Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia
-
Received July 21, 2023;Accepted September 6, 2023;Published September 15, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0003-1630-4546Link to ORCID Index: https://orcid.org/0009-0001-2172-4652Link to ORCID Index: https://orcid.org/0000-0002-3465-5932
-
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.47
-
Article InfoVolume 21 2023, Issue #3, pp. 601-613
- TO CITE АНОТАЦІЯ
-
Cited by1 articlesJournal title: Problems and Perspectives in ManagementArticle title: Challenges and opportunities in the development of micro, small, and medium-sized enterprises (MSMEs) in Central and West AsiaDOI: 10.21511/ppm.22(2).2024.41Volume: 22 / Issue: 2 / First page: 527 / Year: 2024Contributors: Leyla Huseynova
- 486 Views
-
374 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Taxes are the most significant contributor to the Indonesian budget; therefore, increasing taxpayer compliance is crucial for achieving tax revenue realization. This study aims to investigate the role of tax incentives and motivational postures in increasing taxpayer compliance. The analysis was conducted in Pekanbaru, Riau, Indonesia, and the sample consisted of MSME taxpayers registered at the Pekanbaru Tax Service Office. Purposive sampling was utilized to collect data, and of the 384 returned questionnaires, 254 were used for statistical analysis. Multiple regression analysis was utilized to examine the impact of tax incentives on taxpayer compliance, and moderated regression analysis was applied to test the moderating role of motivational postures. The findings showed that the p-values of the first and second hypotheses were 0.00 and 0.001 (0.05, with a positive β value), and the third hypothesis had 0.001 (< 0.05, with a negative β value). This result indicates that the first, second, and third hypotheses are accepted, which means that the more taxpayers feel that tax incentives are beneficial, the greater their compliance with their tax responsibilities. Additionally, tax incentives significantly raise taxpayer compliance when they have a positive motivational posture and decrease it if they have a negative one. The implications of this study influence tax authorities to incentivize taxpayers to increase compliance. Knowledge of the taxpayer’s motivational postures will make it easier for tax authorities to manage taxpayer behavior to increase taxpayer compliance.
- Keywords
-
JEL Classification (Paper profile tab)H71, M48
-
References44
-
Tables7
-
Figures2
-
- Figure 1. Empirical model
- Figure 2. Scatter plot
-
- Table 1. Final sample data
- Table 2. Indication of motivational postures
- Table 3. Validity and reliability
- Table 4. Descriptive statistics
- Table 5. Normality test result
- Table 6. Tolerance and VIF value
- Table 7. Hypothesis testing result
-
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. New York: Prentice-Hall.
- Alm, J. (2019). What motivates tax compliance? Journal of Economic Surveys, 33(2), 353-388.
- Alm, J., Kirchler, E., & Muehlbacher, S. (2012). Combining psychology and economics in the analysis of compliance: From enforcement to cooperation. Economic Analysis and Policy, 42(2), 133-151.
- Ameldan Alchair, A. R., & Prihatiningtias, Y. W. (2023). The effect of motivational posture on the compliance of land and building taxpayers of malang city: Pengaruh postur motivasi terhadap kepatuhan wajib pajak bumi dan bangunan (pbb) di kota malang. Telaah Ilmiah Akuntansi Dan Perpajakan, 1(1).
- Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36(2), 818-860.
- Basri, Y. M., Riska, N., & Berliana, D. (2023). MSMEs tax compliance in Indonesia during pandemic COVID-19: The role of risk preference as moderation. Journal of Tax Reform, 1(9), 6-18.
- Benk, S., Çakmak, A. F., & Budak, T. (2011). An investigation of tax compliance intention: A theory of planned behavior approach. European Journal of Economics, Finance and Administrative Sciences, 28, 180-188.
- Bougie, R., & Sekaran, U. (2020). Research methods for business: A skill-building approach. Wiley.
- Braithwaite, V. (2003). Taxing democracy: Understanding tax avoidance and evasion (1st ed.). Routledge.
- Braithwaite, V., Murphy, K., & Reinhart, M. (2007). Taxation threat, motivational postures, and responsive regulation. Law & Policy, 29(1), 137-158.
- Cahyonowati, N., Ratmono, D., & Dewayanto, T. (2021). Determinants of positive motivational postures: A survey in a Legal Entity State University. International Sustainable Competitiveness Advantage, 2(1), 324-333.
- Feld, L. P., & Frey, B. S. (2007). Tax compliance as the result of a psychological tax contract: The role of incentives and responsive regulation. Law & Policy, 29(1), 102-120.
- Gangl, K., Hofmann, E., Groot, M. De, Antonides, G., Hartl, B., & Kirchler, E. (2015). Taxpayers’ motivations relating to tax compliance: Evidence from two representative samples of Austrian and Dutch self-employed taxpayers. Journal of Tax Administration, 1(2), 15-25.
- Ghozali, I. (2016). Application of multivariate analysis with programs IBM SPSS 23 (8th ed.). Semarang: Publishing Agency Diponegoro University.
- Gunadi. (2013). Comprehensive guide to income tax, PT. Jakarta: Niaga Swadaya.
