THE EFFECT OF TAX KNOWLEDGE, TAX RATES, TAX PAYMENT MECHANISMS AND TAX SANCTIONS ON TAXPAYER COMPLIANCE OF MSMES IN SAMBI DISTRICT

Abstract

Currently, Micro, Small, and Medium Enterprises (MSMEs) are a major concern for the government. Despite their small scale and independent management by the community, MSMEs play a significant role in supporting the national economic cycle. This study aims to analyze the influence of tax knowledge, tax rates, tax payment systems, and tax sanctions on the level of MSME taxpayer compliance. This study uses a quantitative approach with multiple linear regression analysis. The population studied were MSME taxpayers in Boyolali Regency, Central Java. The research sample was determined using purposive sampling techniques and the Slovin formula, resulting in 100 MSMEs as respondents. The results show that tax knowledge has a positive and significant effect on tax compliance. Tax rates show a significant but negative effect on compliance. Tax payment mechanisms and tax sanctions both have a positive and significant effect on the level of taxpayer compliance.