The Model of Tax Compliance Assessment in MSMEs

Abstract

AbstractThe MSME sector is one of Indonesia’s economic drivers because of its large number and growth. It is also the sector considered by the Government as a supplier of taxes. It is expected that MSME actors have a high level of tax compliance. Tax rates perception, tax knowledge, government expenditure perception, and tax fairness perception are some of the factors that can influence the level of tax compliance of MSME actors. Therefore, this study aims to determine the level of tax compliance in the MSME sector in Semarang, measured through the perception of tax rates, tax knowledge, government expenditure perception, and tax fairness perception. This study's population and sample comprised MSME actors who already had a tax identification number (NPWP) in Semarang. The data were collected by questionnaire and analyzed using multiple linear regressions. This study’s results indicated a positive effect between the tax rates perception and tax knowledge on tax compliance in the MSME sector of Semarang. Furthermore, government expenditure perception and tax fairness perception did not affect taxpayer compliance in the MSME sector.