The Psychology of Compliance: A Systematic Review of Tax Morale and Sharia Principles in Modern Regulatory Affairs

Abstract

Tax compliance is traditionally viewed through the lens of deterrence and economic rationality; however, modern regulatory affairs increasingly recognize the role of "tax morale"—the intrinsic motivation to pay taxes. This research provides a systematic review of the psychological drivers of compliance, specifically analyzing the intersection of behavioral tax morale and Sharia principles. Utilizing a Narrative Literature Review (NLR) methodology focused on scholarly contributions from 2021-2025, the study investigates how Islamic values such as Amanah (trustworthiness), Adalah (justice), and the concept of Zakat (almsgiving) influence the psychological contract between the state and the taxpayer. The findings suggest that when tax systems are perceived as fair and aligned with Sharia-based social justice, compliance rates increase significantly due to religious obligation rather than fear of punishment. This review highlights that a "Synergy of Values" approach—integrating secular regulatory efficiency with religious moral frameworks—is essential for enhancing compliance in dual-system economies. The study concludes that understanding the psychology of faith-based compliance offers a robust alternative to coercive regulatory strategies. This research provides strategic insights for policymakers to design more inclusive and psychologically resonant tax regulations in a globalized era.