People Innovation Excellence
 

TAX COMPLIANCE OF SMALL AND MEDIUM ENTERPRISES: EVIDENCE FROM INDONESIA

TAX COMPLIANCE OF SMALL AND MEDIUM ENTERPRISES: EVIDENCE FROM INDONESIA

Fany Inasius
Finanace Program, Accounting Department, Faculty of Economics & Communication,
Bina Nusantara University, Jakarta, Indonesia 11480

ABSTRACT

It has been argued that regulatory requirements on business, especially those on SMEs can be a constraint on their growth. Indonesian Small and Medium Enterprises (SMEs) play a significant role in the national economy. This paper measures the tax compliance rate of particular individual retailers known as individual taxpayers on SMEs with annual income ranging from IDR 600 millions up to IDR 4.8billion (around USD 400,000 with the exchange rate at the time when the research was undertaken) in Indonesia. Four tax compliance variables were examined namely the perception of tax rate, the referral group, the probability of being audited and the tax knowledge. From 319 respondents, who are individual retailers, the result shows the income tax rate is negatively correlated to tax compliance while probability of being audited, referral group, and tax knowledge are positively correlated by taxcompliance. Tax knowledge, however, has a more significant impact on individual tax compliance JEL: H20

KEYWORDS: Tax Compliance, SMEs, Individual Taxpayers, Retailers

 

 

ftp://ftp.repec.org/opt/ReDIF/RePEc/ibf/acttax/at-v7n1-2015/AT-V7N1-2015-5.pdf

 

SCOPUS  Indexing


Published at :
Leave Your Footprint

    Periksa Browser Anda

    Check Your Browser

    Situs ini tidak lagi mendukung penggunaan browser dengan teknologi tertinggal.

    Apabila Anda melihat pesan ini, berarti Anda masih menggunakan browser Internet Explorer seri 8 / 7 / 6 / ...

    Sebagai informasi, browser yang anda gunakan ini tidaklah aman dan tidak dapat menampilkan teknologi CSS terakhir yang dapat membuat sebuah situs tampil lebih baik. Bahkan Microsoft sebagai pembuatnya, telah merekomendasikan agar menggunakan browser yang lebih modern.

    Untuk tampilan yang lebih baik, gunakan salah satu browser berikut. Download dan Install, seluruhnya gratis untuk digunakan.

    We're Moving Forward.

    This Site Is No Longer Supporting Out-of Date Browser.

    If you are viewing this message, it means that you are currently using Internet Explorer 8 / 7 / 6 / below to access this site. FYI, it is unsafe and unable to render the latest CSS improvements. Even Microsoft, its creator, wants you to install more modern browser.

    Best viewed with one of these browser instead. It is totally free.

    1. Google Chrome
    2. Mozilla Firefox
    3. Opera
    4. Internet Explorer 9
    Close