Title:
LOW TAX RATES AND OBSTACLES ON SMES COMPLIANCE

Authors:
Aldila Dinanti, Lina Rifda Naufalin, Aldila Krisnaresanti, Ginanjar Adi Nugraha, Indonesia

Abstract:

SMEs has proven their existency as one of the pillar of the nation’s economy when global crisis happened with their high endurance. Great amount of SMEs are really potential in increasing the nation’s income on the tax field. Low rates of 0.5% that has been applied is indeed very supportive in regards to that income. But in its execution, there are still not as good as expected. There are still some obstacles faced by the SMEs so they will not or can not perform their responsibilities well. These problems were dug deeper in this research to learn about the problems faced by SMEs to fulfill their tax obligation. in-depth interview was performed to achieve the purpose of this research. This research was performed on the SMEs that has had obstacle in fulfilling their responsibilities, whether those problems are still going on or not. The result of this research shows the importance of business transaction record in the continuity of an enterprise. When a SMEs has the basic knowledge and practice on it, then this SMEs will prefer to fulfill their tax obligation. Other thing that may hinder this is their business development motivation that may hold them to fulfill their responsibilities because of the big amount of tax that need to be paid can be used to manage their business’ needs. So it seems clear that the knowledge about fiscal correction in fulfilling tax obligation is also important for SMEs so they will keep obeying their tax obligation.