Abstract
This study aims to determine the effect of tax knowledge on taxpayer compliance in East Medan Tax Office, to know the effect of tax sanction on taxpayer compliance in East Medan Tax Office, to know the effect of tax knowledge and tax sanction on taxpayer compliance in East Medan Tax Office. The research methodology used is quantitative descriptive method. The type of data used in this study is quantitative data. The data source is primary data were obtained from results of distributing questionaires to individual taxpayer as annual tax return in East Medan Tax Office. The result shows that tax knowledge and tax sanction partially had a positive effect on taxpayer compliance. Tax knowledge and tax sanction simultaneously had a positive effect on taxpayer compliance. Taxpayer compliance can be explained by tax knowledge and tax sanction and also can be explained by other variables which was not examined in this research, such as tax understanding, tax awareness, and tax rates.
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