their tax liability. There are six

questions to test tax compliance that adapted from (Simanjuntak and

Mukhlis, 2012). The questionnaire used five likert scale. The highest scale

had 5 scores and the lowest scale had 1 scores. The highest scales indicate

the high level of tax compliance whether the lowest scale indicated the

lowest level of tax compliance.

Table 3.1

Variable operationalization

Vaiable Dimen

sion

Indicator Scale Number

of

question

Religiosity Cognit

ive

Confirmation of religion

knowledge in general to get a

satisfaction that received from

Interval 1-2

17

sermons or from religion

discussion

Cultic Ritualistic in every religions or

religion practices

Interval 3-7

Creeda

l

People believe being

encouraged by the emergence

of words and deeds

Interval 8

Devoti

onal

The consequences of religious

doctrine in general behavior

Interval 9-11

Tax

Complianc

e

Calcul

ate

i. Calculate the type of

tax liability

ii. Calculate their income

Interval 1-2

Report

ing

i. Timely in reporting

annual tax return

ii. Technique that is used

to report tax

iii. Register themselves to

KPP

Interval 3-4

Pay i. Timely in pay tax

ii. Technique that used to

pay tax

Interval 5-6

3.3 Sampling Design

In this research, the population that researcher choose is MSME in

Bekasi. They will be the best representation in this research since their tax

compliance in this place is still low. The actual realization for 2016 was

52.42% but was still far from target ratio which was 75.00% (Table 1.1).

The sample in this research is all taxpayer who has MSME, and all

18

religion major of taxpayer. The researcher distributes the questionnaire to

all owners of MSME in Bekasi. The MSMEs contribute 60% of state

income (detikfinance.com, accessed in October 30, 2017). Based on data

from Regional office of West Java III 2017, the population of MSME that

registered as taxpayer is 222.815. In this research, the researcher uses

Slovin formula to get the sample that can describe the population which is

as follows:

Description :

n : size of sample

N : size of population

E : percentage of error in taking the samples that can be tolerant. (Umar,

2005)

Calculation ( Minimum of Sample ):

3.4 Research Instrument

The researcher would like to used primary data. The primary data

that researcher used is primary data obtained from questionnaire that

distributed to respondents. The questionnaire distribution that researcher

choose is drop-off survey which means the researcher manually come to

19

their outlet directly and the questionnaire can be automatically collected

after the respondents completed filled the questionnaire. The questionnaire

contained of three sections. The first section is demographic information

such as gender, age, education, and major of religions. The second section

is religiosity measurement and the last section is tax compliance

measurement. This research used SPSS to obtained the result of

calculation from various method that occurred and analyze the research

problem

The scale of researcher used to measure the variable is interval

scale that consists of five levels. The score of each answer level are

presented below:

Table 3.2

Measurement scale

Grading statement Score

Strongly agree, always, every day, on time, 5

Agree, often, once a week, report late a week after the due date, pay

late a week after the due date

4

Neutral, sometimes, twice a month, report late on date 20 of next

month, pay late on date 20 of next month

3

Disagree, seldom, once a month, report late on the end of next

month, pay late on the end of next month

2

Strongly disagree, never 1

20

3.5 Statistical Analysis

3.5.1 Data Quality Test

3.5.1.1 Validity Test

According to Sekaran and Bougie (2013), Validity is an instrument

to test that the measurement used is reasonably with the concept. In this

research, to test the validity is used product moment Pearson correlation

approach. Testing is done by correlating the scores of items each question

with a total score

r =

Description:

n : Number of pairs of scores

∑XY : Sum of the products of paired scores

∑X : Sum of x scores

∑Y : Sum of y scores

∑x2 :

Sum of squared x scores

∑y2 :

Sum of squared y scores

The result of correlation coefficient is compared with r table. If the

correlation between the score of items a total that expressed and the total

score is more than 0.3, then, the item is declared valid and vice versa.

21

3.5.1.2 Reliability Test

According to Sekaran and Bougie (2013), reliability is an

instrument to test that the measurement is free from error. In this research

to test the reliability is used Cronbach’s alpha to indicate that the variables

are positively correlated to another.

