The Effectiveness of Tax Administration Digitalization to Reduce Compliance Cost Taxpayers of Micro Small, and Medium Enterprises

Erin Erin

Abstract


At this time, digitizing tax administration is one of the activities that can be an answer and development. The reason is that digitalization affects the role of the digital economy so that each country improves services, especially in tax administration. Indonesia is digitizing tax administration by implementing several technologies, especially in reducing taxpayer compliance costs for MSMEs. It is known that the number of SMEs in Indonesia continues to grow from 2015 to 2021, reaching 59 million business actors, so there is a need for more roles from the government to continue to improve taxpayer compliance for MSMEs. This research method uses qualitative descriptive and explanative. The data used is primary data collected through observation and survey distribution to SMEs. The results of this study show that knowledge, mediation, and tax satisfaction/perceived tax fairness variables affect the level of MSME taxpayer compliance in digitizing tax administration. Then, MSME taxpayers in meeting tax compliance costs, such as in tax services, the tax system is still not efficient and effective, as well as tax rates and sanctions that still tend to be burdensome for MSME taxpayers.


Keywords


tax knowledge; tax administration digitization; mediation; perceived tax fairness

Full Text:

PDF

References


Çetin Gerger, G. (2019). Tax Services and Tax Service Providers’ Changing Role in the IoT and AmI Environment: Principles, Technologies, and Applications. In Guide to Ambient Intelligence in the IoT Environment. Springer International Publishing.

Direktorat Jenderal Pajak. (2021). Tingkat Kepatuhan Pembayaran Pajak dengan Sistem Baru, Diakses dalam https://pajak.go.id/id/artikel/sistem-baru-djp-untuk-mendongkrak-tingkat-kepatuhan pada 12 Agustus 2021

Furman, J., Seamans, R. (2019). AI and the Economy. Innovation Policy and the Economy, Vol. 19, No.1, 161-191.

Ismail, et al. (2020). The Community Perceptions of Poverty in Gampong Ayon, Seulimeum Sub-district, Aceh Besar Regency (Research Results on March 2017). Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 270-275.

Huang, Z. (2018). Discussion on the Development of Artificial Intelligence in Taxation. American Journal of Industrial and Business Management, Vol. 8, No. 8, 1817- 1824.

Kementerian Koperasi dan UMKM Republik Indonesia. (2021). Growth of SMEs and Large Enterprise Data. Diakses dalam www.depkop.go.id pada 09 Agustus 2021

Kotnal, J. R. (2017). Perception towards Income tax E-Filing: An empirical investigation. Perception Journal, Vol. 2, No.6, 1-14

Makori, G. A., Alala, O. B., Owola, J., Musiega, D., Gogo, T. W., & Kipchumba, S. (2013). Examining the Effect of Tax Authority Regulation and Administration on Voluntary Compliance in Kenya: A Case of Small Scale Businesses in Kakamega Municipality, Kenya. International Journal for Management Science and Technology, Vol. 1, No. 5, 1–25

Marpaung, A. (2020). Zakat Regulation as a Reduction of Income Tax in Indonesia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 2109-2116.

OECD. (2016). Digital Economy: Innovation, Growth and Social Prosperity. OECD Ministerial Meeting – Cancún, Mexico, 21-23 June 2016. Diakses dalam http://www.oecd.org/internet/ministerial/STI-Cancun-2016-ENG.pdf pada 08 Agustus 2021

OECD. (2017). Digital Economy Outlok 2017. Diakses dalam https://espas.secure.europarl.europa.eu/orbis/sites/default/files/generated/document/en/ 9317011e.pdf pada 08 Agustus 2021

Oxford insights. (2019). Government Artificial Intelligence Readiness Index 2019. Diakses dalam https://ai4d.ai/wp-content/uploads/2019/05/ai-gov-readinessreport_v08.pdf pada 09 Agustus 2021

Peraturan Menteri Keuangan Republik Indonesia Nomor 74 Tahun 2012 Tentang Wajib Pajak

Peraturan Perpajakan Nomor 46 Tahun 2013 Tentang Administrasi Perpajakan

Rekarti, E., & Doktoralina, C. M. (2017). Improving Business Performance: A Proposed Model for SMEs. European Research Studies Journal, Vol. 20, No.3, 613– 623

Siregar, R., et al. (2019). The Effect of Corporate Taxpayer Compliance, the Increase of Corporate Taxpayers' Number and Tax Audits on Income Tax Receipts of Article 25 with Taxation Sanctions as a Moderating Variable in KPP Pratama Medan Petisah. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 385-400.

Spiegel, S. E., Kloss, A., & others. (2017). Determinants Of Tax Fairness Perception And The Role Of Self-Interest-Results From Two German Surveys. Eurasian Journal of Economics and Finance, Vol. 5, No. 4, 50–75.

Walsh, K. (2012). Understanding taxpayer behaviour--new opportunities for tax administration. The Economic and Social Review, Vol. 43, No. 3, 451–475.

Waluyo. (2016). Perpajakan Indonesia (Taxation in Indonesia). Salemba Empat. Jakarta, Indonesia: PT. Salemba Empat.




DOI: https://doi.org/10.33258/birci.v4i4.2666

Article Metrics

Abstract view : 23 times
PDF - 10 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.