In their capacity as the primary source of state revenue, taxes assume an ever-more significant function in underpinning the nation's sustainable growth. Sustainable development is necessary to achieve social welfare and ensure the fair and equitable distribution of income throughout society. While the definition of tax is not explicitly defined in the articles of Law Number 7 of 2021 of the Republic of Indonesia concerning the Harmonization of Tax Regulations (HPP Law), it can be understood from the General Explanation of the HPP Law that Tax may be defined as a compulsory financial contribution to the state that is levied on individuals or entities by law without the provision of direct recompense. These taxes are utilised by the government for the general benefit of the community.

This theory emphasizes how individuals interpret events and how these interpretations relate to their thinking and behavior. The theory was first proposed by Heider (1958). According to the theory, when people observe the behavior of others, they try to determine if the behavior is the result of internal or external forces. In the context of taxpayer behavior, attribution theory helps explain the factors underlying compliance or noncompliance with tax obligations. By identifying the internal and external factors that influence compliance, tax authorities and other stakeholders can design more effective interventions to encourage compliance and increase tax revenue.

The regulation of the Director General of Taxes, PER-06/PJ/2018, amends PER-41/PJ/2015, which secures electronic transactions for online tax services. This amendment defines an electronic tax return as a tax return in electronic document form. E-filing can be defined as the electronic submission of an annual tax return through the Directorate General of Taxes website or an electronic tax return service provider's website. E-filing is a modern, efficient way to report an annual income tax return (SPT) via the Internet without visiting the tax office in person.

The Organisation for Economic Co-operation and Development (OECD) defines tax literacy as the ability to understand and effectively apply tax information and knowledge to fulfil tax obligations and make informed decisions about tax matters. It is incumbent upon taxpayers to comprehend a number of elements integral to the functioning of the Indonesian tax system. These include the General Provisions and Procedures for Taxation, in addition to tax functions, tax laws and tax regulations.

In accordance with Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (HPP Law), tax sanctions are defined as "severe actions imposed on taxpayers who violate tax regulations". In the context of Law Number 28 of 2007, the distinction is made between two categories of tax sanctions: administrative and criminal. Administrative sanctions may take the guise of interest, fines or increases, while those of a criminal disposition may entail imprisonment. Administrative sanctions are the lightest sanctions and are generally imposed for unintentional violations.

According to the large Indonesian dictionary, compliance is defined as obeying orders or rules. As posited by Septianingrum et al. (2023), tax compliance can be defined as the degree to which a taxpayer is willing to fulfil their tax obligations in accordance with the prevailing regulations. This concept is characterised by the absence of any requirement for inspection, thorough investigation, warning, or threat of legal or administrative sanctions. There are two kinds of compliance: formal and material (Haryanti et al., 2022). Formal compliance is defined as the fulfilment of taxpayers' obligations in accordance with the provisions set out in the relevant tax legislation. Material compliance, on the other hand, is when taxpayers fulfill all tax provisions substantively or essentially. Material compliance can also include formal compliance.

In accordance with Sugiyono's assertion (2017: 84), a hypothesis is a temporary answer that must be verified using collected data. In this case, the authors use a causal hypothesis, which is a guess at the formulation of a causal problem that is still temporary: testing the correlation between two or more variables.

Previous research by Maulidina and Nurhayati (2023), I Gusti Agung Prama Yoga et al. (2022), Andro Julio Hasintongan (2021), and Yetti Mulyati and Juli Ismanto (2021) shows a significant positive correlation between E-Filing application and individual taxpayer compliance. It is evident that there is a direct correlation between the level of e-Filing application and the level of compliance,

with higher levels of application corresponding to higher levels of compliance. However, no research has been conducted to date that measures the effect of E- Filing implementation on individual taxpayer compliance in submitting annual tax returns at the Department of Industry, Trade, Cooperatives, Small and Medium Enterprises of the Jakarta Special Capital Region.

H₁: E-filing has a significant positive effect on individual taxpayer compliance.

