Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia
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Received July 21, 2023;Accepted September 6, 2023;Published September 15, 2023
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-1630-4546
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Link to ORCID Index: https://orcid.org/0009-0001-2172-4652,
Link to ORCID Index: https://orcid.org/0000-0002-3465-5932 -
DOIhttp://dx.doi.org/10.21511/ppm.21(3).2023.47
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Article InfoVolume 21 2023, Issue #3, pp. 601-613
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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
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JEL Classification (Paper profile tab)H71, M48
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References44
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Tables7
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Figures2
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- Figure 1. Empirical model
- Figure 2. Scatter plot
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- 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
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Conceptualization
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Data curation
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Formal Analysis
Vince Ratnawati
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Funding acquisition
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Investigation
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Methodology
Vince Ratnawati
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Project administration
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Resources
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Software
Vince Ratnawati
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Supervision
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Writing – original draft
Vince Ratnawati
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Writing – review & editing
Vince Ratnawati, Rusli Rusli, Nita Wahyuni
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Conceptualization
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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).2018.14
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 145-154 Views: 1818 Downloads: 678 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.
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Fiscal stimuli and consolidation in emerging market economies
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 113-122 Views: 1586 Downloads: 129 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.
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Evaluating elasticity of costs for employee motivation at the industrial enterprises
Petro Pererva, Oleksandr Hutsan , Valerii Kobieliev , Andrii Kosenko , Volodymyr Kuchynskyi doi: http://dx.doi.org/10.21511/ppm.16(1).2018.12
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 124-132 Views: 1275 Downloads: 193 TO CITE АНОТАЦІЯEmployee motivation at the industrial enterprises is one of the most important principles of modern management. The practice of production and commercial activities of domestic enterprises speaks for essential modifications in the approaches to identifying the methods of employee motivation.
In the meantime, at many industrial enterprises, motivational modules are limited to the level of salary payment. Therefore, the search for approaches to the formation of effective methods of employee motivation and the analysis of their classification peculiarities require implementing the complex scientific research and determine the relevance of the chosen topic. The purpose of the article is to adapt the notion of function elasticity to increase the employee motivation effectiveness at the domestic industrial enterprises. Increasing the effectiveness of employee motivation at an industrial enterprise is the object of the research.
The research findings are obtained using the theory and practice of expert methods and system analysis, whereby 26 basic (key) motivational measures were determined, which were divided into six block-modules: jurisdictions, effectiveness, social and psychological, indirect financial influence, and direct financial influence.
The weight of each of the motivational factors is determined and they were also classi¬fied according to this indicator. The notion of motivation elasticity is proposed, which makes it possible to assess the motivational measures performance both for every block-module and for every employee, team, production department or enterprise.
Motivation elasticity ratio for ten employees of Kharkiv Machine Engineering Plant FED is calculated. Recommendations for further research on the paper’s subject are proposed.