Millennial Voluntary Tax Compliance in Indonesia: Evidence From the Theory of Planned Behavior

ABSTRACT

Indonesia's low tax ratio underscores the need to understand what drives tax compliance, particularly among millennials—a key yet underperforming taxpayer segment. This study applies the Theory of Planned Behavior (TPB), extended by six behavioral and contextual factors: tax morale, social media, peer influence, trust in tax authorities, simplicity of the tax process, and tax knowledge. Drawing on survey data from 438 millennial taxpayers across Indonesia, we find that all six factors significantly shape voluntary tax compliance intentions. Social and digital influences emerge as the strongest drivers. The study also considers financial self‐control as a novel factor in millennials' broader financial behaviors, though its relevance to tax decisions remains limited. Our findings emphasize the role of social context in shaping tax attitudes and offer actionable insights for engaging younger taxpayers through relatable, digital‐first strategies. This research expands the TPB framework and informs future tax policy design targeting the millennial demographic.