Related to attribution theory, knowing the factors that influence a person's understanding of taxes would allow the government and related institutions to design more effective education and socialization programs to increase taxpayer knowledge. According to research by Septianingrum et al. (2023), Mulyati and Ismanto (2021), and Haryanti et al. (2022), the test results show a significant positive correlation between tax understanding and compliance among individual taxpayers. Taxpayers who understand the provisions related to their tax rights and obligations, as well as the deadline for submitting tax returns and the tax system used to calculate, pay, and deposit taxes, are more likely to comply. The higher a person's understanding of taxation, the higher individual taxpayers’ (WPOP) compliance in carrying out their tax obligations.

H₂ = Tax understanding positively affects individual taxpayer compliance.

Attribution theory is a highly relevant framework for understanding how individuals respond to tax sanctions. It helps us understand how taxpayers interpret the reasons behind the application of tax sanctions and how these interpretations affect their future behavior. In their research entitled "The Effect of E-Filing Implementation, Tax Knowledge, and Tax Sanctions on Taxpayer Compliance in Ministry of Education and Culture Employees," Mulyati and Ismanto (2021) found a significant and positive relationship between tax sanctions and individual taxpayer compliance, as measured by assessment indicators in reporting and payment, as well as the level of sanctions applied. It is widely acknowledged that tax sanctions can effectively suppress taxpayers' inclination and initiative in fulfilling their tax obligations, thereby enhancing compliance with annual tax return submission.

H₃ = Tax sanctions have a significant positive effect on individual taxpayer compliance.

Based on existing theories and previous research reviews, this research's framework can be described as follows:

This research used a causal design, which is used to analyze the influence of one variable on others by testing a hypothesis. The independent variables incorporated within the present study encompass the following:

X1: Application of E-Filing (EF)

X2: Level of understanding of taxation (PP) X3: Tax sanctions (SP)

The dependent variables are:

Y: Individual Taxpayer Compliance (KP)

This research is based on 1,199 employees of the Department of Industry, Trade, Cooperatives, and Small and Medium Enterprises of the Province of Jakarta in 2024. The study used probability and simple random sampling. Using the Slovin formula with a leeway percentage of 5%, it turns an employee size of 300 is needed.

The research was conducted among employees of the PPKUKM Office, ranging from ASN to non-ASN, by distributing questionnaires to 300 respondents. Information regarding ASN and non-ASN employees was collected from the PPKUKM Service Personnel Subgroup. Data was collected from April 2024 for PJLP employees and from November 2024 for ASN and TA employees. Of the 300 respondents, 119 were civil servants, 12 were PPPK employees, 155 were PJLP employees, and 14 were experts.

The research sample is limited to employees within certain agency, namely the DPPKUKM Prov. DKI Jakarta and the Annual Tax Return submission period is limited to 2023 which is reported in 2024.

This research uses a questionnaire method, which involves giving respondents a questionnaire with statements and a guide. Questionnaires were distributed to respondents to measure their perceptions using the Likert scale. The statements presented to respondents in the questionnaire employed a five- point scale, ranging from one to five, to ascertain their opinions on specific subjects.

The subsequent analysis of the collected data is a process that occurs after the collection of data from all respondents has been completed. Data analysis activities encompass the following the grouping of data based on variables and the categorisation of respondents, the presentation of data for each variable studied, the performance of calculations to test the hypothesis to be proposed (Sugiyono, 2017, p, 244). The tools used to process the data are the Smart PLS version 4 application. Validity and reliability tests represent external models, whilst multiple linear regression analysis, coefficient of determination and hypothesis testing (T-statistic test) are representative of the internal models.

Validity testing is a measure of the degree to which a measuring instrument is both valid and reliable. An instrument that is valid indicates a high level of validity, while a low validity value indicates a less valid instrument. Researchers use the following criteria: if the value is >0.7, the instrument is valid; if the value is <0.7, the instrument is invalid.

Reliability testing determines the level of reliability of the instrument used. Reliability implies that an instrument will consistently collect reliable data because it is a good instrument. A reliable instrument provides reliable data. A variable is considered reliable if Cronbach's Alpha value is greater than 0.6. In other words, if the research is conducted again at different times and in different spaces, the resulting data will be consistent. Conversely, if α < 0.6, the variable is considered less reliable, meaning that if research is conducted again with different time and space, the resulting data will differ.

