The income tax compliance of social media influencers during COVID-19 pandemic: An exploratory study

Yeney Widya Prihatiningtias, Gracyella Natalie Putri Karo Karo

Abstract


Social media platforms have been an important source for the dissemination of information especially during the social restrictions (work from home) mandate. As a result, most companies now rely more on social media influencers to deliver their brand values. However, many of these influencers do not report and pay their income tax from their social media paid activities. This study is the first to understand the reasons behind their tendency behavior to compliance and or incompliance income tax during COVID-19 pandemic in Indonesia. A qualitative method with in-depth interviews, observation, and documentation was uses as the method of study. A total of thirteen Indonesian millennial (generation Y) influencers with a minimum number of 10,000 followers and taxable income from social media were involved in the study to share their views about their tax compliances behavior. Our findings revealed that there are indices that are affect tax incompliance behavior among millennial social media influencers such as the sufficiency of tax knowledge, unclear tax imposition and categorization mechanism, the level of trust, nationalism, and ineffecient administrative procedures. These finding also implies that there is an urge to educate influencers with regards to tax compliance by using a more suitable content and media to maximize the potential tax revenue from this booming profession.


Keywords


COVID-19; Tax Compliance; Social Media; Influencers; Millennial



DOI: http://dx.doi.org/10.31106/jema.v18i2.12789

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JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen is licensed under a Creative Commons Attribution 4.0 International License