Tax Service Quality and Digital Infrastructure as Determinants of Tax Compliance in Jordan: Evidence from Non-Listed Companies

  • Received October 01, 2025; Accepted December 29, 2025; Published December 31, 2025
  • Author(s): Ahmad Ibrahim Mansi Al-Omari, Suhaila Abdul Hamid, Fuadah Binti Johari
  • Doi: https://doi.org/10.70568/IJDAFS.2.2.4

Abstract:

Tax compliance remains one of the most pressing challenges confronting revenue authorities in developing economies. This study investigates two specific determinants of tax compliance among employees of non-listed companies in Irbid Governorate, Jordan: (1) tax service quality, and (2) digital infrastructure. Drawing on Service Quality Theory (SERVQUAL), the Technology-Organisation-Environment (TOE) framework, and the Theory of Planned Behaviour (TPB), a descriptive-analytical design was employed. A structured questionnaire based on a five-point Likert scale was administered to a simple random sample of 385 respondents; 392 usable responses were collected. Partial Least Squares Structural Equation Modelling (PLS-SEM) via Smart-PLS-4 was used for hypothesis testing. Results reveal that tax service quality exerts a significant positive direct effect on tax compliance (β = 0.242, T = 5.231, p < 0.001), while digital infrastructure similarly demonstrates a significant positive effect (β = 0.131, T = 2.691, p = 0.007). The coefficient of determination for tax compliance is R² = 0.329, and the model exhibits moderate predictive relevance (Q² = 0.217). Both effect sizes are in the small-to-medium range (f² = 0.116 for TSQ; f² = 0.053 for DI). The findings underscore that improving electronic service reliability, accessibility, and responsiveness (alongside investing in robust digital infrastructure) are complementary strategies that meaningfully raise voluntary compliance. Practical recommendations target Jordanian tax policymakers, the Income and Sales Tax Department, and researchers seeking to advance digital governance in emerging-market contexts.