Factors That Influence MSME Taxpayers' Willingness to Pay Tax After the Implementation of the Government Rules Number 23 of 2018

Ratih Kumala Ratih Kumala

doi:10.52728/ijtc.v1i1.40

Abstract

Tax extensification and intensification are one of the government's way of improving tax revenue. Therefore, revenue officers are required to be active, as well as the taxpayers' awareness and willingness. The deficiency of willingness to pay taxes is inseparable from the lack of knowledge, understanding, service, and financial condition of taxpayers and is one of the factors that hinder taxpayer awareness in carrying out their tax obligations. This study aims to analyze the effect of tax awareness, knowledge and understanding of taxation rules, service quality, and financial conditions on the taxpayer readiness of individual income taxpayers. The population used in this study are the taxpayers of BOLU Online Business Community SMEs. The sample used was 100 respondents. The result of this study indicates that the awareness of paying taxes and the quality of service do not significantly influence the willingness to pay taxes. In contrast, knowledge and understanding of tax regulations and financial conditions have a positive influence on taxpayers' willingness to pay.

Highlights

Tax is the central source of internal revenue
The coefficient of determination R2 is obtained by 0.572 or (57.2%). This shows that the independent variables can explain the effect of the dependent variables by 57.2% and the remaining 42.8% is influenced by other variables not included in this study
This means that if taxation knowledge is increasingly known among taxpayers, the willingness to pay taxes would increase

Summary

INTRODUCTION

Tax is the central source of internal revenue. Without taxation, the country is unable to develop well and smoothly. Factors That Influence MSME Taxpayers' Willingness to Pay Tax After the Implementation of the Government Rules Number 23 of 2018 Kumala ratio experienced a significant improvement in just a year (https://www.kemenkeu.go.id). To overcome these problems, the government through the Directorate General of Taxes since July 2013 issued Government Regulation (GR) No 46 of 2013 concerning tax regime from on business income of individual with a certain gross turnover was amended to Government Regulation (GR) No 23 of 2018 which has been in effect since July 2018. Factors That Influence MSME Taxpayers' Willingness to Pay Tax After the Implementation of the Government Rules Number 23 of 2018 Kumala H4: Service Quality affects Willingness to Pay Taxes.

AND DISCUSSION

Findings

CONCLUSION