A low R² suggests the independent variables don't explain much of the dependent variable's variation. Conversely, an R² near 1 implies the independent variables offer almost all the data required to forecast the dependent variable.

The objective of hypothesis testing in this study is to ascertain which hypothesis is to be accepted. The objective of this study is twofold: firstly, to provide a response to the initial problem formulation proposed by the researcher, and secondly, to contribute to the advancement of the field through the dissemination of the findings. The present study employs hypothesis testing to

ascertain the impact of variables X1 (e-filing application), X2 (level of understanding of taxation), X3 (tax sanctions) on variable Y (compliance of individual taxpayers).

This analytical instrument is utilised to forecast the impact of two or more independent variables on a dependent variable. Furthermore, it assists in determining the existence of a functional relationship between multiple independent variables and a single dependent variable. This analysis determines if the variables have an influence, measures the strength of the influence, and makes predictions based on the influence's strength and weakness.

Y = β1X1 + β2X2 + β3X3 + e (1)

Description:

Y = Individual Taxpayer Compliance (KP) X1 = Implementation of E-Filing (EF)

X2 = Level of Understanding of Taxation (PP) X3 = Tax Sanctions (SP)

β = Coefficient of Variable X

e = Confounding Factors Outside the Model (error)

This test aims to describe data based on the mean, standard deviation, maximum, minimum, and p-value of each variable. In this study, we will use the following variables: X1 (E-Filing/EF application), X2 (level of understanding of taxation/PP), and X3 (tax sanctions/SP), as well as the variable Y (taxpayer compliance/CP).

Table 2. Descriptive Analysis Results

As shown in the table above, the mean value of E-Filing Implementation (EF) is 4.019, with a standard deviation of 0.750 and values ranging from a minimum of 3,000 to a maximum of 5,000. The level of understanding of taxation (PP) has a mean of 4.209, a standard deviation of 0.748, a minimum value of 3,000, and a maximum value of 5,000. The value of tax sanctions (SP) has a mean of

4.321, a standard deviation of 0.761, a minimum value of 3,000, and a maximum value of 5,000. The Taxpayer Compliance (KP) variable has a mean of 4.279, a standard deviation of 0.755, a minimum value of 3,000, and a maximum value of 5,000.

Figure 2. Validity Test Results

Source: SmartPLS Version 4.0, processed in 2025

Based on the loading factor values in the path diagram above, there are no indicators with a loading value below 0.7. Therefore, these variables are considered valid. According to the output diagram, the loading factor has met the criterion for convergent validity, as the indicator value is above 0.7.

There are two methods for conducting a reliability test: Cronbach's Alpha and composite reliability. A questionnaire is considered reliable if its composite reliability value is greater than 0.7 and its Cronbach's alpha value is at least 0.6.

Table 3. Reliability Testing Results

Based on the reliability output results above, it can be concluded that the indicators used for variables X1, X2, and X3 are reliable and able to measure their constructs because all values are greater than 0.6. Therefore, the statement used to measure variable X is believed to be consistent when repeated.

The coefficient of determination, denoted by 'R²', is a statistical term which quantifies the relationship between the independent and dependent variables in a linear regression model.

Table 4. Determinant Test Results

As demonstrated in the above table, the R-squared value for taxpayer compliance (Y) is 0.541, while the adjusted R-squared value is 0.536. This finding suggests that taxpayer compliance is predominantly influenced by the implementation of e-filing, the extent of taxpayers' comprehension of taxation, and the imposition of tax sanctions, accounting for 54.1% of the observed variance. The residual influence is attributed to other indicators and variables that were not examined in this research.

