Social Marketing as a Means for Socializing Individual Income Tax for MSMEs in Malang City

Abstract

Improving the formation of tax administration capacity is indispensable since it may lead to the potentially unstable tax ratio in Indonesia in the next few years. The delivery of information to the taxpayer becomes essential in revamping the tax administration. In the area studied in Malang city, information asymmetry (imbalance) occurs for taxpayers of Individual Income Tax on MSMEs. There are four subdistricts and four types of businesses of 226 businesses but the tax compliance in the Malang city merely reaches 88%. Thus, it is necessary to identify the problems of socialization and the use of media that has been carried out and provide suggestions that can be utilized by the Regional Office of DJP East Java III using social media approach through segmentation and socialization for target participants of individual income tax MSMEs in Malang City based on Government Regulation No. 46. Research findings revealed the importance of using more advanced technology in tax dissemination. In addition, there is also a need for synergy between the community and government in order to achieve the success of technological media based tax socialization for creating more effective form of communication by considering tax sector as one of the main sectors supporting national economy.