Analysis of the Participation of Micro, Small, and Medium Enterprises (MSMEs) Taxpayers in Utilizing Tax Incentives Affected by the COVID-19 Pandemic

This study aims to assess the effectiveness of the COVID-19 tax incentives that the government has issued. It focused on Micro, Small, and Medium Enterprises (MSMEs) taxpayers to participate in COVID-19 tax incentives. Using a qualitative method, this study used in-depth interviews with 2 informants who were a tax consultant and a small-medium enterprise accountant. The findings show that the effectiveness of the COVID-19 tax incentive is still lacking, and it is in line with the participation of MSMEs that is still low in utilizing tax incentives. The low participation of MSMEs in utilizing tax incentives can be seen from the data, which shows that after 5 months of running the program, out of around 2.3 million MSMEs, only 200,000 have taken advantage of this facility. The tax consultant states that the scheme that has been implemented in mitigating the financial burden of MSMEs is not effective for the object of incentives in not substantial. The informant suggests incentives to cover value-added tax also. The government is expected to create a new and better incentive scheme. The new incentive scheme is also to provide an equilibrium of responsibility for both government and society. This paper contributes theoretically by examining new types of tax incentives, namely COVID-19 tax incentives, and helping policymakers make better tax incentive schemes in the future.

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PELATIHAN PEMANFAATAN INSENTIF PAJAK BAGI UMKM PADA MASA PANDEMI COVID-19

SELAPARANG Jurnal Pengabdian Masyarakat Berkemajuan ◽

10.31764/jpmb.v5i1.6437 ◽

2021 ◽

Vol 5 (1) ◽

pp. 310

Author(s):

Vhika Meiriasari ◽

Mutiara Kemala Ratu ◽

Andini Utari Putri

Keyword(s):

Community Service ◽

Income Tax ◽

Small And Medium Enterprises ◽

Tax Incentives ◽

Additional Information ◽

Incentive Program ◽

Tax Incentive ◽

Service Activity ◽

The Government ◽

Medium Enterprises

ABSTRAKKegiatan Pengabdian Kepada Masyarakat ini dilakukan bertujuan memberikan informasi perpajakan bagi UMKM agar dapat memanfaatkan program Insentif Pajak yang diberikan Pemerintah pada UMKM di masa Pandemi COVID-19. Pada tahun 2020, ada sekitar 280.000 wajib pajak UMKM yang memanfaatkan atau sekitar 65% dari target. Yang artinya hanya 65% UMKM yang memanfaatkan insentif pajak tersebut. Insentif pajak merupakan kebijakan perpajakan yang diberikan oleh pemerintah kepada wajib pajak tertentu baik individu atau organisasi yang mendukung pemerintah, yang digunakan dalam memberikan dorongan dan kemudahan bagi wajib pajak agar tetap patuh dalam menjalankan kewajiban perpajakannya baik sekarang maupun di masa mendatang. Dimana Pandemi Covid-19 berdampak terhadap semua Usaha Mikro Kecil Menengah (UMKM) yang menjadi penopang perkembangan ekonomi Indonesia, banyak usaha UMKM di Indonesia mengalami penurunan omzet penghasilan bahkan sampai menutup usahanya dikarenakan kebangkrutan. Metode pelaksanaan kegiatan pengabdian kepada masyarakat ini dilakukan dengan cara Sosialisasi dan Pelatihan. Sosialisasi mengenai PMK Nomor 82/PMK.03/2021 yang kemudian dilanjutkan dengan pelatihan insentif pajak usaha mikro kecil menengah (UMKM) atau PPh final DTP. Hasil dari kegiatan ini ditemukan bahwa pelaku UMKM banyak yang belum paham cara menghitung dan menyetor Pajak Penghasilan UMKM dikarenakan terbatasnya sumber daya yang dimiliki. Dan setelah mengikuti kegiatan ini diharapkan dapat memberikan tambahan informasi dan kemampuan peserta dalam menghitung dan menyetor Pajak Penghasilan UMKM serta memanfaatkan program insentif pajak UMKM di masa Pandemi COVID-19. Kata kunci: insentif pajak; PPh final; UMKM; lapor pajak. ABSTRACTThis Community Service activity is carried out with the aim of providing tax information for MSMEs so that they can take advantage of the Tax Incentive program provided by the Government to MSMEs during the COVID-19 Pandemic. In 2020, there are around 280,000 MSME taxpayers who utilize or around 65% of the target. This means that only 65% of MSMEs take advantage of these tax incentives. Tax incentives are tax policies provided by the government to certain taxpayers, both individuals or organizations that support the government, which are used to provide encouragement and convenience for taxpayers to remain obedient in carrying out their tax obligations both now and in the future. Where the Covid-19 Pandemic has an impact on all Micro, Small and Medium Enterprises (MSMEs) which are the pillars of Indonesia's economic development, many MSME businesses in Indonesia have experienced a decline in income turnover and even closed their businesses due to bankruptcy. The method of implementing community service activities is carried out by means of socialization and training. Socialization regarding PMK Number 82/PMK.03/2021 which was then followed by training on tax incentives for micro, small and medium enterprises (UMKM) or final PPh DTP. The results of this activity found that many MSME actors did not understand how to calculate and deposit MSME Income Tax due to limited resources. And after participating in this activity, it is expected to be able to provide additional information and participants' abilities in calculating and depositing MSME Income Tax and taking advantage of the MSME tax incentive program during the COVID-19 Pandemic. Keywords:. tax Incentives; final income tax; MSMEs; tax report.