Table 5. Hypothesis Test Results (Path Coefficients)

Based on Table 5 above, the exogenous variables have a T-statistic value

>1.96 or a P-value <0.05. The analysis shows that the application of E-Filing significantly affects taxpayer compliance. Table 5 shows that the T statistic value is 5,998, which is greater than 1.96. The P value is also less than 0.05, at 0.000. These results prove that E-Filing significantly increases the compliance of individual taxpayers in submitting annual tax returns to the tax office. It also proves that E-Filing significantly affects the compliance of individual taxpayers in submitting annual tax returns to the PPKUKM Office of the Jakarta Province. The analysis shows that the level of understanding of taxation significantly affects taxpayer compliance. The T-statistic value is 3.448, which is greater than 1.96, and the P-value is 0.000, which is less than 0.05. This proves that the level of understanding of taxation significantly affects individual taxpayers' compliance with submitting annual tax returns to the PPKUKM Office of the Jakarta Province. As seen in Table 5 above, tax sanctions significantly affect taxpayer compliance. The T statistic value is 5.432, which is greater than 1.96. This can also be proven by the P value, which is 0.000 or less than 0.05. These results prove that tax sanctions significantly impact individual taxpayers' compliance with submitting annual tax returns. Therefore, tax sanctions significantly impact the compliance of individual taxpayers in submitting annual tax returns within the PPKUKM Office of the Jakarta Province.

In accordance with the findings of the hypothesis test enumerated in Table 5, the e-filing application variable has been determined to be statistically significant (p-value < 0.05). Consequently, the null hypothesis (H0) is refuted,

and the alternative hypothesis (H1) is substantiated. It is therefore evident that the e-filing application variable exerts a substantial influence on taxpayer compliance in submitting the annual tax return. It is hypothesised that an increase in the number of individuals utilising e-filing for their tax obligations will concomitantly result in an escalation in the level of compliance with the submission of annual tax returns.

This is consistent with the findings of Maulidina and Nurhayati (2023), I Gusti Agung Prama Yoga et al. (2022), Andro Julio Hasintongan (2021), and Yetti Mulyati and Juli Ismanto (2021), they concluded that e-filing has a significant positive effect on individual taxpayer compliance. Since the introduction of the e-filing system, taxpayers have not necessitated a visit to the tax office to submit their annual tax returns. The e-filing system is also more environmentally friendly as it reduces paper usage. It can help taxpayers calculate taxes more quickly and accurately and can be accessed wherever taxpayers are, as long as they have an internet connection.

Based on the results of the hypothesis test in Table 5, the significance value (p-value) for the level of understanding of taxation is less than 0.05, so H0 is rejected and H1 is accepted. This implies that a person's level of understanding of taxation significantly affects their compliance with the obligation to submit annual tax returns. This suggests that the degree to which individuals comprehend their tax obligations is directly correlated with their propensity to adhere to the relevant tax obligations.

This is consistent with the findings of Septianingrum et al. (2023), Mulyati and Ismanto (2021), and Haryanti et al. (2022), who found a significant positive correlation between tax knowledge and taxpayer compliance. Taxpayers understand that the tax function is the largest source of state revenue and is used for state financing. They know how to register and obtain an NPWP, which serves as their taxpayer identification number. They also have a good understanding of their rights and obligations as individual taxpayers.

In accordance with the findings of the hypothesis tests enumerated in Table 5, the significance value (p-value) for the tax sanction variable is less than

0.05 (0.000), thereby indicating that H0 is rejected and H1 is accepted. The findings of this study lend support to the third hypothesis (H3), which posits that tax sanctions have a substantial impact on enhancing individual taxpayer compliance. It is evident that the tax sanction variable exerts a substantial influence on taxpayer compliance in submitting the annual tax return. The introduction of tax sanctions is expected to encourage taxpayers to adhere more strictly to their tax obligations, thereby enhancing the overall level of compliance in submitting annual tax returns.

These results align with those of Mulyati and Ismanto (2021), Yoga and Dewi (2022), Sudiarto and Junianto (2023) and Haryanti et al. (2022). All of these studies found that tax sanctions have a positive and significant impact on the compliance of individual taxpayers. Based on the responses to the questionnaire, it can be concluded that taxpayer compliance increases when the Directorate General of Taxes adopts a firm and clear stance against taxpayers who violate tax laws. Such sanctions are considered capable of increasing taxpayer discipline. The tax sanctions given must be balanced, meaning they must be in accordance with the type of violation. Furthermore, it is imperative that sanctions are imposed on those who violate these principles, and that these sanctions are applied with unwavering strictness.