Analysis of Taxation Knowledge and Taxpayer Compliance of Micro Small and Medium Enterprises in Setu Village East Jakarta

Abstract

Indonesia's tax ratio is at a low level, even the lowest among other ASEAN countries. Micro, Small and Medium Enterprises (MSMEs) is one sector that has not been fully utilized but has the potential to increase the tax ratio in Indonesia due to the large number of MSMEs that have been operating. The objectives of this research are (1) to analyze the tax knowledge of Micro, Small and Medium Enterprises (MSMEs) in Setu Village, East Jakarta related to MSME Final Income Tax. (2) to analyze the compliance of taxpayers of Micro, Small and Medium Enterprises (MSMEs) of Setu Village, East Jakarta related to MSME Final Income Tax. This research uses a qualitative approach. Data collection was collected by distributing questionnaires to MSMEs in Setu Village, East Jakarta, interviewing extension workers at the East Jakarta Regional Office of the Directorate General of Taxes and submitting data to the East Jakarta Regional Office of the Directorate General of Taxes. The results showed that the tax knowledge of MSME players in Setu Village, East Jakarta is not optimal yet and the compliance of taxpayers of MSME players in Setu Village, East Jakarta is still low. Several strategies have been carried out by the Directorate General of Taxes to increase the tax compliance of MSME enterprises.