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Government Efforts to Increase MSME Sales in Indonesia

10.31219/osf.io/6ugty ◽

2021 ◽

Author(s):

Florencia Lianggono

Keyword(s):

Central Government ◽

Small And Medium Enterprises ◽

Social Assistance ◽

Tax Incentives ◽

Purchasing Power ◽

Government Assistance ◽

The Government ◽

Medium Enterprises

When the Covid-19 pandemic in Indonesia, Indonesia’s economy experienced a very drastic decline. The government is also preparing a strategy to save micro, small, and medium enterprises (MSMEs) by providing social assistance, tax incentives, relaxation, and credit restructuring, to expand financing. Many efforts to develop and empower MSMEs have been carried out by the Central Government, Provinces, Districts, and Cities, including state-owned enterprises and regional-owned enterprises. The government has prepared a budget of Rp 28 trillion to help business capital to 12 million small and ultra micro entrepreneurs by 2020. The purpose of government assistance is to increase people's purchasing power, reduce poverty and unemployment.

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Barking Up the Wrong Tree: SMEs' Perception of Tax using the ZMET Method

10.31219/osf.io/8f4kp ◽

2021 ◽

Author(s):

Novita Puspasari ◽

Eliada Herwiyanti ◽

Margani Pinasti

Keyword(s):

Mental Model ◽

Small And Medium Enterprises ◽

Marketing Research ◽

Qualitative Investigation ◽

Data Collecting ◽

The Government ◽

Zaltman Metaphor Elicitation Technique ◽

Medium Enterprises ◽

Depth Interviews

Small and Medium Enterprises (SMEs) has been a backbone for Indonesian economy over the years. This study aims to explore and gain an in-depth understanding of SMEs’ perceptions regarding tax imposed by the government. The study is a qualitative investigation in which nine in-depth interviews with SMEs were conducted based on the Zaltman Metaphor Elicitation Technique (ZMET). The findings reveal deep-seated perceptions in SMEs regarding to tax imposed on them. There are 24 elicited constructs which describe SMEs’ mental model of tax. The constructs are framed into four deep metaphors which reflect SMEs perceptions on tax: Distrust to the Government, Misclassification, Mistreatment and Disincentive. This study will contribute to provide suggestion to the government, particularly General Directorate of tax, that in order to give “stick” to SMEs, government may try to give “carrots” in SMEs tax cases. This study contributes to the use of ZMET as a data collecting method to examine issues that tend to be "sensitive". Previously, ZMET has been used widely in marketing research, however this research could prove that other topics of research could also use this method