Description :

n : Size of questionnaire item

∑σt2 : Sum of variance score on each item

σt2

: Total of variance

The result of measurement could be reliable if the scale of

Cronbach Alpha is more than 0,7

3.5.2 Descriptive statistics

Descriptive statistics is used to describe all collected data without

an intention for accepted a general conclusion (Sugiyono, 2012). The

respondents were asked to choose one from five possibilities. From the

answer then complied the assessment criteria for each item in question

based on percentage with the steps as follows:

a. The cumulative value is the sum of each question item which is the

answer of each respondents

22

b. Percentage is the cumulative value of the item divided by the

frequency value and then multiplied by 100%

c. Calculate the largest and smallest cumulative number. The number of

respondents is 99 people. The largest scale has 5 score while the

smallest scale has 1 score

d. The sum of largest cumulative is = 99 × 5 = 495 while the sum of

smallest cumulative is = 99 × 1 = 99

e. Determine the largest and smallest percentage value as presented

below

i. The largest percentage is = 495/495 × 100% = 100%

ii. The smallest percentage is = 99/495 × 100% = 20%

f. Calculate the value of the range where (The largest percentage score –

the smallest percentage score ÷ the number of scale points ). The

calculation is (100% - 20%) ÷ 5 = 16

Assessment classification based on the percentage of scores can be

seen in Table 3.3:

23

Table 3.3

Category of interpretation score

Percentage Category

20-36 Very bad

37-52 Bad

53-68 Neutral

69-84 Good

85-100 Very good

The result of calculation on the interpretation category above score

can be presented in the form of continuum line like the following picture:

3.5.3 Classical assumption test

3.5.3.1 Normality test

According to Ghozali (2016) normality test is an instrument to test

that regression model give a normal distribution or not. Normality test can

be invalid if the sample is small. In this research to conduct normality test

is used Kolmogorov-Smirnov method. The criteria to measure the

normality data is based on the value if it is higher than 0.05.

Very Bad Bad Neutral Good

20% 36% 52% 68% 100%

Very Good

84%

24

3.5.3.2 Heteroscedasticity test

The purpose of heteroscedasticity is to analyze the inequality

variance that occurs in regression model. The methods of

heteroscedasticity are Plot graph, Park test, Glejser test, and white test. In

this research is used Glejser test to make a decision of heteroscedasticity.

The process of Glejser test incurred regressing absolute residual value of

the independent variable with regression equation (Ghozali, 2016). The

criteria of heteroscedasticity are :

a. If the value Sig. >0.05, then there is no problem of heteroscedasticity

b. If the value Sig. <0.05, then there is a problem of heteroscedasticity.

3.5.4 Simple linear Regression Analysis

The purpose of single regression is to understand the relationship

between independent variable and dependent variable.

Y =

Description:

Y : Tax Compliance

α : Constant

β : Coefficient

ɛ : Disturbance error

3.5.5 T-test

According to Ghozali (2016) t-test usually used to test how far the

independent variable explains the dependent variable. The standard for t-

25

test judgement is if the level of significant more than 5% (0,05) means that

H0 is supported whether for Ha is not supported.

3.5.6 Coefficient of determinant ( )

According to Ghozali (2016) coefficient of determinant is a test to

measure the ability in explaining a variation of dependent variable. The

score of coefficient determinant is between 0 and 1. A low score of

coefficient determinant means the variation of dependent variable is

limited. However, if the score coefficient determinant almost reach one

score mean the independent variable can give all information to predict a

dependent variable.

26

`CHAPTER IV

RESULT AND DISCUSSION

4.1 Respondents overview

This research was conducted by distributing the questionnaire to

100 respondents who have taxpayer identification, operate their own

business and categorized as MSME. However in operate the SPSS the

researcher found there is 1 outlier from 100 respondents, thus, the sample

in this research became 99 respondents. The respondent was asked to fill

the questionnaire about demographic data. This section would like to

describe the demographic of respondents that contained about gender, age,

education, annual income, and religion. The result of respondent

demographic is presented below:

a. Gender

This section shows the gender of the respondent. The result of

respondent gender is presented:

Table 4.1

Gender of respondent

Gender Number of respondents Percentage

Male 62 63%

Female 37 37%

Total 99 100%

From Table 4.1 that presented above shown that 63 percent of

respondents are dominant with male taxpayer and 37 percent of respondents

are female taxpayer.

