The Level of Voluntary Compliance of Income Tax Payments in Micro Small and Medium Enterprices (MSMEs) in Surakarta City, Central Java
The large number of MSMEs in Indonesia has not yet been comparable with tax revenues from MSMEs. Medium and large businesses are still the biggest tax contributors. Compliance of taxpayers arises by several factors that can influence it, including understanding tax regulations, tax rates, sanctions and fairness in determining the subject and object of the tax. This study further aims to explore the extent of MSME compliance in meeting income tax obligations and what factors affect tax compliance. This research was conducted as a case study at MSMEs in Surakarta City, Central Java, which has unique community characteristics. The results showed that the level of compliance of Surakarta City's MSMEs to fulfill the obligation to pay income tax was still low. Factors that influence compliance of Surakarta MSMEs to pay income tax is largely due to the fact that Surakarta City MSMEs do not understand the government provisions regarding income tax obligations, MSME financial capacities are still small, and they do not feel the benefits of tax payments to support the progress of their businesses.
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