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Tax incentives for R&D in the context of the development of fiscal space

Fìnansi Ukraïni ◽

10.33763/finukr2021.10.081 ◽

2021 ◽

Vol 2021 (10) ◽

pp. 81-97

Author(s):

Nataliya FROLOVA ◽

Keyword(s):

Small And Medium Enterprises ◽

Value Added ◽

Tax Incentives ◽

Aircraft Industry ◽

Tax Credit ◽

Tax Exemptions ◽

Fiscal Space ◽

Tax Benefits ◽

Basic Features ◽

Medium Enterprises

The article deals with the main R&D expenditure based tax incentives such as tax credit and enhanced allowances in the context of the development of fiscal space due to their impact on innovative activities of loss-making, small and medium enterprises as well as startups. The author disclosed basic features of R&D expenditure based tax incentives in comparison with tax exemptions and accelerated depreciation. Cross-country comparisons in OECD revealed that it is often a case when SMEs and startups enjoy R&D tax credit and enhanced allowance with higher rates. In addition, they can also claim full reimbursement of unused tax benefits for R&D while large companies can only count on partial or even non-reimbursement of unused tax benefits and limited carry over period. Implied tax subsidy rates on R&D are analyzed through different OECD countries, as well as through enterprises different in size and profitability. In 2019 the largest R&D tax benefits were offered to profitable SMEs in France (ITSR was 43%) and Portugal (ITSR was 39%). The ITSR methodology is used to work out scenarios of introduction of R&D expenditure -based tax incentives in Ukraine. Calculation results are presented. The state of R&D tax incentives in Ukraine in the case of aircraft industry is analyzed. The introduction R&D expenditure -based tax incentives is argued as a replacement of tax exemptions which are currently used as a measure for R&D promotion in the aircraft industry in Ukraine in terms of improvement of R&D tax support efficiency and spur successful development of high value-added industries as an important prerequisite for the development of fiscal space in Ukraine.

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Artificial Intelligence in Automated Bookkeeping: A Value-added Function for Small and Medium Enterprises

JOIV International Journal on Informatics Visualization ◽

10.30630/joiv.5.3.669 ◽

2021 ◽

Vol 5 (3) ◽

pp. 224

Author(s):

Nurul Akmar Azman ◽

Azlinah Mohamed ◽

Amsyar Mohmad Jamil

Keyword(s):

Artificial Intelligence ◽

Optical Character Recognition ◽

Small And Medium Enterprises ◽

Value Added ◽

Accounting System ◽

Document Recognition ◽

Record Keeping ◽

Small And Medium Enterprise ◽

Medium Enterprise ◽

Medium Enterprises

Bookkeeping plays a vital role in dealing with records of day-to-day financial transactions from invoices until payment. It is also a method of documenting all company transactions in order to create a collection of accounting documents. Studies show that an evolution of bookkeeping management from manual record keeping to electronic record keeping had simplified most burden of bookkeepers as well as more reliable and accurate. Bookkeeping includes, in particular, classifying items correctly and entering financial details into an accounting system. However, with the rise of artificial intelligence, automated bookkeeping system is common to large businesses tasks at real time with hassle free. The system will function more than just journal management but also a decision-making tool to any businesses. Despite the benefits of the system, many small and medium enterprises especially in Malaysia still hesitate to implement the system. Artificial intelligence will further improve automated bookkeeping making it simpler and efficient for all levels of businesses. This paper presents an Artificial Intelligence perspective and methods used in automated bookkeeping focuses on invoices processes such as Optical Character Recognition (OCR), for document recognition, machine learning and auto journal record entries. Besides that, its challenges to be implemented in small and medium enterprise. The result of these studies highlighted benefits in the automated bookkeeping process to suit Malaysian small and medium enterprises. Future work will look at the suggested intelligence features to be implemented for a more efficient automated bookkeeping for small and medium enterprise.

