Public Governance Quality and Income Tax Non-Compliance Among Small and Medium Enterprises in Yemen

Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.Keywords: Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.

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Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

EuroMed Journal of Business ◽

10.1108/emjb-01-2020-0004 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ahmad Farhan Alshira'h ◽

Hasan Mahmoud Al-Shatnawi ◽

Manaf Al-Okaily ◽

Abdalwali Lutfi ◽

Malek Hamed Alshirah

Keyword(s):

Developing Countries ◽

Structural Equation ◽

Small And Medium Enterprises ◽

Tax Compliance ◽

Arab Countries ◽

Sales Tax ◽

Public Governance ◽

Content Type ◽

The Public ◽

Medium Enterprises

PurposeThe purpose of this study is to better understand the issues on tax compliance. This study aims to examine the influence of patriotism and public governance on the sales tax compliance of small and medium enterprises (SMEs) and to examine the interaction between patriotism and public governance on sales tax compliance.Design/methodology/approachThis study was carried out by soliciting the opinions of owner-managers of SMEs in Jordan through a survey that was distributed by self-administered. This paper uses partial least squares structural equation modelling to investigate the influence of patriotism, public governance and the interaction of these two mechanisms on sales tax compliance for a sample of 385 SMEs.FindingsThis paper finds that patriotism and the public governance increase and improve the level of sales tax compliance. The findings also supported the interaction effect of patriotism on the relationship between public governance with sales tax compliance. Thus, all the hypothesised relationships were supported.Practical implicationsTax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan, may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen the compliance of eligible SMEs to further boost their sales collections.Originality/valueVery few studies have examined the determinants of sales tax compliance, and there has been an absence of work that examines the influence of the patriotism and public governance on sales tax compliance. This paper, therefore, fills a gap in the literature by providing the first empirical evidence about the influence of patriotism and public governance on sales tax compliance of SMEs in developing countries. This study is the initial paper to examine the interaction between patriotism and public governance on sales tax compliance among SMEs in developing countries

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PERBANDINGAN KEBIJAKAN PAJAK PENGHASILAN ATAS UKM DI INDONESIA DENGAN NEGARA-NEGARA ANGGOTA OECD

Jurnal Vokasi Indonesia ◽

10.7454/jvi.v2i2.38 ◽

2014 ◽

Vol 2 (2) ◽

Author(s):

Elsie S. Kasim ◽

Thesa A. Purwanto

Keyword(s):

Small Businesses ◽

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Compliance ◽

Accounting System ◽

Taxation Policy ◽

Special Rules ◽

Tax Reporting ◽

Medium Enterprises

Government implement Government Regulation Number 46 Year 2013 regarding Income Tax on Income from Business that Have Certain Gross Circulation with the aim to improve tax compliance. For Small and Medium Enterprises, the application of this rule is expected to facilitate taxpayers in tax reporting. This study will analyze the application of 1% final income tax from the turnover of Small and Medium Enterprises policies. What are the underlying considerations to apply special rules for income tax for Small and Medium Enterprises, simplification of rules and procedures adopted and comparison of the various provisions of the few countries that have been surveyed. The discussion will be conducted on the application of tax policy for small and medium enterprises undertaken by the countries of the Organization for Economic Cooperation and Development (OECD) which has been surveyed. Taxation policy on small and medium enterprises that will be compared among others are income tax exemption to companies with a turnover below the threshold of small businesses; reimbursement of tax forms be presumptive tax calculation; use cash basis accounting system and accounting procedures more simplified.Keywords: Income Tax, SME, OECD.

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MICRO, SMALL, AND MEDIUM ENTERPRISES TAXPAYER PERCEPTION ON THE DETERMINATION OF FINAL INCOME TAX POLICY ACCORDING TO GOVERNMENT REGULATION NUMBER 23 YEAR OF 2018

International Journal of Law, Government and Communication ◽

10.35631/ijlgc.4150018 ◽

2019 ◽

pp. 174-182

Author(s):

Lina Said

Keyword(s):

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Descriptive Analysis ◽

Tax Rates ◽

Income Tax Policy ◽

The Government ◽

Knitting Industry ◽

Medium Enterprises

The Government has issued a new provision on Income Tax on Micro, Small, and Medium Enterprises (MSMEs), namely Government Regulation Number 23 the Year of 2018 about Income Tax Of Businesses Received or Obtained by Taxpayers Who Have Certain Gross Circulation, effective from 1st July 2018. The Government Regulation revokes Government Regulation Number 46 the year 2013 which has been effective for five years since its enactment on 1st July 2013. This new regulation is considered very important, especially for MSMEs because it regulates the reduction in final income tax rates for MSMEs with a turnover of maximum Rp. 4.8 billion per year, to 0,5% originally 1% (Government Regulation No.46/2013). The method used is descriptive analysis with a quantitative approach using questionnaires with respondents are MSMEs taxpayers in the knitting industry. The results of the research show that in general, knitting industry MSMEs do not know and understand about the implementation of Government Regulation Number 23 the Year of 2018. Taxpayer's perception of fairness is at 3.04, Certainty at 3.14, Convenience 3.20, and Economy/Efficiency 3.50.

