The Influence of Service and Religiosity on Taxpayer Compliance with Tax Sanctions as a Moderating Variable in MSMEs in Singkawang City

This study aims to analyze the influence of tax services and religiosity on taxpayer compliance of MSMEs in Singkawang City, with tax sanctions as a moderating variable. Tax compliance is an essential issue for the Government, especially in increasing state revenue from the tax sector, especially from MSMEs. This study uses a quantitative approach with a survey method involving 96 respondents of MSME actors in Singkawang City registered as taxpayers. Data processing was done using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method using SmartPLS. The results of the study indicate that tax services and religiosity have a significant effect on taxpayer compliance. This shows that good quality tax services and a high religiosity can encourage taxpayer compliance. In addition, tax sanctions also have a significant effect with a value indicating that strict sanctions can increase tax compliance. However, tax sanctions cannot moderate the influence of tax services and religiosity on taxpayer compliance. This study concludes that to improve taxpayer compliance with MSMEs, tax authorities must improve the quality of services and strengthen the moral education approach through religiosity. At the same time, sanctions continue to play a role as a control, although they do not constantly enhance the relationship between service or religiosity and tax compliance.