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The Effect of Tax Incentives Practices on Sustainability of Micro, Small and Medium Enterprises in Ethiopia During the Outbreak of Corona Virus Pandemic

10.21203/rs.3.rs-129777/v1 ◽

2020 ◽

Author(s):

Kanbiro Deyganto Orkaido ◽

Bekele Youna Beriso

Keyword(s):

Small And Medium Enterprises ◽

Tax Incentives ◽

Primary Data ◽

Positive Contribution ◽

Tax Rate ◽

Tax Incentive ◽

Tax Allowance ◽

Accelerated Depreciation ◽

Medium Enterprises ◽

Tax Holiday

Abstract Purpose: The aim of this study was to identify the effect of tax incentive practise on sustainability of MSMEs during outbreak of corona virus pandemic in Ethiopia. Design/methodology/approach: In order to achieve this objective, the researchers have employed quantitative research approach with explanatory research design in which six hypotheses have been tested. The primary data was collected from 300 respondents using structured questionnaires. Multiple regression model was employed to identify the effect of tax incentives on sustainability of MSMEs in Ethiopia. Findings: According to the regression analysis, this study revealed that tax holiday, tax allowance, reduction in tax rate, accelerated depreciation, loss carry forward and tax exemption have positive and statistically significant effect on the sustainability of the MSMEs. Based on the finding of the study was concluded that the existence of tax incentive practice has positive contribution to sustainability of the micro, small and medium sized enterprise.Research limitations/implications: The current study was geographically focus on Ethiopia by considering the micro, small and medium sized enterprises sector. The subject wise was focused on the effect of the tax incentives:(tax holiday, tax allowance, tax exemption, and accelerated depreciation, reduction in tax rate, and loss carry forward) and on the sustainability of MSMEs. The study used primary data which is limited to a year of 2020. It might be improved in the future if other researchers incorporate large firms in the country and uses secondary data for analysis. Practical implications: To survive, micro, small and medium scale enterprises need the support from the government in the form of tax incentives. The role of tax incentives in enhancing the growth of micro, small and medium sized enterprises is very significant on the sustainability of MSMEs as well as the economy as a whole. Hence, the findings and recommendations of the current study might serve as an ingredient and be informative to the policy makers on MSMEs sector. It might also give a general insight to the policy makers, academician and professional groups of society and the public at large with regard to the role of effect of tax incentives on the sustainability and growth of MSMEs during outbreak of coronavirus.Originality/value: This study contributes to empirical evidence about the effect of tax incentives practices on sustainability of micro, small and medium enterprises in Ethiopia by considering tax incentive practice in terms of tax holiday, tax allowance, reduction in tax rate, accelerated depreciation, loss carry forward and tax exemption. As tax incentives theories supported the findings of this study, we have concluded that tax incentive practices provided by government have positive contribution for the sustainability and growth of micro, small and medium sized enterprises in Ethiopia

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IMPLEMENTATION OF LEGAL PROTECTION BY THE GOVERNMENT IN ORDER TO EMPOWERMENT OF MICRO SMALL MEDIUM ENTERPRISE TO REALIZE THE JUSTICE ECONOMY (Research Study: The Office of Cooperative and Micro Small and Medium Enterprise Province of Central Java)

Diponegoro Law Review ◽

10.14710/dilrev.4.1.2019.105-113 ◽

2019 ◽

Vol 4 (1) ◽

pp. 105

Author(s):

Raden Ani Eko Wahyuni ◽

Darminto Hartono

Keyword(s):

Research Study ◽

Small And Medium Enterprises ◽

Legal Protection ◽

Economic Democracy ◽

Central Java ◽

Medium Enterprise ◽

The Government ◽

Medium Enterprises ◽

Role Of The Government

Micro, Small and Medium Enterprises try to grow and develop their business in order to build a national economy based on equitable economic democracy. The position of MSMEs is very important in economic development It is very important to do protection. Protection of MSMEs is assistance and support made by the government towards MSMEs. Protection in legal action, assistance in the production process to marketing and support in terms of capital. There is a debate that is found is how to issue law by the government in empowering MSMEs to realize equitable economic prosperity.The research in this paper used a normative juridical research method. The approach used in this study is socio legal approach which the law is conceptualized as a set of regulation that is valid in the society and the validity will be affected by other factors.This study intends to measure the extent of the role of the government and what efforts are being made especially by regional governments, in this case the Central Java Provincial Office of Cooperatives and SMEs in implementing legal protection in empowering MSMEs to realize economic welfare.

