EFFECTIVENESS OF THE USE OF ELECTRONIC TAX INVOICES IN INCREASING THE COMPLIANCE OF TAXABLE BUSINESSMEN FOR INCOME TAX REPORTS IN INDONESIA

Abstract

Abstract: Effectiveness of the Use of Electronic Tax Invoice in Increasing Taxable Entrepreneur Compliance for Reporting Income Tax Returns (PPh) in Indonesia. The purpose of this research is to determine the effectiveness of the use of electronic tax invoices in increasing the compliance of taxable businessmen (PKP) for reporting income tax returns (PPh) in Indonesia. The objective of this study is to determine the level of compliance with the reporting of Income Tax Returns (PPh) in Indonesia before (in 2013-2015) and after (in 2016-2018)  the use of electronic tax invoices were made compulsory. The data analysis technique uses the ratio of PKP compliance level which can be calculated by comparison between the number of PKP conventional tax invoice makers and the number of electronic tax invoice makers. The analysis shows that the level of compliance before using the electronic tax invoice in 2013-2015 was 89.5% (between 80% -90%), meaning that the level of PKP compliance in applying electronic tax invoices was quite effective. While the level of achievement after using the electronic tax invoice for 2016-2018 was 86.9% (between 80% -90%), meaning that the level of PKP compliance in implementing the use of electronic tax invoices was also quite effective. So it can be concluded that the level of achievement before using the electronic tax invoice in 2013-2015 is quite effective. While the level of achievement after using an electronic tax invoice in 2016-2018 is also quite effective.

Keywords:       Effectiveness, Electronic Tax Invoice, Taxable Entrepreneur Compliance, Income Tax Return