Tax Compliance of Village Owned Enterprises Based on Government Regulation (PP) No 23 Year of 2018
Taxes are source of income for a country to finance its activities in providing facilities and infrastructure as well as services to the community, while one of the largest sources of tax revenue comes from Micro, Small and Medium Enterprises, which in this study focus on Village Owned Enterprises (BumDes) Focus This research is with the implementation of Government Regulation No. 23 of 2018 which is an improvement from Government Regulation No. 46 of 2016 concerning tax rates for SMEs which were previously at 1% to 0.5% The purpose of this study is to provide fundamental knowledge about the factors that influence an SME to comply with paying taxes. Operationally, this research has the following objectives: (a) explore factors that influence MSMEs to comply with paying taxes, (b) test tax planning practices for MSMEs, (c) understandings for the government to find out what factors influence MSMEs to comply with paying taxes, (d) knowing the dominant factor for MSMEs as a driver of tax compliance. This research was tested using multiple linear regressions to determine the dominant factor. The results of this study indicate that only understanding, awareness, and sales variables affects the tax compliance, while socialization and trust have insignificant effect.