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Leader-Preneur: A Key to Successful Independent Character Education for Small and Medium Enterprise Practitioners Within a Village-Owned Enterprise Community in the Malang Regency

KnE Social Sciences ◽

10.18502/kss.v5i8.9362 ◽

2021 ◽

Author(s):

Agung Winarno ◽

Candany Putri Wardany

Keyword(s):

Character Education ◽

Small And Medium Enterprises ◽

Individual Motivation ◽

Business Units ◽

Main Challenge ◽

Medium Enterprise ◽

Medium Enterprises ◽

The Village ◽

Enterprise Community ◽

Depth Interviews

This study aimed to reveal how the village head and the management of the Bumdes Village-Owned Enterprises internalize entrepreneurial values and support Small and Medium Enterprises in the community, and the supporting and inhibiting factors. A descriptive qualitative approach was used to study Bumdes Maju Bersama in Malang Regency, and data were collected through case studies, in-depth interviews, observations and review of supporting documents. The data were analyzed using the 6P simultaneous stages, namely approach, extracting, deepening, matching, interpreting and presentation. The results of the study found that entrepreneurship education became meaningful if it was carried out by instructors who, in addition to having a position as the highest formal leader, were also experienced in the field of business and could provide examples and concrete solutions to participants. To succeed, community businesses needed support and assistance from top leaders. The supporting factors needed were individual motivation, intensity of interaction and communication between business units, as well as good expectations for future business development. The main challenge in managing SMEs in the Bumdes community was the mental attitude of wanting to be successful but being too lazy to learn new things. Keywords: Leader-preneurship, entrepreneurial values, the success of village-owned enterprises

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KEBIJAKAN INSENTIF PAJAK PENGHASILAN BAGI UMKM DI DIY: REALISASI DAN RELEVANSINYA DENGAN PRINSIP KESAMAAN DALAM PERPAJAKAN

Kajian Ekonomi dan Keuangan ◽

10.31685/kek.v14i2.65 ◽

2015 ◽

Vol 14 (2) ◽

pp. 45-64

Author(s):

Dahliana Hasan ◽

Adrianto Dwi Nugroho

Keyword(s):

House Of Representatives ◽

Income Tax ◽

Small And Medium Enterprises ◽

Fiscal Year ◽

Tax Incentive ◽

Incentive Policy ◽

The Future ◽

The Government ◽

Medium Enterprises

The tax incentive indirectly provided for micro, small and medium enterprises as laid down in Article 31E of the Income Tax Act is indicated of being discriminative, as the incentive will only be provided for Resident Corporate Taxpayer. Moreover, the policy is also considered ineffective, as many micro, small, and medium enterprises in Indonesia are roughly consisted of Individual Taxpayers. Therefore, there is a need for conducting a further study on the policy and perhaps formulating a better tax incentive policy for micro, small and medium enterprises in the future.This research aims at analyzing and providing an elaborative description on whether or not the tax incentive laid down in Article 31E of the Income Tax Act has violated the principle of equality in taxation, in which taxpayers being in the same circumstances shall be treated the same, and taxpayers not being in the same circumstances shall not be treated the same. Moreover, the research also aims at reviewing the implementation of the policy in Yogyakarta, Bantu!, and Sleman regencies within the 2009 Fiscal year. Based on the results of the above research, this research will attempt at formulating a better tax incentive policy for micro, small and medium enterprises in the future.The results show that even though the policy specifically targeted at Resident Corporate Taxpayers, it nevertheless upholds the principle of equality in taxation. Moreover, the implementation of the policy in three regencies in D1 Yogyakarta Province may not be evaluated yet, as the 2009 Fiscal Year has not ended, and taxpayers would only have to submit their tax files on April 2010 at the latest Lastly, in the future, the Government and the House of Representatives shall be able to formulate a better tax incentive policy for micro, small and medium enterprises by, among others, targeting the policy at such enterprises carried on by Resident or Nonresident Individual Taxpayers.