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DAMPAK PERLAKUAN PERATURAN PEMERINTAH NOMOR 46 TAHUN 2013 ATAS PAJAK PENGHASILAN PADA UMKM DI GRESIK

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v5i2.2859 ◽

2014 ◽

Vol 5 (2) ◽

pp. 195

Author(s):

Faiqotul Ilmia ◽

Sri Andriani

Keyword(s):

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Rates ◽

Net Income ◽

Directorate General ◽

Qualitative Descriptive ◽

The Government ◽

Medium Enterprises ◽

The Impact

In achieving the desired development by Indonesia, the government requires revenue from the State Tax Revenue and Non-Tax Revenues. One of the efforts undertaken by the Directorate General of Taxation (DGT) is enacted Government Regulation No. 46 of 2013, the tax base used is the gross turnover of each month at 1 % final income tax rates. The emergence of these regulations is to provide convenience for taxpayers in determining the amount of income tax payable, but enactment of these rules in the middle of giving trouble for taxpayers in the calculation, depositing and reporting taxes for the year 2013. Purpose of this study was to determine the impact of treatment of PP 46 of 2013 on income tax on Micro, Small and Medium Enterprises (SMEs) in Gresik skull cap industry. This study used a qualitative descriptive approach with the aim of obtaining a picture of the object that is easily observed in the form of words on the focus of research on the impact of the enactment of Regulation 46 of 2013. The 3 (three) object of research is no skull cap Industry SMEs in Gresik . Data analysis aims to simplify the data processed, making it easy to read and interpret. Data were collected by means of observation, interviews, documentation. Analysis of the data through three stages: data reduction, data display, and conclusion. The results showed that the enactment of Regulation 46 of 2013 not only creates difficulties in terms of computation, depositing and reporting just as effective mid-year, but still there who do not know the regulations in terms of both has been the enactment of these regulations and in terms of the calculation mechanism. As for other effects of the government’s enactment of legislation, namely the amount of income tax payable is higher than the income tax calculations using norm bookkeeping or net income.

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Pengaruh Dimensi Keadilan, Sosialisasi Pajak, Sanksi Pajak, Penghasilan Wajib Pajak dan Pemeriksaan Pajak Terhadap Kepatuhan WPOP UMKM

E-Jurnal Akuntansi ◽

10.24843/eja.2019.v28.i02.p28 ◽

2019 ◽

Vol 28 (2) ◽

pp. 1550

Author(s):

Putu Nadiani Putri Utama ◽

Putu Ery Setiawan

Keyword(s):

Linear Regression ◽

Theory Of Planned Behavior ◽

Multiple Linear Regression ◽

Attribution Theory ◽

Income Tax ◽

Research Method ◽

Small And Medium Enterprises ◽

Test Analysis ◽

Tax Audit ◽

Medium Enterprises

This study aims to determine the effect of the dimensions of justice, socialization of taxes, tax sanctions, income taxpayers, and tax audits of individual taxpayer compliance Micro, Small and Medium Enterprises (MSMEs) registered at the Pratama Tax Service Office (KPP) Gianyar in 2017. The theories used in this study are Attribution Theory and Theory of Planned Behavior. A total of 100 MSME Personal Taxpayers registered at KPP Pratama Gianyar were selected as respondents using the Slovin formula. The research method used was accidental sampling using media questionnaires and technical analysis of the data of this study using classical assumption test analysis and multiple linear regression. The results of this study indicate that the dimensions of justice, tax socialization, tax sanctions, income of taxpayers, and tax audits have a positive and significant effect on taxpayer compliance with individual SMEs. Keywords: UMKM taxpayer compliance, dimensions of justice, socialization, sanctions, income, tax audit.

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The Effect of Tax Fairness, Tax Socialization and Tax Understanding on Tax Compliance: A Study on Micro, Small and Medium Enterprises (MSMEs)

Journal of Accounting Auditing and Business ◽

10.24198/jaab.v4i1.31998 ◽

2021 ◽

Vol 4 (1) ◽

pp. 87

Author(s):

Sizka Rismaningsih Lestary ◽

Memed Sueb ◽

Ivan Yudianto

Keyword(s):

Regression Model ◽

Income Tax ◽

Government Regulation ◽

Sampling Method ◽

Small And Medium Enterprises ◽

Tax Compliance ◽

Analysis Technique ◽

Small Medium Enterprises ◽

Medium Enterprises ◽

Tax Fairness

This research aims to identify the effect of fairness, socialization, and understanding on the Micro Small Medium Enterprises (MSMEs) taxpayer compliance towards Government Regulation number 23/2018 regarding income tax from business received or accrued by taxpayers who have certain gross turnover. This research used a quantitative approach, and data were collected using the Likert scale questionnaire. In this research, the population was 283 SME actors registered at the Cooperatives and Small and Medium Enterprises Office, Bandung. The sampling method used was purposive sampling. The data analysis technique used in this research is path analysis. Based on the partial test on the first regression model hypothesis, tax fairness and tax socialization are positively and significantly associated with the tax understanding. The second regression model hypothesis's partial test indicates that tax fairness does not affect, while the taxation socialization and understanding of taxation positively affect MSME taxpayers' compliance.

