THE EFFECT OF TAX INCENTIVES, TAX KNOWLEDGE, TAX SOCIALIZATION, ACCOUNTING UNDERSTANDING, AND INCOME LEVEL ON MSME TAXPAYER COMPLIANCE

Abstract

The existence of Micro, Small and Medium Enterprises (MSME) is one of the most important parts of the Indonesian economy, especially income taxes from businesses received. The essence of the existence of taxes as a solution to the limitations of development funds from a government that has the main goal of improving the welfare of the community. This study aims to analyze how tax incentives, tax knowledge, tax socialization, accounting understanding, and income levels are in fulfilling their tax obligations. This study uses quantitative data with primary data sources obtained through an online questionnaire in the form of Google Form. The sample in this study used a purposive sampling method with as many as 50 MSME taxpayers located throughout the Special Region of Yogyakarta. The data processing process used SPSS 25. The tests carried out in this study consisted of descriptive statistical analysis, data quality test, classical assumption test, multiple regression analysis, coefficient of determination test, F test, and t-test. The results of this study indicate that tax incentives, accounting understanding, and income level have a positive effect on MSME taxpayers' tax compliance. Meanwhile, tax knowledge and tax socialization has a negative effect on MSME taxpayers' tax compliance)