Tax Compliance in Indonesian MSMEs: Key Factors Explored
Michael Michael,
William Widjaja
Abstract:This study investigates the factors that impact tax compliance in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, focusing on tax knowledge, tax sanctions, tax corruption, and information technology utilization. A survey of 200 MSMEs in Jakarta and SEM-PLS analysis found that tax knowledge does not significantly affect tax compliance. Tax sanctions proved to be a significant motivator for tax compliance, while tax corruption negatively eroded trust in the tax system. In addition, it was found that i… Show more
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