THE EFFECT OF TAX UNDERSTANDING, TAX RATES, TAX INCENTIVES AND TAX SANCTIONS ON TAX PAYERS COMPLIANCE OF MSME IN NGAWI DURING THE COVID-19 PANDEMIC

Abstract

This  study  aims  to  examine  the  effect  of  tax  understanding,  tax rates,tax incentives, and tax sanction to the tax payers compliance of Micro Small and  Medium   Enterprises  (MSMEs)   in   Ngawi,   Indonesia  during  the   Covid-19  pandemic. This study uses primary data where data collection uses a questionnaire .  Data collection method is by distributing questionnaires to tax payers of Micro Small  and Medium Enterprises (MSMEs) in Ngawi, Indonesia. The sample used is 84  respondent. In this study using quantitative data analysis methods by classic test  consisting of the normality test, the multicollonearity assumtion test, the heteroskedastisitas test, multiple linear regression analysis, hypothesis testing, and  the  coefficient  of  determination  (R2)  test.  The  research  results  showed  that  the  variables tax understanding, tax incentives, and tax sanction has an effect while tax  rates hasn’t effect for MSME tax payers compliance.