Abstract: Taxes are one of the main sources of state revenue used to support regional development financing. If tax revenue continues to increase, the development process can run smoothly. One sector that has the potential to increase the level of tax revenue is the Micro, Small and Medium Enterprises (MSMEs) sector. In increasing MSMEs tax revenue there are several factors that can affect the level of compliance of MSMEs taxpayers, namely tax rates, tax understanding, tax socialization, and tax sanctions. This study aims to obtain empirical evidence of the effect of tax rates, tax understanding, tax socialization, and tax sanctions on MSMEs taxpayer compliance. This research was conducted at MSMEs in Badung Regency. Determination of samples using Incidental Sampling technique and obtained 97 samples. Data were analyzed using multiple linear regression analysis. Based on the results of this study, it shows that tax rates, tax understanding, tax socialization, and tax sanctions have a positive effect on MSMEs taxpayer compliance. This shows that the better the tax rate, tax understanding, tax socialization, and tax sanctions, the better the taxpayer compliance in Badung Regency.
Keywords: tax rates, tax understanding, tax socialization, tax sanctions, taxpayer compliance.
Title: The Effect of Tax Rates, Tax Understanding, Tax Socialization and Tax Sanctions on Taxpayer Compliance (Empirical Study of MSMEs in Badung Regency)
Author: I Gde Arya Utama Wicaksana, I Made Sukartha
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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