Influence of Tax Understanding, Tax Socialization, and Financial Conditions on MSME Taxpayer Compliance in Manado City

Abstract

The global economy is still recovering in some countries, including Indonesia. Aside from being a source of state revenue, taxes are expected to provide a stimulus for national economic recovery. Taxes make a large contribution to the state, the size of tax revenue is determined by the level of tax compliance. Micro, Small and Medium Enterprises have potential in tax revenue. However, the tax contribution of MSMEs is still low. This study aims to clarify the impact of tax understanding, tax socialization, and financial status on compliance of MSME taxpayers in Manado City. This type of research is quantitative research using descriptive statistical analysis methods and multiple linear regression with a survey approach. Analyzes were performed using the IBM SPSS Statistics 22 computer application. The population in the study was MSMEs registered with Dinas Koperasi UKM in Manado City in Manado City. The research sample is 100 MSMEs that have NPWP with the sampling technique using purposive sampling. The results show that understanding of taxation, socialization of taxation, and financial conditions partially and simultaneously influenced the compliance of MSME taxpayers in Manado City.