The Influence of Tax Knowledge, Tax Incentives, Modernization of The Tax Administration System, Taxpayer Awareness, and Tax Sanctions on MSME Taxpayer Compliance

Abstrak

This study investigates the extent to which tax knowledge, tax incentives, modernization of the tax administration system, taxpayer awareness, and tax sanctions affect taxpayer compliance in Micro, Small, and Medium Enterprises (MSMEs) in Klewer Market, Surakarta. The research method uses a quantitative approach by surveying 97 MSMEs. The data obtained were analyzed using multiple linear regression using SPSS. The results of the study show that tax knowledge and tax sanctions have a significant effect on taxpayer compliance, while tax incentives, modernization of the tax administration system, and taxpayer awareness do not have a significant effect. These findings confirm that the cognitive aspect in the form of tax understanding and external factors in the form of the application of sanctions, are more decisive in increasing tax compliance than other factors. Therefore, increasing tax literacy and consistent enforcement of sanctions are the main strategies to encourage MSME compliance.