The Improvement Strategy of Tax Compliance from MSME Sector in Indonesia

DOI

10.2991/aebmr.k.200127.034How to use a DOI?

Keywords

tax ratio, tax compliance, taxpayer

Abstract

According to the Organization for Economic Co-operation and Development (OECD), the Indonesia Tax ratio in 2017 was the lowest compared to other countries in Asia-Pacific. Meanwhile, the tax ratio in 2018 was 11.6% lower than the middle-income country for 17.7%. This indicates that the level of tax compliance in Indonesia is still low and needs improvement. One of the tax compliance sectors is MSME taxpayers that hold a portion up to 65 % from business actors, but from the number of active taxpayers, it only reached 1.8 million MSMEs. This research aims to analyze the improvement strategy of tax compliance from the taxpayer as MSMEs actors in Semarang, Indonesia. The results showed the awareness of paying tax, the knowledge, and understanding of tax regulation and the effectiveness of the taxation system have a significant positive influence on tax compliance.

Copyright

© 2020, 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  - P. Wijayanti
AU  - N. Saraswati
AU  - I. Kartika
AU  - Mutoharoh
PY  - 2020
DA  - 2020/01/31
TI  - The Improvement Strategy of Tax Compliance from MSME Sector in Indonesia
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 167
EP  - 171
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.034
DO  - 10.2991/aebmr.k.200127.034
ID  - Wijayanti2020
ER  -