International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (647-654), Month: October 2019 - March 2020, Available at: www.researchpublish.com
Factors that Affect MSMEs Taxpayer Compliance Ni Kadek Ria Fitriani1, Gayatri2, I Gusti Ayu Made Asri Dwija Putri3 1,2,3 1,2,3
Udayana University
Faculty of Economics and Business, Bali, Indonesia
Abstract: This research was conducted to obtain empirical evidence of the examination of socialization, understanding and perception of MSMEs taxpayer compliance. This research was conducted in East Denpasar Sub District and South Denpasar Sub District which is the working area of East Denpasar Tax Office because the contribution of Annual Tax Return in 2018 decreased dramatically compared to previous years. The research respondents decided that 98 MSMEs taxpayers were determined by the probability sampling method, namely simple random sampling. Data collection was carried out using a questionnaire with multiple linear regression analysis techniques. Based on analysis test results show that socialization, understanding and perception have positive affect on MSMEs taxpayer compliance in East Denpasar Sub District and South Denpasar Sub District. Keywords: MSMEs taxpayer compliance, socialization, understanding, perception, Government Regulation Number 23 of 2018.
I. INTRODUCTION The government is trying to increase tax revenue by carrying out tax reforms aimed at simplifying the taxation system that includes tax rates, taxable income and tax collection systems (Ramadiansyah dkk., 2014).The current government continues to look for various sectors that have the potential to increase tax revenue. One of the sectors that is the center of government attention is the MSMEs. MSMEs are able to create jobs, assist in international trade, provide services and support for large companies and help in economic diversification (Aladejebi, 2018). MSMEs constitute a large and dominant number of businesses, compliance of MSME with tax laws and regulations will contribute to increase government revenue (Wahabu, 2017). Based on data from the Ministry of Finance of the Republic of Indonesia, in 2014 UMKM tax receipts were only IDR 2 trillion or less than 1% compared to MSMEs contribution to GDP of IDR 3,000 trillion. This became the basis for President Joko Widodo to implement a policy by reducing the Final Income Tax rates for Micro, Small and Medium Enterprises (MSMEs) from 1% to 0.5%. These provisions are regulated in Government Regulation Number 23 of 2018 which is effective as of July 1, 2018 in lieu of Government Regulation Number 46 of 2013 which previously set a final tax rate 1% for MSMEs. The taxation system governing MSMEs must be simplified and contain the principle of fairness to encourage taxpayer compliance with tax regulations (Ameyaw et al., 2016). Tax compliance is defined as the ability and willingness of taxpayers to comply with tax laws that is to state the correct amount of income each year and pay the right amount of tax (Wadesango et al., 2018). Non-compliance behaviour with taxation obligations is caused by a lack of technical knowledge of taxation and considers the taxation system to be very complex and tends to complicate the community (Saad, 2014). One of the factors affecting taxpayer compliance is socialization. Research conducted by Angelia dan Fajriana (2018) concluded that the socialization of Government Regulation Number 23 of 2018 has a positive effect on the compliance of MSMEs taxpayers. The socialization will increase the taxpayer's knowledge and insight about the procedures for calculation and government policies so as to increase the taxpayer's knowledge. Another factor is the understanding of taxation which is everything related to taxation that is understood properly and correctly by taxpayers and can translate and / or apply what has been understood (Imaniati, 2016). Research conducted by Cahyani (2019) found that understanding taxation had a positive effect on MSME taxpayer compliance. When taxpayers understand the rules, taxpayers will be easier to carry out their tax
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