The Influence of Tax Understanding, E-Form Implementation and Tax Sanctions on Tax Payer Compliance

Micro, Small and Medium Enterprises (MSMEs) have an important role in improving the Indonesian economy. As taxpayers, MSMEs can make a significant contribution to economic growth and development, and help reduce social inequality. The number of MSME taxpayers in Indonesia is very high compared to other corporate taxpayers. Until now, the obstacle that still often occurs and is faced by MSMEs is the problem of tax compliance. Many MSMEs do not understand tax obligations, and do not understand sanctions regarding taxation and how to report via e-form. This study was conducted using primary data obtained through survey and questionnaire techniques using the Hair formula method, resulting in a sample of 100 respondents to be tested. The results of this study indicate that understanding taxation and the application of e- forms do not affect taxpayer compliance in MSMEs, but tax sanctions have a positive and significant effect on taxpayer compliance in MSMEs in Karang Tengah District. The implications of the results of this study are the need to improve understanding of taxation, the implementation of effective e-forms, and the implementation of stricter tax sanctions to improve taxpayer compliance in MSMEs.