Financial Reporting Obligation and Tax Compliance among Professionals Taxpayers: Evidence from Indonesia

Kamadie Sumanda Syafis (Universitas Lampung)
Niken Kusumawardani (Universitas Lampung)
Diajeng Fitri Wulan (Universitas Lampung)

Golden Ratio of Taxation Studies
Vol. 6 No. 2 (2026): June - November

Tax compliance among professional taxpayers remains a significant challenge in self-assessment taxation systems due to information asymmetry and limited financial transparency. This study examines the relationship between financial reporting obligations and tax compliance among professional taxpayers in Indonesia, with financial transparency as a mediating variable and tax literacy as a moderating variable. A quantitative explanatory research design with a cross-sectional approach was employed using survey data collected from 214 professional taxpayers selected through purposive sampling. The proposed research model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate a significant positive relationship between financial reporting obligations and tax compliance, as well as between financial reporting obligations and financial transparency. Financial transparency is also positively associated with tax compliance and partially mediates the relationship between financial reporting obligations and tax compliance. Furthermore, tax literacy significantly moderates the positive relationship between financial reporting obligations and tax compliance, suggesting that taxpayers with higher levels of tax knowledge may be better positioned to translate systematic bookkeeping practices into compliant tax behavior. The study extends the Theory of Planned Behavior by integrating Agency Theory and Information Asymmetry Theory into a comprehensive behavioral framework for understanding professional taxpayers' compliance. The findings provide practical implications for tax authorities by emphasizing the importance of strengthening bookkeeping requirements, promoting financial transparency, and expanding tax literacy programs alongside digital tax administration initiatives to support voluntary tax compliance and contribute to a more transparent and sustainable taxation system. As the study employs a cross-sectional design, the findings should be interpreted as associations and predictive relationships rather than evidence of causal relationships.