Analysis of Factors Influencing Individual Taxpayer Compliance: A Systematic Literatur Review

Abstract

Individual taxpayer compliance is a major challenge in optimizing state revenue, especially in Indonesia which relies on taxes as the main source of revenue. Although various fiscal reforms have been carried out, the level of compliance is still low due to administrative complexity, information inequality, and low tax literacy. This study aims to identify and synthesize the factors that affect individual taxpayer compliance in the digital era by reviewing the empirical literature for the period 2020–2025. The method used is a systematic literature review, with an analysis of more than 30 articles from nationally and internationally reputable journals. The results of the study show that tax compliance is not only influenced by economic factors, but also by a combination of tax literacy factors, trust in authority and perception of fiscal justice, digitization of tax administration, and behavior-based interventions (behavioral insights). Literacy and ease of procedure have been shown to increase voluntary compliance, while public trust and fiscal fairness strengthen tax morale. On the other hand, digitalization through the e-filing system and core tax system makes reporting easier, but its effectiveness depends on the readiness and digital literacy of users. Behavioral approaches such as nudges and simple reminder messages have proven effective in improving short-term compliance at a low cost, especially when adjusted to the social context and taxpayer trust level.