Determinants Of Corporate Tax Reporting Effectiveness: The Role Of Coretax System And Digital Literacy

Abstract

This study examines the determinants of corporate tax reporting effectiveness following the implementation of Indonesia’s Core Tax Administration System (Core Tax). Specifically, it investigates the effects of system usability, information clarity, and system reliability on tax reporting effectiveness, with digital literacy serving as a moderating variable. Drawing on the Technology Acceptance Model (TAM), this study employs a quantitative approach using survey data collected from corporate taxpayers. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that system usability, information clarity, and system reliability have a positive and significant effect on tax reporting effectiveness. Furthermore, digital literacy strengthens the relationship between system usability and tax reporting effectiveness, as well as between information clarity and reporting effectiveness. However, digital literacy does not significantly moderate the relationship between system reliability and reporting effectiveness. These findings suggest that technological improvements alone are insufficient without adequate user digital capabilities. This study contributes to the literature on digital tax administration by highlighting the importance of integrating system quality with taxpayer digital literacy to enhance compliance outcomes. The findings provide practical implications for tax authorities in improving digital tax systems and taxpayer assistance programs.