Elly Asmara

Restaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based restaurants in local governments in Indonesia contrasts with the decrease in tax revenues. This study aims to analyze the determinants of restaurant tax compliance using e-commerce and self-assessment systems as independent variables and technology-based tax monitoring as a moderating variable. The sample consists of 68 payers of restaurant tax in the city of Semarang, Indonesia, who have used e-commerce to transact their business. The testing of the hypotheses was carried out using partial least squares-structural equation modeling (PLS-SEM). The results show that the self-assessment system has a positive significant effect on tax compliance with a path coefficient of 0.31. Technology-based tax monitoring significantly affects tax compliance with a path coefficient of 0.52. Technology-based tax monitoring acts more as the main determinant rather than as a moderating variable. The study stresses the importance of implementing technology-based restaurant tax monitoring for local governments. Local finances, primarily funded by local taxes such as the restaurant tax, are essential for bolstering regional budgets. These funds directly contribute to public services and infrastructure, making restaurant tax compliance vital for local government autonomy and development.