Asian Journal of Economics, Business and Accounting

This study investigates hotel and restaurant taxpayer compliance in Jepara Regency Indonesia, emphasizing the mediating role of taxpayer awareness in the relationship between tax outreach and compliance. Using the census method, data were collected from 213 respondents through questionnaires and analyzed with structural equation modeling using PLS. The findings reveal that: (1) tax outreach has a significant positive effect on taxpayer awareness; (2) tax outreach has a significant positive effect on taxpayer compliance; (3) taxpayer awareness has a significant positive effect on taxpayer compliance; and (4) taxpayer awareness mediates the relationship between tax outreach and taxpayer compliance. These results confirm that outreach efforts enhance compliance both directly and indirectly by increasing taxpayers’ awareness of their obligations. The study extends the Theory of Planned Behavior and compliance theory by integrating taxpayer awareness as a mediating construct in the context of local taxation within a developing economy. Practically, the findings guide local governments to design targeted outreach—combining direct engagement and digital channels—that links tax payments to visible public benefits, builds trust, and strengthens awareness, thereby improving compliance and sustaining revenue growth.