27

b. Age

This section shows the age of the respondent. The result of

respondent age is presented:

Table 4.2

Age of respondent

Age Number of respondent Percentage

<20 years old 3 3%

20 – 35 years old 42 42%

36 – 50 years old 43 44%

>50 years old 11 11%

Total 99 100%

From Table 4.2 that presented above shown that 44 percent of a

respondent is dominant in 36 – 50 years old taxpayer, and 42 percent of

respondent is 20 – 35 years old taxpayer. Whether >50 years old had 11

percent and the lowest is <20 years old which is 3 percent.

c. Education

This section shows the education level of the respondent. The

result of respondent education level is presented in Table 4.3.

28

Table 4.3

Education level of respondent

Education Number of respondent Percentage

Senior High School 5 5%

Diploma 38 39%

Bachelor 42 42%

Post Graduate 14 14%

Total 99 100%

From Table 4.3 that presented above shows that 42 percent of

respondent education are dominant in bachelor degree, and 39 percent of

respondent is diploma. Whether post graduate had 14 percent and the lowest

is senior high school which is 5 percent.

d. Religion

This section is presented about religion of respondent. The result of

respondent religion is presented in Table 4.4.

29

Table 4.4

Religion of respondent

Religion Number of respondent Percentage

Islam 35 36%

Christian 21 21%

Catholic 24 24%

Hindu 5 5%

Buddhist 13 13%

Other 1 1%

Total 99 100%

From Table 4.4 that presented above shown that 36 percent of

respondent religion is dominant in Islam, and 24 percent of respondent is

Catholic. Christian had 21 percent of respondent and Buddha had 13 percent

of respondent. Whether Hindu had 14 percent and the lowest is other which

is 1 percent.

4.2 Description of research variable

The questionnaire in this research consists of a dependent variable

and an independent variable. Religiosity has 11 items of questions whether

Tax Compliance has 6 items of questions. In this section would like to make

a conclusion by compare the answer of respondent with category of

30

interpretation score that already explain in Table 3.2. The conclusion of

respondent answer is presented below:

a. Religiosity

Appendix 1 shows that Bekasi taxpayers have a good religiosity in

Cognitive, Creedal, and Devotional dimension. However in Cultic

dimension show there are some questions got a neutral score and bad score.

Taxpayer answer regarding bible give a neutral result whether for religions

organization give a bad score.

b. Tax compliance

Appendix 2 shows that Bekasi taxpayer has a good score regarding

their tax compliance. However the method of report and pay use an

electronic give a neutral score in Bekasi taxpayer. It indicate that not all of

taxpayer in Bekasi implement the electronic system to report and pay their

tax liability.

4.3 Data Quality Test

4.3.1 Validity Test

In this section is would like to discuss the validity data of

questionnaire statement using Product Moment Pearson Correlation. The

questionnaire statement is valid if the total score greater than 0,3. The result

of validity test will be presented in Table 4.5 and Table 4.6:

31

Table 4.5

Validity test result of religiosity

Religiosity

Questionnaire

Pearson Correlation Description

Q1 0.619 Valid

Q2 0.610 Valid

Q3 0.757 Valid

Q4 0.644 Valid

Q5 0.470 Valid

Q6 0.724 Valid

Q7 0.801 Valid

Q8 0.362 Valid

Q9 0.639 Valid

Q10 0.428 Valid

Q11 0.708 Valid

Table 4.6

Validity test result of tax compliance

Tax Compliance

Questionnaire

Pearson Correlation Description

Q1 0.623 Valid

Q2 0.457 Valid

Q3 0.817 Valid

Q4 0.782 Valid

Q5 0.746 Valid

Q6 0.796 Valid

32

Table 4.5 and Table 4.6 show that all of the results from each

questionnaire have scores greater than the criteria 0,3. Therefore, it can be

concluded that both religiosity and tax compliance question items are valid.

