TAXPAYER COMPLIANCE: THE ROLE OF TAX RATE REDUCTION POLICIES AND SERVICE QUALITY IN ENHANCING TAX AWARENESS (A CASE STUDY OF ACTIVE TAXPAYERS REGISTERED AT KPP PRATAMA SEMARANG BARAT)

This study aims to examine the impact of tax rate reduction policies, service quality, and tax awareness on taxpayer compliance, using a case study of active individual taxpayers registered at KPP Pratama West Semarang. The study population consisted of 397 MSMEs in the West Semarang KPP area in 2024. Using the Slovin formula for sampling, a total of 199 respondents were selected. Primary data was collected through questionnaires. The data were analyzed using multiple linear regression analysis. The findings indicate that tax rate reduction policies significantly and positively influence taxpayer compliance. Similarly, service quality also has a significant and positive effect on taxpayer compliance. Furthermore, both tax rate reduction policies and service quality were found to positively and significantly influence tax awareness. In turn, tax awareness itself significantly and positively affects taxpayer compliance. Mediation analysis reveals that tax awareness mediates the relationship between tax rate reduction policies and taxpayer compliance, as well as between service quality and taxpayer compliance. Keywords: Tax Rate Reduction Policy, Service Quality, Tax Awareness, Taxpayer Compliance