Determination of Taxpayer Compliance In Micro Small and Medium Enterprise (MSME) Center Batik

Abstract

Tax is the core element in supporting state revenue. Therefore, taxpayer compliance in taxation greatly determines the State Revenue and Expenditure Budget implementation. Many factors affect tax compliance. This research will discuss the factors of awareness and knowledge of taxation on taxpayer compliance. In addition to this research, we likewise want to know whether information technology can mediate the relationship between tax awareness and tax knowledge of taxpayer compliance. This research is a case study for all taxpayers who do batik business in the Kampung Batik Giriloyo area, Imogiri District, Yogyakarta. The total sample in this research was 91 taxpayers. The data used in this study is primary data by distributing questionnaires and direct interviews with respondents. This research used data analysis with Partial Least Square (PLS). The results showed that tax awareness and information technology affected taxpayer compliance. Tax awareness and tax knowledge do not affect information technology. Tax knowledge does not affect tax compliance. Furthermore, information technology can not mediate the relationship between tax awareness and tax knowledge with tax compliance. The implications of this research for the government are to make policies that are more supportive of MSME actors, not burdensome in paying and reporting taxes, especially in areas that are difficult to signal, and more massive socialization of tax technology so that people are aware.