Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia


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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.

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    • 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
    • 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