During the Covid-19 Pandemic, a Compliance Tax Was Imposed on Batik Tegalan Entrepreneurs from the Perspectives of Information, Knowledge, Accounting Systems, and Business Types

Abstract

Tax revenue have an important role for Indonesian's development. The ratio of taxpayer compliance and tax revenue in Indonesia has increased, but in some areas the ratio of taxpayer compliance, especially for MSME has decreased as at KPP Pratama Badung Utara. In an effort to maintain taxpayer compliance, mainly due to the Covid-19 pandemic, the government has implemented several policies by providing tax incentives, modernizing the tax administration system and imposing tax sanctions on businesses that are directly affected, especially for MSME. The purpose of this study is to examine the effect of tax incentives, modernization of the tax administration system and tax sanctions on MSME taxpayer compliance. For the type of data are used primary data that obtained through from distribution of questionnaires and secondary data from documentation. The sample of this research is based on purposive sampling method with total sample 99 MSME taxpayers register at the KPP Pratama Badung Utara. Statistical testing is using Partial Least Square (PLS) with SmartPLS 3.3.9. The study finds that (a)tax incentives have a positive and significant effect on MSME taxpayer compliance, (b) modernization of tax administration system has a positive and significant effect on MSME taxpayer compliance, (c) tax sanctions have a positive and significant effect on MSME taxpayer compliance.