Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025)

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The Effect of Tax Socialization, Tax Understanding, and Tax Sanctions on Taxpayer Compliance With Tax Awareness as a Moderating Variable: Evidence From Individual Taxpayers at Medan Polonia Tax Office

Authors
Eva Siahaan1, Aremi Evanta Tarigan1, Enda Noviyanti Simorangkir1, *, Nagian Toni1, Galumbang Hutagalung1
1Faculty of Economics and PUI Finance and Sociotechnopreneurship, Universitas Prima Indonesia, Medan, Indonesia
*Corresponding author. Email: endanoviyantisimorangkir@unprimdn.ac.id
Corresponding Author
Enda Noviyanti Simorangkir
Available Online 31 December 2025.
DOI
10.2991/978-94-6463-960-5_24How to use a DOI?
Keywords
Tax Socialization; Tax Understanding; Tax Sanctions; Tax Awareness; Taxpayer Compliance
Abstract

This study aims to examine the influence of tax socialization, tax understanding, and tax sanctions on taxpayer compliance, with tax awareness as a moderating variable. The research is motivated by the importance of improving tax revenue, which heavily depends on taxpayer compliance. A quantitative approach was applied by distributing questionnaires to 300 individual taxpayers registered at the Medan Polonia Tax Office. Data were analyzed using Partial Least Square–Structural Equation Modeling (PLS-SEM). The findings indicate that tax socialization, tax understanding, and tax sanctions positively and significantly affect taxpayer compliance. Furthermore, tax awareness successfully mediates the effect of tax socialization and tax sanctions on compliance but does not mediate the effect of tax understanding. These results highlight the critical role of taxpayer awareness in strengthening compliance behavior. The study provides practical implications for tax authorities to enhance socialization strategies, ensure fair sanction enforcement, and foster tax awareness as a key factor in achieving higher taxpayer compliance in Indonesia.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2025
ISBN
978-94-6463-960-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-960-5_24How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Eva Siahaan
AU  - Aremi Evanta Tarigan
AU  - Enda Noviyanti Simorangkir
AU  - Nagian Toni
AU  - Galumbang Hutagalung
PY  - 2025
DA  - 2025/12/31
TI  - The Effect of Tax Socialization, Tax Understanding, and Tax Sanctions on Taxpayer Compliance With Tax Awareness as a Moderating Variable: Evidence From Individual Taxpayers at Medan Polonia Tax Office
BT  - Proceedings of the International Conference on Economics, Business, Management and Accounting (ICEBesMA 2025)
PB  - Atlantis Press
SP  - 314
EP  - 324
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-960-5_24
DO  - 10.2991/978-94-6463-960-5_24
ID  - Siahaan2025
ER  -