Analysis of Understanding of Tax Regulations and Awareness on Compliance with Socialization as a Moderating Variable

Understanding of tax regulations and taxpayer awareness can affect taxpayer compliance. The better the understanding of tax regulations and taxpayer awareness, the higher the taxpayer compliance. This study aims to analyze the effect of understanding of tax regulations and taxpayer awareness on taxpayer compliance with tax socialization as a moderating variable at the Lubuk Pakam Pratama Tax Service Office. A total of 100 respondents were selected as samples using purposive sampling techniques. Data analysis was carried out using multiple linear regression tests. The results of the study indicate that partially, understanding of tax regulations has a positive and significant effect on taxpayer compliance, taxpayer awareness has a positive and significant effect on taxpayer compliance. Simultaneously, understanding of tax regulations and taxpayer awareness have a positive and significant effect on taxpayer compliance. Based on the moderated regression analysis (MRA) test, tax socialization is unable to strengthen understanding of tax regulations on taxpayer compliance and tax socialization is able to strengthen taxpayer awareness on taxpayer compliance.