4.3.2 Reliability Test

In this section would like to discuss the reliability data of

measurement that used is free from error using Cronbach Alpha. The

measurement is reliable if the scale of Cronbach alpha are greater than 0,7.

The result of reliability test will be presented in Table 4.7:

Table 4.7

Reliability test result

Cronbach

Alpha

N of items Variable Description

0.832 11 Religiosity Reliable

0.799 6 Tax Compliance Reliable

Table 4.7 shows that all of the results from each variable have

scores greater than the criteria 0,7. Thus, it can be concluded that both

variables (Religiosity and Tax Compliance) are reliable.

33

4.4 Classical Assumption Test

4.4.1 Normality Test

In this section it deals with the normality test of regression model

using Kolmogorov Smirnov. The criteria of normality test is the significant

value must greater than 0,05. The result of reliability test will be presented

in Table 4.8:

Table 4.8

Normality test result

One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 99

Normal

Parametersa,b

Mean ,0000000

Std.

Deviation 5,06610308

Most Extreme

Differences

Absolute ,067

Positive ,062

Negative -,067

Test Statistic ,067

Asymp. Sig. (2-tailed) ,200c,d

a. Test distribution is Normal

b. Calculated from data

c. Lilliefors Significance Correction

d. This is a lower bound of the true significance

34

Table 4.8 shows that the value of Asymp. Sig (2-tailed) using

Kolmogorov Smirnov has a greater score than the criteria 0,05. Therefore, it

can be concluded that the data are normally distributed.

4.4.2 Heteroscedasticity test

This section explains about heteroscedasticity test using Glejser

test in SPSS. The criteria of heteroscedasticity test is the significant value

must greater than 0.05. The result of reliability test will be presented in

Table 4.9 below:

Table 4.9

Heteroscedasticity test result

a. Dependent Variable: ABS

From Table 4.9 above, it indicates the score of heteroscedasticity

that stated significant result is 0,081 which mean the result is greater than

the criteria 0,05. So in conclude there’s no problem with heteroscedasticity.

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 10,132 1,560 6,494 ,000

rlg -,157 ,039 -,378 -4,016 ,081

35

4.5 Hypothesis Test

4.5.1 Simple Linear Regression

In this sections would like to show the result of simple linear

regression that will be presented in Table 4.10:

Table 4.10

Simple linear regression result

Variable Coefficient Std. Error t-Statistic Prob

C 11.34888 4,472357 2.537560 0.0128

RLG 0.256106 0.108292 2.364969 0.0200

Based on Table 4.10 above, the regression equation can be written

as follows:

Y=11.34888+0,2561606+ɛ

1. Constant = 11.34888

If the religiosity has 0 score, so the score of tax compliance will be

11.34888

2. Religiosity = 0.2561606

The score of Simple Linear Regression analysis in Religiosity

variable means if the religiosity increasing 1 score, it means tax compliance

will increase 0.2561606 or 25,6% and also the score of religiosity result is

positive so if religiosity increase the tax compliance also will increase.

36

4.5.2 Coefficient Determinant

In this section shows the result of coefficient determinant. The

score of R2

means that the variation of dependent variable is observed in this

research and the rest of the score is other variable that are not observed in

this research. The result of coefficient determinant will be presented in table

4.11:

Table 4.11

Result of coefficient determinant R2

Model Summary

Model R R Square Adjusted R

Square

Std. Error of

the Eestimate

1 .354a

.125 .116 5092

From Table 4.11 above indicate that 0.125 or 12,5% variation of

independent is observed in this research and the rest is 87,5% observed is

other variable that are not explained in this research.

4.5.3 T-Test

Based on T- test result that presented in Table 4.12 below shows

that the probability significant of religiosity is 0,0200 and the explanation as

follows:

a. Predictors: (Constant), rlg

37

1. The significant value of religiosity and tax compliance is below

the value of significant value α = 0,05, it means religiosity has significant

influence towards tax compliance. Therefore the hypothesis H1 is supported.