- Hariani, A. (2021). Dirjen Pajak: Rasio kepatuhan wajib pajak terus meningkat [Director General of Taxes: Taxpayer compliance ratio continues to increase]. Pajak.com. (In Indonesian).
- Harinurdin, E. (2009). Perilaku kepatuhan wajib pajak badan [Corporate taxpayer compliance behavior]. Journal of Administrative and Organizational Sciences, 16(2), 96-104. (In Indonesian).
- Harju, J., Matikka, T., & Rauhanen, T. (2019). Compliance costs vs. tax incentives: Why do entrepreneurs respond to size-based regulations? Journal of Public Economics, 173, 139-164.
- Heider, F. (1958). The psychology of interpersonal relations. New York, NY: Wiley.
- Horodnic, I. A. (2018). Tax morale and institutional theory: A systematic review. International Journal of Sociology and Social Policy, 38(9/10), 868-886.
- Kelley, H. H. (1973). The processes of causal attribution. American Psychologist, 28(2), 107-128.
- Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210-225.
- Kirchler, E., Kogler, C., & Muehlbacher, S. (2014). Cooperative tax compliance: From deterrence to deference. Current Directions in Psychological Science, 23(2), 87-92.
- Klemm, A., & Van Parys, S. (2009). Empirical evidence on the effects of tax incentives (IMF Working Paper No. 09/136).
- Latief, S., Zakaria, J., & Mapparenta. (2020). The influence of trust in the government, tax incentive policies, and tax benefits on taxpayer compliance. Journal of Accounting and Tax Analysis, 3(3), 271-289.
- Mangoting, Y., & Sadjiarto, A. (2013). The influence of motivational posture on individual taxpayer compliance. Journal of Accounting and Finance, 15(2), 106-116.
- Marandu, E. E., Mbekomize, C. J., & Ifezue, A. N. (2015). Determinants of tax compliance: A review of factors and conceptualizations. International Journal of Economics and Finance, 7(9), 207-218.
- Meiryani, M., Riantono, I. E., Lidiyawati, L., & Teresa, V. (2022). The impact of income tax incentives on taxpayer compliance on small and medium micro enterprises (MSMEs) in Indonesia. ICIEB ‘22: Proceedings of the 2022 3rd International Conference on Internet and E-Business (pp. 62-67).
- Naitili, S. L., Hambali, A. J. H., & Nurofik, N. (2021). Tax incentives and taxpayer compliance of micro, small and medium enterprises: The moderating role of tax literacy. Journal of Economics, Business, & Accountancy Ventura, 24(3), 420-430.
- Natariasari, R., & Hariyani, E. (2023). Factors that influence taxpayer compliance with information knowledge technology as a moderating variable. Indonesian Journal of Economics, Social, and Humanities, 5(1), 21-33.
- OECD. (2022). Revenue Statistics in Asia and the Pacific 2022: Strengthening Tax Revenues in Developing Asia. Paris: OECD Publishing.
- Puspitasari, E., & Meiranto, W. (2014). Motivational postures in tax compliance decisions: An experimental studies. International Journal of Business, Economics and Law, 5(1), 100-110.
- Rahmawati, R., & Yulianto, A. (2018). Analysis of the factors affecting individual taxpayers compliance. Accounting Analysis Journal, 7(1), 17-24.
- Ratnawati, V., Lesmanasari, R., & Fitrios, R. (2022). Determinasi kepatuhan wajib pajak dengan kepercayaan kepada pemerintah dan kondisi keuangan sebagai pemoderasi [Determination of taxpayer compliance with trust in the government and financial condition as moderation]. Jurnal Akuntansi dan Ekonomika, 12(1), 54-63. (In Indonesian).
- Ratnawati, V., Sari, R. N., & Sanusi, Z. M. (2019). Education, service quality, accountability, awareness, and taxpayer compliance: Individual taxpayer perception. International Journal of Financial Research, 10(5), 420-429.
- Sadjiarto, A., Fenicia, S., & Kezia, N. (2020). Motivation postures and tax incentive towards tax compliance of SMEs in Surabaya during the pandemic. Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (pp. 433-439).
- Saputro, R., & Meivira, F. (2020). The influence of owner education level, accounting practices and perceptions of tax incentives on SME tax compliance. EMBA Journal: Research Journal of Economics, Management, Business and Accounting, 8(4), 1069-1079.
- Sari, P. I., Dewi, N. L. P. N., Pradnyani, A., & Suprapto, P. A. (2022). The effect of tax incentives, taxpayer awareness, tax sanctions and implementation of e-filling on MSME taxpayer compliance. Journal of Applied Sciences in Accounting, Finance, and Tax, 5(1), 11-19.
- Song, Y. D., & Yarbrough, T. E. (1978). Tax ethics and tax attitude: A survey. Public Administrations Review, 38(5), 442-452.
- Sudiartana, M., & Mendra, N. P. Y. (2018). Taxpayer compliance in SMEs sector: A theory of planned behavior. Jurnal Keuangan dan Perbankan, 22(2), 219-230.
