Factors Affecting MSME Taxpayer Compliance: Tax Sanctions As Moderation

Abstract

This study examines the factors that influence MSME taxpayer compliance in Jambi City, such as understanding of accounting, tax regulations and knowledge of taxation and tax sanctions. This study also examines how strong tax sanctions are in moderating the influence relationship between accounting understanding, tax regulations and tax knowledge on MSME taxpayer compliance. The population uses MSMEs in Jambi City with a sample of MSMEs engaged in the culinary sector with predetermined criteria. Thus, the participants of this study amounted to 74 respondents. The research questionnaire was distributed using a hand delivery system and processed using SEM - PLS Warp - PLS (7.0). The results of this research prove that understanding accounting has no effect on the compliance of MSME taxpayers in the culinary sector in Jambi City. Meanwhile, an understanding of tax regulations and tax sanctions can affect taxpayer compliance in the culinary sector of MSMEs in the city of Jambi directly or indirectly.

Keywords

• taxpayer compliance; accounting; tax regulations; tax knowledge; tax sanctions.