The Impact of the Implementation of Government Regulation Number 55 of 2022 on MSMEs Taxpayers at KPP Pratama Muara Bungo

Abstract

This study aims to analyze the impact of the implementation of Government Regulation (PP) Number 55 of 2022 on taxpayer compliance of Micro, Small and Medium Enterprises (MSMEs) at KPP Pratama Muara Bungo. The study uses a qualitative descriptive method and panel data regression analysis with a sample of 406 taxpayers who actively pay taxes in the 2021–2023 period. The results of the study indicate that the implementation of PP Number 55 of 2022 has an impact on reducing the amount of tax payments, the number of taxpayers who make payments, and the number of taxpayers who are considered non-compliant. Simultaneously, the implementation of this PP and gross circulation have a significant effect on taxpayer compliance. However, the variable PP Number 55 of 2022 partially does not significantly affect compliance, while the variable gross circulation has a considerable positive impact. From these findings, it is recommended that the government increase the socialization of tax policies to MSMEs and implement digitalization of the tax system to facilitate the fulfillment of tax obligations by MSME taxpayers. Digitalization based on the Technology Acceptance Model (TAM) is believed to be able to increase tax efficiency, effectiveness, and compliance.