Title:
DETERMINANTS OF TAXPAYER NON-COMPLIANCE OF MSMES IN INDONESIA

Authors:
Sigit Handoyo and Umi Mahfiyah, Indonesia

Abstract:

The problem of non-compliance with taxes is a big issue that is often discussed in relation to state or regional income. In this study is analyzed the factors that can affect the non-compliance of MSMEs taxpayers in Tegal Regency. There were 100 respondents and the research was analyzed using multiple regression analysis. The results of this study proved that the behavioral attitude variables and subjective norms have a positive effect on tax non-compliance. Perceived behavioral control has no effect on tax non-compliance. While understanding and knowledge of taxation and tax sanctions have a negative effect on tax non-compliance. The implication of this research suggests that tax authorities to provide a persuasive approach so that taxpayers want to comply with applicable tax regulations since taxpayers' non-compliance is basically a belief that is strongly influenced by the environment or community the taxpayers live in.