Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)

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Developing the Concept of Post-Covid-19 SMEs Voluntary Tax Compliance Through a Social Contract Perspective: The Role of Incentive, Fairness, and Trust

Authors
Alvien Gunawan1, *, Unti Ludigdo2, Noval Adib2, Mohamad Khoiru Rusydi2
1Faculty of Economic and Business, University of Maarif Hasyim Latif, Sidoarjo, Indonesia
2Faculty of Economic and Business, University of Brawijaya, Malang, Indonesia
*Corresponding author. Email: alvien_gunawan@dosen.umaha.ac.id
Corresponding Author
Alvien Gunawan
Available Online 1 August 2023.
DOI
10.2991/978-2-38476-090-9_6How to use a DOI?
Keywords
Post-Covid-19; SMEs; Voluntary Tax Compliance; Social Contract; Incentive; Fairness; Trust
Abstract

This study uses a literature review method that aims to developing voluntary tax compliance for SMEs after Covid-19 era from the social contract’s perspective. The declining level of tax compliance during the Covid-19 pandemic is a special concern for the government. The social contract elevates three main principles, namely freedom, common needs and reciprocity. In the perspective of taxation means that the taxpayer gives up his freedom in the management of economic assets to the government for the welfare of the people. On the contrary, the government provides reciprocity in the form of services to the community and the provision of good and adequate public facilities. The social contract among the government and the taxpayer requires mutual trust. The results of this study show that the social contract between taxpayers and the government can be realized if there is an element of justice first. A form of justice for taxpayers such as providing tax incentives in the midst of the Covid-19 pandemic. The justice felt by taxpayers will foster trust in the government. Trust in the government is a good thing to encourage voluntary compliance from taxpayers.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
1 August 2023
ISBN
10.2991/978-2-38476-090-9_6
ISSN
2352-5398
DOI
10.2991/978-2-38476-090-9_6How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Alvien Gunawan
AU  - Unti Ludigdo
AU  - Noval Adib
AU  - Mohamad Khoiru Rusydi
PY  - 2023
DA  - 2023/08/01
TI  - Developing the Concept of Post-Covid-19 SMEs Voluntary Tax Compliance Through a Social Contract Perspective: The Role of Incentive, Fairness, and Trust
BT  - Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
PB  - Atlantis Press
SP  - 52
EP  - 62
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-090-9_6
DO  - 10.2991/978-2-38476-090-9_6
ID  - Gunawan2023
ER  -