ANALYSIS OF THE IMPLEMENTATION OF HARMONIZATION LAW OF TAX REGULATION 2021 FOR MSME ACTIVITIES IN INDONESIA

This study aims to examine the impact of the harmonization of Tax Regulations Law 2021 on micro, small and medium enterprises “(MSMEs) in Batang Regency, Central Java Province, Indonesia. This research uses a descriptive qualitative method involving MSME actors as respondents. The results show that most MSME players, regardless of whether they have a Taxpayer Identification Number or understand their tax obligations, still consider Government Regulation No. 23/2018 as burdensome. The new provisions introduced in the 2021 HPP Law, including the limitation of the tax imposition base, are considered fairer and more rational. However, there are still many MSME actors who are unaware of these regulatory changes due to limited tax knowledge, the demands of managing a business, and uneven socialization from tax offices and related institutions. Therefore, a more personalized and proactive approach is needed from the tax authorities and related agencies to provide education and assistance to MSME actors.