H1: There is a positive influence between religiosity towards tax

compliance

Table 4.12

Result of T-Test

Variable Coefficient Std. Error t-Statistic Prob

C 11.34888 4,472357 2.537560 0.0128

RLG 0.256106 0.108292 2.364969 0.0200

4.6 Discussion

This research is tested to an individual who has MSME around

Bekasi area who has an obligation to fulfill their own duty as a taxpayer to

comply the tax. It will bulit the awareness of owner MSME itself to

complete their tax obligation as a taxpayer. According to Burton et al.

(2005) tax compliance itself depends on responsibility of MSME owner.

This result is supported by previous research Benk et al. (2016)

result shows that there’s a significant positive influence between religiosity

with voluntary taxpayer to fulfill their obligation. He states the possibility

happened because in religion activity there’s same contribution between tax

38

with shadaqah. So in conclude he states it would develop a good morale to

voluntary contribute the money for helping purposes.

Another research that has significant positive influence is from

Pratama (2017) state that most of Indonesia citizen implement their religion

knowledge into their life practice. All of religions taught someone to have a

good morale in environment for an example are obey the rules in religions

and government. Religions itself can prevent a someone to have an negative

attitude and maybe religious people will avoid to do tax cheating because

they know cheating made someone to have a sin.

Torgler and Murphy (2004) state that every religion taught

someone about right or wrong in daily life practice. That theory is related

with tax morale because morale also determined right or wrong in daily life

practice. He also state that there is a possibility religiosity encourage

someone has higher tax compliance.

Mohdali and Pope (2014) argued there are many perceptions of

Malaysian citizen regarding religiosity and tax compliance. The first

perception is about the obligation not only just religion duty but also they

have to fulfill their duty as citizen such as pay tax. The second perception is

the value of giving and donation will fulfill religiosity requirement and will

make someone feels good inside. The third perception is religiosity taught

someone to be fair, so if someone realizes the function of tax is for fill the

economic gap it would automatically push a someone to contribute the

money for recover the economic gap of a country.

39

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

This research result can prove that there is a positive correlation

between religiosity towards tax compliance. This research also gives an

answer of previous research suggestion that government of Indonesia should

pay attention on religiosity perspectives in order prevent tax evasion. This

research also gives a value because the research was tested to the owner of

Micro Small Medium Enterprise and their perspective might accurate to

know an individual perception that can influence tax compliance.

5.2 Limitations of Research

This research is far from being perfect, there are some limitations

and weaknesses. The limitations that need to be improved in subsequent

studies are:

1. The sample did not spread to all MSME in Bekasi. The samples

only give a small contribution to describe all MSME perception in

Bekasi.

2. The method of drop-off questionnaire is quite hard to implement for

the owner MSME since they have their own activity. So there might

a possibility that they did not answer seriously.

40

5.3 Suggestions

From an explanation about the result and limitation that exist in

this research, several suggestions can be given:

1. Future research is expected to spread the sample not only in one

city, and the sample in capital city might give a big contribution to

describe the sample.

2. Future research is expected to spread the questionnaire using two

methods which is electronic questionnaire and drop-off

questionnaire. It might minimize the respondents that did not fill

the questionnaire seriously.

3. Future research also expected to add sense of love variable not only

love to god (religiosity) but maybe future research can add sense of

love of their own country (nationality)

4. For Directorate of general tax (DGT) tax office might give an

intention to socialization the electronic system to create easier

procedure for taxpayer since in this result the implementation of

electronic tax system is not worked in MSME

5.4 Implication

The different countries have different tax systems and regulation.

This research might be helpful to gain tax ration especially in developing

country such as Indonesia who has lack of an intention to prevent tax

41

evasion. And also this research might give a value to prevent tax evasion

from MSME in Indonesia since there are a lot of MSME that evade the tax.

According to this study, there is a positive correlation between religiosity

towards tax compliance in MSME Bekasi.

This research observed the relationship between religiosity in

MSME Bekasi may improve their awareness to voluntary obey the tax

regulation. This research might give an intention to Directorate General Tax

(DGT) to make a new rule. The DGT can invite a leader from religions

organization while have a socialization so that leader can spread the

socialization about tax and the leader also expected to build the taxpayer to

be more religious that will impact tax compliance.