- Suhendra, B., Vince, R., & Ruhul, F. (2023). Factors affecting taxpayers compliance (Study on SMSEs taxpayers of KPP Pratama Pekanbaru-Tampan). Bilancia: Jurnal Ilmiah Akuntansi, 7(1), 420-439.
- Taufik, A. (2016). Pengaruh postur motivasi ditinjau dari commitment, capitulation, resistance, disengagement dan game playing terhadap kepatuhan wajib pajak orang pribadi [The influence of posture motivation is, viewed from commitment, capitulation, resistance, disengagement and game playing against individual taxpayer compliance]. Jurnal Bisnis dan Manajemen Islam, 4(1), 73-100. (In Indonesian).
- Utomo, L. P. (2015). Pengaruh postur motivasi atas cara pandang wajib pajak kepada fiskus terhadap kepatuhan pembayaran pajak orang pribadi [The influence of motivational posture on the perspective of taxpayers to tax authorities on compliance with individual tax payments]. Eksis: Journal of Economics and Business Research, 10(2). (In Indonesian).
-
-
Conceptualization
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Data curation
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Formal Analysis
Vince Ratnawati
-
Funding acquisition
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Investigation
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Methodology
Vince Ratnawati
-
Project administration
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Resources
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Software
Vince Ratnawati
-
Supervision
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Writing – original draft
Vince Ratnawati
-
Writing – review & editing
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
-
Conceptualization
-
The mediating role of emotional intelligence in the employees performance
Arief Tukiman Hendrawijaya , Tatang Ary Gumanti , Sasongko , Zarah Puspitaningtyas doi: http://dx.doi.org/10.21511/ppm.16(1).2018.14Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 145-154 Views: 2023 Downloads: 750 TO CITE АНОТАЦІЯThis study investigates the mediating effect of emotional intelligence on the relationship between motivation, compensation, satisfaction, work climate and employees’ performance. The sample consists of 96 field officials who were the government employees specializing in coping with the eradication of Dengue Hemorrhagic Fever (DHF) in the district of Jember, Indonesia. Results using path analysis reveal that all examined variables positively and significantly affect employees’ performance. The study finds that emotional intelligence mediates the relationship of work motivation, compensation, work satisfaction, and work climate with employees’ performance.
-
Fiscal stimuli and consolidation in emerging market economies
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 113-122 Views: 1737 Downloads: 160 TO CITE АНОТАЦІЯThe Great Recession has imposed vital limitations on the policy maker’s ability to react to further economic challenges. In this article, the authors set a purpose to assess the expediency and the size of fiscal consolidation or expansionary measures for countries with emerging markets depending on economic dynamics. The data on the episodes of large changes in fiscal policy, representing both fiscal stimuli and consolidation in Ukraine and in the EU countries with emerging market economies from 2001 to 2017, were evaluated. The authors examined the main reasons of fiscal policy’s volatility and its impact on economic growth. The countries with low and medium level of institutional framework for fiscal policy formulation could face permanent deficit and public debt problem. Episodes of expansionary fiscal adjustments based on government revenues cuts and spending increases were more effective compared with those that were entirely based on spending increases. Empirical investigation showed that successful fiscal consolidation measures obligatory included the government primary spending reduction. In those cases, the budget deficit-to-GDP and public debt-to-GDP ratios were declined. Medium-term priorities to develop the methodical bases of fiscal policy design were justified.
-
Antecedents of employee performance and the influence on employee job satisfaction in banking service sector in Indonesia
Banks and Bank Systems Volume 12, 2017 Issue #4 pp. 75-89 Views: 1454 Downloads: 750 TO CITE АНОТАЦІЯThe purpose of this study is to determine the difference between three antecedent variables of performance and the impact on employee job performance through reward, compared with institutions led by men and women. The method used was survey method. Quantitative explanation method was also used to explain the relation, difference, and influence between the variables. The type of data in this research is quantitative data. The data used in this study are primary those from the respondents' perception of the variables used. The population in this study was all bank employees in Jakarta in PT Bank X Tbk, PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk, PT Bank Tabungan Negara and Bank BCA. The research sample consisted of employees who directly worked under female and male middle managers in the same division. The sampling method was probability sampling according to which all population units have chance to be sampled because of the population’s homogeneity. The sample was determined by simple random sampling. Sampling of male and female employees was proportion of multistage random sampling method and sampling using procedure. To solve the problems of this study Structural Equation Modeling (SEM) analysis tool was employed using Analysis of Moment Structures (AMOS) 5 software. The result showed that the performance of employees led by male middle managers was determined by organizational culture and employee work motivation, but transactional leadership style couldn’t influence employee performance. Female managers’ leadership style had reciprocal influence on organizational culture while male managers’ leadership style didn’t have reciprocal influence on organizational culture. Employee work motivation was influenced by male and female middle managers’ leadership style. The reward received by employees led by male and female middle managers was influenced by employee performance. The job satisfaction of employees led by male and female middle managers was determined by intrinsic and extrinsic rewards they received. Male middle managers generally applied transactional leadership style while female used transactional and transformational leadership styles. Gender difference caused differences in behaviors, mentality, and emotional characteristics which are the results of socio-cultural constructs in the society which produced differences in leadership style, behavior and work attitude.