Back Issues 11-20

EFFECT OF MOTIVATION AND AWARENESS ON TAX COMPLIANCE AMONG SME’S: 

(CASE STUDY IN CIMAHI, INDONESIA)

Heni Nurani Hartikayanti*

Universitas Jenderal Achmad Yani

*Corresponding Author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Ifan Wicaksana Siregar

Universitas Jenderal Achmad Yani

Abstract

This study aims to evaluate motivation and awareness of compliance by Small and Medium Enterprises in Cimahi Indonesia. This research was conducted to ensure the motivation and awareness of SMEs towards fulfilling their tax obligations. The research method used is a descriptive survey to describe the situation, phenomena, attitudes, behaviors, beliefs, and opinions of taxpayers of individuals who do business. The cross-sectional design was also used to guide the focus on exploring, describing and explaining the situation of SMEs and compliance with tax laws. Through multiple regression analysis. Data were obtained using a questionnaire distributed to 100 SME entrepreneurs. Most respondents stated that they were not motivated and were still reluctant to pay their taxes regularly. Most SMEs show that the main obstacle to fulfilling their tax compliance is that the tax rates set by the government are too high while their efforts are not too stable. Based on the research findings, it can be concluded that the majority of respondents have realized that paying taxes is their obligation. This study recommends that efforts must be made by the City Government and the Tax Service Office to continue to foster SMEs with regulatory socialization and technical training in tax reporting rules in accordance with applicable laws.

Keywords: motivation, awareness, tax compliance, SME entrepreneurs

Attachments:

0970 Final.pdf

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131 kB