Indah Hapsari

This study investigates the factors influencing taxpayer compliance, using tax morale as a mediating variable. A quantitative approach was employed, utilizing primary data gathered through questionnaires. The sample consisted of 280 small and medium-sized enterprise (SME) taxpayers from Surabaya, Sidoarjo, and Mojokerto, Indonesia, who were interviewed either in person or via online surveys. Multiple linear regression and path analysis were conducted to evaluate the data. The findings reveal that perceived fairness and trust in the government significantly enhance tax morale, which, in turn, positively influences taxpayer compliance. Furthermore, tax morale was found to mediate the relationship between both perceived fairness and government trust with taxpayer compliance, demonstrating the importance of psychological factors in fostering tax adherence. However, the study found that the taxpayer environment and religiosity, when considered as control variables, did not have a significant impact on compliance. This indicates that while personal perceptions and trust are influential, external social factors and religious beliefs are less critical. These insights emphasize that when the issue of equity and trust in government prevails, compliance will increase among SME taxpayers. These findings suggest that by prioritizing taxpayer trust and fairness, policymakers can enhance budget predictability and efficiency in public resource distribution.