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THE ROLE OF INCOME TAX SYSTEM STRUCTURE IN TAX NON-COMPLIANCE BEHAVIOUR AMONG SMEs IN YEMEN

International Journal of Banking and Finance - Vol. 15, Number 2, 2020 ◽

10.32890/ijbf2021.16.2.2 ◽

2021 ◽

Vol 16 (Number 2) ◽

pp. 23-49

Author(s):

Lutfi Hassen Al-Ttaffi ◽

Hijattulah Abdul-Jabbar ◽

Saeed Awadh Bin-Nashwan

Keyword(s):

Income Tax ◽

Small And Medium Enterprises ◽

Tax Compliance ◽

System Structure ◽

Tax System ◽

Tax Rate ◽

Tax Systems ◽

High Level ◽

Medium Enterprises ◽

Compliance Behaviour

Tax is the main source of government revenue. However, a number of countries worldwide are increasingly besieged by challenges regarding compliance levels with the rules of tax systems. Thus, this paper aims to enhance an understanding of tax non-compliance behaviour by investigating the effect of the income tax system structure on Yemeni taxpayers’ behaviour. The study focuses on income tax compliance behaviour of owner-managers of small and medium enterprises (SMEs), as the Yemeni economy relies heavily on this sector. The SME sector represents 99.6 percent of business in Yemen. Based on a quantitative approach using a self-administered survey instrument, a total of 330 valid questionnaires were collected and the feedback provided analyzed. The results demonstrate that SME taxpayers exhibited a high level of tax non-compliance. Furthermore, the multiple regression analysis shows that the tax rate had a positive and significant influence on tax non-compliance behaviour, but the tax penalties rate did not. These results can be especially relevant to policymakers and practitioners of tax systems structures, particularly in a developing country such as Yemen.

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Analisis Pajak Penghasilan Bagi Wajib Pajak Badan Usaha Kecil- Menengah Di Indonesia

Binus Business Review ◽

10.21512/bbr.v3i2.1352 ◽

2012 ◽

Vol 3 (2) ◽

pp. 673

Author(s):

Fany Inasius

Keyword(s):

Comparative Research ◽

Income Tax ◽

Research Method ◽

Small And Medium Enterprises ◽

Document Analysis ◽

Tax Law ◽

Tax Rates ◽

Tax Rate ◽

Principle Of Justice ◽

Medium Enterprises

Income Tax on Small and Medium Enterprises (SMEs) has been amended in the Tax Law number 36 of 2008 concerning Income tax (the latest Income Tax Act). In the the latest Income Tax Act, tax rate for small and medium business entity with gross circulation up by 4.8 billion rupiahs receives 50% tariff cuts out of the normal rate. This implies a reduction in rates for small and medium enterprises since 2009 compared to rates based onthe previous Income Tax Act (the old Income Tax Act). However, in the calculation of income tax based on the principle of justice, the old Income Tax Act provides a sense of fairness as the basis of taxation based on profit compared to the latest Income Tax Act which based on sale revenues. This study focuses on a comparison of the tax on SMEs corporation by the latest Income Tax Act and the old Income Tax Act. From the research conducted using comparative research method, descriptive, and document analysis, it shows that there is a decrease in tax rates based on the latest Income Tax Act, but the principle of justice in the taxation of SMEs is still less than the old Income Tax Act.

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PERBANDINGAN SISTEM PERPAJAKAN TERHADAP USAHA MIKRO KECIL MENENGAH PADA PT. BERKAT TEKNIK JAYA

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.8.4.25122.2013 ◽

2013 ◽

Vol 8 (4) ◽

Author(s):

Sintya Clara Assa ◽

Jantje J. Tinangon ◽

Rudy Pusung

Keyword(s):

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Advantages And Disadvantages ◽

State Revenue ◽

Tax Returns ◽

The Government ◽

Medium Enterprises ◽

Taxation System ◽

General Taxation

Economic development of a country , is also caused by a number of micro, small and medium enterprises , as well as existing tax system in Indonesia has undergone some changes , to increase state revenue through tax receipts . This study aims to compare the general taxation system in accordance with the Government Regulation number 46 where applied in July 2013 and began to be paid in August 2013. Object of research is PT Berkat Teknik Jaya is a micro, small and medium enterprises company engaged in agriculture and trade. By taking the information in the form and amount of the income tax returns of the company. Based on calculations, by comparing the amount of tax due in the year 2013 by using each system of taxation, it is known that the amount of tax to be paid in accordance with the general taxation system that is Rp.21.000.000 while using Government Regulation No. 46 then the tax should in the pay of Rp .25.787.000. Based on the calculation and analysis , each system of taxation for micro, small and medium enterprises have advantages and disadvantages , but by terms of the amount of tax to be paid then it is more advantageous for the application in accordance with the general taxation system.

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