Understanding Tax Morale of Micro, Small, and Medium Enterprises in Jabodetabek

DOI

10.2991/assehr.k.210531.058How to use a DOI?

Keywords

Tax Morale, Tax Compliance, MSME, SEM

Abstract

This study aims to identify the factors determining the tax morale of Micro, Small, and Medium Enterprises (MSME). The study is pertinent because MSME account for 60% of Indonesia’s GDP yet they contribute only 0.67% to tax revenue. One reason for this low level of tax revenue is low tax morale. Tax morale refers to the intrinsic motivation of taxpayers with regard to paying taxes. The population in the research is MSME in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek). Multistage sampling is used as the sampling technique. A total of 217 nonagricultural-sector MSME participated in this study. The results of the Structural Equation Modeling (SEM) analysis, which incorporated the SmartPLS program, show that sentiments toward tax, trust in the tax authority, perception of public goods, and attitude toward punishment positively affect the tax morale of MSME in Jabodetabek and will play a role in influencing the willingness of taxpayers to pay.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Benny Irawan
AU  - Khoirunurrofik Khoirunurrofik
PY  - 2021
DA  - 2021/05/31
TI  - Understanding Tax Morale of Micro, Small, and Medium Enterprises in Jabodetabek
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 449
EP  - 457
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.058
DO  - 10.2991/assehr.k.210531.058
ID  - Irawan2021
ER  -