Skip to main content
SpringerLink
Log in

The Model of Tax Compliance Assessment in MSMEs

  • Conference paper
  • First Online:
Complex, Intelligent and Software Intensive Systems (CISIS 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 278))

Included in the following conference series:

  • 1159 Accesses

Abstract

The 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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Imaniati, Z.Z.: The effect of taxpayers’ perceptions of small and medium-sized applications in Yogyakarta. J. Nominal. 5(2), 1–13 (2016)

    Google Scholar 

  2. Anggraeni, D.: Completed Tax, MSME Up Grade (2019). https://www.pajak.go.id/artikel/pajak-tuntas-umkm-naik-kelas

  3. OECD: Glossary of tax terms (2016). http://www.oecd.org/ctp/glossaryoftaxterms.htm

  4. Inasius, F.: Factors influencing SME tax compliance: evidence from Indonesia. Int. J. Public Adm. 42(5), 367–379 (2019)

    Article  Google Scholar 

  5. Hashimzade, N., Myles, G.D., Tran-Nam, B.: Applications of behavioural economics to tax evasion. J. Econ. Surv. 27(5), 941–977 (2013)

    Google Scholar 

  6. F. D. P. Z. Z. A., Mayowan, Y.: The effect of understanding of tax payment mechanisms, perceptions of tax rates and tax sanctions on sme taxpayer compliance (Studies on Taxpayers Registered at KPP Pratama Batu). J. Perpajak. 10(1), 1–8 (2016)

    Google Scholar 

  7. Sumianto, S., Kurniawan, C.H.: The influence of accounting understanding and taxation provisions and transparency on the compliance of entrepreneurs personal taxpayers of SMEs in Yogyakarta. Modus. 27(1), 41 (2016)

    Article  Google Scholar 

  8. Wadesango, N., Mutema, A., Mhaka, C., Wadesango, V.: Tax compliance of small and medium enterprises through the self-assessment system: issues and challenges. Acad. Account. Financ. Stud. J. 22(3), 1528–2635 (2018)

    Google Scholar 

  9. Oladipupo, A.O., Obazee, U.: Tax knowledge, penalties and tax compliance in small and medium scale enterprises in Nigeria. iBusiness 08(01), 1–9 (2016). https://doi.org/10.4236/ib.2016.81001

    Article  Google Scholar 

  10. Barone, G., Mocetti, S.: Tax morale and public spending inefficiency. Int. Tax Public Financ. 18(6), 724–749 (2011)

    Article  Google Scholar 

  11. Musimenta, D., Nkundabanyanga, S.K., Muhwezi, M., Akankunda, B., Nalukenge, I.: Tax compliance of small and medium enterprises: a developing country perspective. J. Financ. Regul. Compliance. 25(2), 149–175 (2017)

    Article  Google Scholar 

  12. Kogler, C., Batrancea, L., Nichita, A., Pantya, J., Belianin, A., Kirchler, E.: Trust and power as determinants of tax compliance: testing the assumptions of the slippery slope framework in Austria, Hungary. Romania and Russia. J. Econ. Psychol. 34, 169–180 (2013)

    Article  Google Scholar 

  13. Adimasu, N.A., Daare, W.J.: Tax awareness and perception of tax payers and their voluntary tax compliance decision: evidence from individual tax payers in SNRR, Ethopia. Int. J. Sci. Res. Publ. 7(11), 686 (2017)

    Google Scholar 

  14. Gilligan, G., Richardson, G.: Perceptions of tax fairness and tax compliance in Australia and Hong Kong - a preliminary study. J. Financ. Crime. 12(4), 331–343 (2005)

    Article  Google Scholar 

  15. Ghozali, I.: Multivariate Analysis Application with IBM and SPSS Programs. Universitas Diponegoro, Semarang (2018)

    Google Scholar 

  16. Mukhlis, I., Utomo, S.H., Soesetio, Y.: The role of taxation education on taxation knowledge and its effect on tax fairness as well as tax compliance on handicraft SMEs sectors in Indonesia. Int. J. Financ. Res. 6(4), 161–169 (2015)

    Article  Google Scholar 

  17. Inasius, F.: Tax compliance of small and medium. Account. Tax. 7(1), 67–73 (2015)

    Google Scholar 

  18. Lestary, S.R., Sueb, M., Yudianto, I.: The effect of tax fairness, tax socialization and tax understanding on tax compliance: a study on micro, small and medium enterprises (MSMEs). J. Account. Audit. Bus. 4(1), 87 (2021)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Accounting, Faculty of Economics, Universitas Islam Sultan Agung, Jalan Raya Kaligawe KM 4, Semarang, Indonesia

    Devi Permatasari, Naila Najihah &  Mutoharoh

Authors
  1. Devi Permatasari
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Naila Najihah
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Mutoharoh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Devi Permatasari .

Editor information

Editors and Affiliations

  1. Department of Information and Communication Engineering, Fukuoka Institute of Technology, Fukuoka, Japan

    Leonard Barolli

  2. Department of Information Security Engineering, Soonchunhyang University, Asan, Korea (Republic of)

    Kangbin Yim

  3. Faculty of Bussiness Administration, Rissho University, Tokyo, Japan

    Tomoya Enokido

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Permatasari, D., Najihah, N., Mutoharoh (2021). The Model of Tax Compliance Assessment in MSMEs. In: Barolli, L., Yim, K., Enokido, T. (eds) Complex, Intelligent and Software Intensive Systems. CISIS 2021. Lecture Notes in Networks and Systems, vol 278. Springer, Cham. https://doi.org/10.1007/978-3-030-79725-6_52

Download citation

Publish with us

Policies and ethics

Search

Navigation