42

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Purnomo, S. E. (2017). OJK Keluarkan Aturan Dukung Implementasi Automatic

Exchange of Tax Information (AEOI). Otoritas jasa keuangan. Retrieved

from http://www.ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/OJK-

Keluarkan-Aturan-Dukung-Implementasi-Automatic-Exchange-of-Tax-

Information-(AEOI).aspx (November 03, 2017)

Religion prevails in the world. (2017). Gallup International. Retrieved from

http://gallup-international.bg/en/Publications/2017/373-Religion-prevails-

in-the-world (November 04, 2017)

Tax revenue (% of GDP) (2017), Worldbank. Retrieved from

https://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS?end=2015&l

ocations=ID-VN-SG-TH-MY&name_desc=true&start=1972&view=chart

(October 28, 2017)

Undang-undang

Undang-Undang Republik Indonesia, Nomor 28 Tahun 2007 Tentang Ketentuan

Umum Dan Tata Cara Perpajakan.

46

APPENDICES

Appendix 1: Religiosity result

Cognitive Dimension

No Questions Strongly

disagree

Disagree Neutral Agree Strongly

agree

Descri

ption

1. Attend

religions

discussion are

needed to

satisfy my

religion

knowledge

2 11 15 45 26 Good

2. Suggestion

from religious

leader are

acceptable for

me rather than

other

4 14 21 42 18 Good

Cultic Dimension

No Questions Never Seldom Sometimes Ofte

n

Alway

s

Descripti

on

3. How many times

that I spend to

pray

6 12 20 33 28 Good

4. How many times

that I spend to

read bible

24 19 21 27 8 Neutral

5. How many times 28 21 22 22 6 Bad

47

that I spend to

join a religion

organization/disc

ussion

6. How many times

that I spend to

give finance

contribution for

religions

organization

activities

10 11 19 35 24 Good

7. How many times

that I spend to

give a

percentage of

my income for

someone as

already explain

in bible

9 8 17 28 37 Good

Creedal Dimension

No Questions Strongly

disagree

Disagree Neutral Agree Strongly

Agree

Description

8. I think it’s

more

important to

spend my

money to

religions

organization

rather that

government

3 7 26 43 20 Good

48

Devotional Dimension

No Questions Strongly

disagree

Disagree Neutral Agree Strongly

agree

Description

9 I believe

that religion

can lead me

to become a

better

personality

2 1 17 46 33 Good

10 I believe

someone

who has

strong

religion

belief will

be more

appreciate

in

environment

4 8 23 42 22 Good

11 I believe

that

religions

can guide

me for

making

decisions

2 2 13 53 29 Good

Adapted from Fukuyama (1961)

49

Appendix 2: Tax compliance result

Calculate Dimension

No Question Never

calculate

any tax

Seldom Sometimes Often Always Description

1 As a

taxpayer, I

always

calculate tax

liability as

follow

4 8 20 46 21 Good

Never Once a

month

Twice a

month

Once

a

week

Everyday Description

2 As a

taxpayer, I

do the

bookkeeping

and

recording

properly

4 14 18 38 25 Good

Reporting Dimension

Never Report

late on

the end

of next

month

Report

late on

date 20

of next

month

Report

late a

week

after

the due

date

On

time

Descr

iption

3 Taxpayer 8 7 9 43 32 Good

50

report annual

tax report

Never Seldom Someti

mes

Often Alway

s

Descr

iption

4 As a taxpayer,

I take an

advantage of e-

filling to report

annual tax

return

24 15 15 21 24 Neutr

al

Pay Dimension

Never Pay late

on the

end of

next

month

Pay late

on date

20 of

next

month

Pay

late a

week

after

the due

date

On

time

Descri

ption

5 Taxpayer pay

their tax

liability

8 6 7 44 34 Good

Never Seldom Someti

mes

Often Alwa

ys

Descri

ption

6 As a taxpayer,

I take an

advantage of e-

billing to pay

tax liability

24 11 12 28 24 Neutra

l

Adapted from Simanjuntak & Mukhlis (2014)