The Transaction Cost of Tax Compliance on Institutional Change of Tax Regulation: Some Evidence from Indonesia

Tax regulations change as a part of institutional change in tax system is designed to increase tax compliance of taxpayers. The changing of tax regulation makes some new cost of implementation of new tax system. In further, it would increase transaction cost in tax compliance. The aim of this research was to identify the transaction cost of the changing of tax system in Indonesia. This study will explore qualitatively psychological cost that must be paid by tax payers on the new tax system. The research result will be important in evaluation of implementation new regulation in Indonesia and integrate psychological cost in institutional change.