ANALYSIS OF TAX COMPLIANCE LEVELS OF MSME TAXPAYERS IN PALANGKARAYA CITY 2022-2023

Abstract

This research analyzes the level of tax compliance of MSMEs in Palangkaraya City in 2022-2023. MSME tax compliance is influenced by awareness of paying taxes, understanding of taxation, and fines. This research analyzes MSME tax compliance in Palangkaraya City using a descriptive quantitative approach. A sample of 100 MSMEs was selected using accidental sampling based on the Slovin formula (5% tolerance). Multiple linear regression analysis shows that tax awareness, understanding of taxation, and fines have a significant effect on tax compliance. The research results show that these three variables have a significant contribution to tax compliance of 72.2%, with a strong relationship (correlation coefficient 0.784). Tax awareness and understanding factors have the greatest influence, while fines have a smaller contribution. However, 27.8% of other factors, such as access to technology and administrative perceptions, also influence tax compliance. This research recommends increasing tax education, simplifying administrative systems, and utilizing digital technology to support increasing MSME tax compliance.