a Behavioral Study on Voluntary Compliance of E - Commerce Tax

The growth of Internet and electronic commerce (e-commerce) in Indonesia can become a potential income tax. However, some of the benefits of e-commerce business also poses some problems for taxation. Actually in Indonesia, income tax rule of e-commerce has been set in the regulation by issuing SE-62/ PJ/ 2013, but it can not increase the tax compliance. Thus, the purpose of this study is to reveals several factors that affect the voluntary compliance of person who is doing online business associated with the e-commerce tax, through the viewpoint of the Theory of Planned Behavior. This study is a qualitative research by using interpretive paradigms and phenomenology approach. Informants, who involved in this study, are people earn income from online business transactions; both of them make the online business as a main income or other income. The data of the study is obtained from interviews with informants related to their views of voluntary compliance on taxation of e-commerce business. The results indicated several factors that affect voluntary compliance of e-commerce business based on the Theory of Planned Behavior. Subjective norm consist influence of the social environment around taxpayers. Attitude toward the behavior consist lack tax morality of taxpayers and the fairness of tax system. Perceived behavioral control consist low tax audit and the weak supervision of tax authorities. Interestingly, the additional finding of the study is mostly informant behave to avoid the tax regulations. The study concluded if the e- commerce tax rules not conducted properly it will affect to the behavior of the business environment. Many traditional businessmen will switch their business to e-commerce in order to avoid taxes. This study will contribute to the Indonesia Taxation Authority of e-commerce tax for increasing the income tax and voluntary compliance.