Analysis of Factors Affecting MSME Taxpayer Compliance

ABSTRACT : The number of Micro, Small and Medium Enterprises (MSMEs) is not balanced with thecompliance of the MSME taxpayers in paying their taxes, which is reflected in the level of compliance of theSME Individual Taxpayers at KPP Pratama Denpasar Barat, which is still below the standards of TheOrganization for Economic Co-operation and Development (OECD) that is, 85 percent. This study aims todetermine the effect of tax knowledge, tax socialization, tax sanctions and trust in tax officials on MSMEtaxpayer compliance. This research was conducted at KPP Pratama Denpasar Barat with a total sample size of100 MSMEs individual taxpayers with purposive sampling method. Data collection was carried out throughdirect and online questionnaires. The analysis technique used is Multiple Linear Regression Analysis. Based onthe results of the analysis, it was found that knowledge of taxation, tax socialization, tax sanctions and trust intax officials had a positive effect on MSME taxpayer compliance. This shows that with adequate knowledge oftaxation, regular tax dissemination, imposition of firm and fair sanctions and fully managed tax funds for thewelfare of the community, the higher the compliance level of the MSME taxpayers.

KEYWORDS : Knowledge, Socialization, Sanctions, Trust, Compliance