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INSENTIF PAJAK DALAM MERESPONS DAMPAK PANDEMI COVID-19 PADA SEKTOR PARIWISATA

Jurnal Pajak dan Keuangan Negara (PKN) ◽

10.31092/jpkn.v2i1.1008 ◽

2020 ◽

Vol 2 (1) ◽

pp. 124-137

Author(s):

Nafis Dwi Kartiko

Keyword(s):

Value Chain ◽

Value Added ◽

Tax Incentives ◽

Easy Access ◽

Business World ◽

Social Distancing ◽

Tax Incentive ◽

Incentive Policy ◽

Tourism Sector ◽

The Government

ABSTRAKThe social distancing and physical distancing policies due to the COVID-19 pandemic have disrupted the value chain of the business world, causing various impacts on the Indonesian economy, resulting in shocks in sectors in the economy. One of the sectors experiencing the worst shocks is the tourism sector. The policy pursued by the government to reduce these shocks is by providing an economic stimulus in the form of tax incentives. The tax incentives provided have not been able to accommodate all the needs of the Tourism Business in facing the COVID-19 pandemic. This encourages the author to find out the needs of the tourism sector in facing the negative impacts of the COVID-19 pandemic, the benefits of tax incentives in the tourism sector, and alternative tax incentive policy solutions to overcome economic problems in the tourism sector due to the COVID-19 pandemic. This research uses qualitative research methods with the type of library research. The results of this study indicate that there are two needs of the tourism sector that have not been responded to in the tax incentive policy by the government, namely support to increase demand and consumption, and easy access to business credit. The author at the end of the study recommends providing value-added tax incentives to increase demand and consumption, and tax incentives for platforms and lenders in fintech lending for easy access to business credit. Kebijakan social distancing dan physical distancing akibat pandemi COVID-19 menimbulkan gangguan pada rantai nilai dunia usaha sehingga menyebabkan berbagai dampak pada perekonomian Indonesia yang berakibat timbulnya goncangan pada sektor-sektor dalam perekonomian. Salah satu sektor yang mengalami goncangan terparah adalah sektor pariwisata. Kebijakan yang ditempuh oleh pemerintah untuk mengurangi goncangan tersebut adalah dengan cara memberikan stimulus ekomoni berupa insentif pajak. Insentif pajak yang diberikan ternyata belum dapat mengakomodir semua kebutuhan Usaha Pariwisata dalam menghadapi pandemi COVID-19. Hal tersebut mendorong penulis untuk mengetahui kebutuhan sektor pariwisata dalam menghadapi dampak negatif akibat pandemi COVID-19, manfaat insentif pajak pada sektor pariwisata, dan alternatif solusi kebijakan insentif pajak bagaimana yang dapat untuk mengatasi masalah ekonomi pada sektor pariwisata akibat pandemi COVID-19. Penelitian ini menggunakan metode penelitian kualitatif dengan jenis penelitian kepustakaan. Hasil penelitian ini menunjukkan bahwa terdapat dua kebutuhan sektor pariwisata yang belum direspons dalam kebijakan insentif pajak oleh pemerintah, yaitu dukungan untuk menaikkan permintaan dan konsumsi, serta kemudahan akses kredit usaha. Penulis pada akhir penelitian merekomendasikan untuk diberikannya insentif pajak pertambahan nilai untuk menaikkan permintaan dan konsumsi, dan insentif pajak untuk platform dan pemberi pinjaman dalam fintech lending untuk kemudahan akses kredit usaha.

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