Analysis on the effects of social norms on local property tax compliance

The goal of this study is to determine the effects of social norms toward property tax compliance, either by direct or indirect influence. The data used are primary and secondary data. The primary data are from 156 respondents of Jakarta property taxpayers obtained by questionnaire and the secondary data are from the Tax Office of Jakarta Province. Data were analyzed using Structural Equation Modeling (SEM) with LISREL 8.7 software. Social norms refer to the identification of Cialdini and Tross (1998), which consists of descriptive norms (what people actually do), injunctive norms (the moral rule of the group), subjective norms (the perception of those closest) and personal norms (the standard behavior of individuals). The results of this study indicate that the property taxpayers’ injunctive norms affect subjective norms, property taxpayers’ subjective norms affect personal norms and personal norms have a significant effect on tax compliance. The relationship between social norms in tax compliance is indirect through personal norms, while injunctive and subjective norms have no direct effect on tax compliance.