scholarly journals FACTORS THAT AFFECT TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES (SMES) IN LUSAKA, ZAMBIA

2020 ◽  
Vol 3 (1) ◽  
pp. 1-14
Author(s):  
Mazwi Thabani ◽  
Dr. Eng Kasongo Mwale Richard
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Lower Percentage ◽  
Tax Rates ◽  
The Government ◽  
Tax Holidays ◽  
The One ◽  
Microsoft Office ◽  
Medium Enterprises ◽  
Tax Payers

Purpose: Tax is an important stream of revenue for government’s development projects. However, tax compliance among SMEs is poor. Therefore, this study was conducted using SMEs in Lusaka, Zambia to evaluate and rank the factors that encourage non-compliance with tax obligation by SMEs.Methodology: The data analysis was done with the help of the statistical package for service solution (SPSS) and this hypothesis was tested with Microsoft Office Excel 2007 using the one sample z-test computed from the figures obtained in the summary statistics table.Findings: It was found that high tax rates and complex filing procedures are the most crucial factors causing non-compliance of SMEs. Other factors like multiple taxation and lack of proper enlightenment affect tax compliance among the SMEs interviewed only to a lesser extent.Unique contribution to theory, practice and policy: It is recommended that SMEs should be levied lower percentage of taxes to allow enough funds for business development and better chances of survival in a competitive market. The government should also consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future.

scholarly journals Factors affecting tax compliance of small and medium enterprises in Hung Yen province, Vietnam

Accounting ◽  
2022 ◽  
Vol 8 (2) ◽  
pp. 111-122 ◽  
Author(s):  
Hien Thu Nguyen
Keyword(s):  
Experimental Research ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Tax Rates ◽  
Corporate Tax ◽  
Statistical Software ◽  
Factors Affecting ◽  
Special Concern ◽  
The Government ◽  
Medium Enterprises

Corporate tax compliance has been an interest of policymakers in many countries. Taxes contribute the most to the government’s revenues in Vietnam in general and in Hung Yen in particular. Therefore, tax compliance of enterprises, including SMEs, attracts special concern of the Government and many localities. The objective of this study is to evaluate factors affecting tax compliance by examining 310 managers, tax accountants and accountants at SMEs in Hung Yen province. The survey data is collected by the statistical software SPSS 20. The experimental research results confirm that factors (the possibility of tax inspection, tax rates, tax penalties, and the complexity of tax policy, social norms and tax knowledge) have different influences on tax compliance in SMEs in Hung Yen province, Vietnam.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>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.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

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

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.

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

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.

scholarly journals EFFECTIVENESS OF TAXPAYER EDUCATION ON TAX COMPLIANCE FOR SMALL AND MEDIUM ENTERPRISES IN KENYA: A STUDY OF SELECTED BUSINESS ENTERPRISES IN KITENGELA TOWN IN KAJIADO COUNTY

2020 ◽  
Vol 1 (3) ◽  
pp. 114-123
Author(s):  
Robin Marita Aondo
Keyword(s):  
Reasoned Action ◽  
Small And Medium Enterprises ◽  
Pearson Correlation ◽  
Tax Compliance ◽  
Target Population ◽  
Fiscal Year ◽  
Tax Rates ◽  
Inferential Statistics ◽  
Compliance Cost ◽  
Medium Enterprises

This research paper aim was to establish the effectiveness of taxpayer education on tax compliance for SMEs in Kitengela town. There are reasons why KRA never met its revenue targets and the revenue collected has never surpassed the target set aside by the commission. The non-compliance of tax by SMEs can be attributed to the tax gap that is available in every fiscal year. KRA conducts taxpayer education to all registered SMEs in an effort to improve the existing level of tax compliance. The only way KRA will meet their target revenue is when they include all SMEs in the generation of the revenue. The study was anchored on Theory of Reasoned Action and Fisher Tax Compliance Model while the study variables were PAYE form of tax, tax rates, tax compliance cost, tax penalties and fines. The target population of the study were 1400 SMEs with a sample that was random stratified chosen of 140 SMEs. The data was analyzed using descriptive statistics, inferential statistics and SSPS version 24.0. The inferential statistics was employed to establish the relations that exist between the study variables. Pearson correlation matrix was used for predicting and describing the variables in terms of directions and magnitude while regression analysis was conducted at a level of 5%. The data analysis tools will be   SSPS and the use of inferential statistics. The study established that the effectiveness of taxpayer education on tax compliance and all the predictors as shown by beta coefficients: PAYE (? = 0.542); tax rates (? = 0.482) and tax penalties and fines (? = 0.632). However, the study established there is a positive but statistically insignificant relationship (? =0.06, p= 0.671>0.05) between tax compliance cost and tax payer education. The study concluded that tax rates, PAYE, tax penalties and fines contribute greatly to tax compliance and finally tax compliance cost have the most significant influence on tax compliance. The study recommends that KRA should have an office in every county that will address tax issues at county level and the services to be offered should include tax penalties, filing of tax returns, tax computation and tax differentiation.

TAXATION SYSTEM OF UZBEKISTAN: INFLUENCE OF TAX REFORMS ON SMALL ENTERPRISES

2011 ◽  
Vol 3 ◽  
Author(s):  
Makhamadali Dekhanov
Keyword(s):  
Tax Policy ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Tax Rates ◽  
Tax Reforms ◽  
Single Tax ◽  
Business Conditions ◽  
The Government ◽  
Medium Enterprises ◽  
Taxation System

    The problems of SME development and high tax rates have always been one of the most important social problems in any state. In recent years the taxation issue has gained a very big importance from the government policymakers. Politicians suggest further decrease of tax rates for small and medium enterprises and also improvement of single tax policy. This paper is dedicated to the analysis of influence of tax reforms on small enterprises in Uzbekistan.. Particularly it analysis how single tax effects the development and functioning of the SMEs. The base hypothesis used in this research paper is Laffer’ hypothesis, which states that decrease of tax rates will encourage the development of the enterprises and will raise more government revenues. This effect will be achieved through better business conditions, which ensures the financial sustainability of the business. Another point is the lower avoidance rate, where enterprises will not be more needed to hide their revenues and avoid taxes.The research results showed that implementation of lower tax rates and single tax policy, positively effect the development of the SME sector. Despite the policies and actions taken by government authorities, there is still space for improvements.

scholarly journals ANALYSIS OF FACTORS AFFECTING TAX COMPLIANCE BY SMES IN KIAMBU COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 60-72
Author(s):  
Simon Mbuguah ◽  
Prof. Mwambia Mwambia ◽  
Bernard Baimwera
Keyword(s):  
Tax Evasion ◽  
Survey Design ◽  
Tax Compliance ◽  
Modern Technology ◽  
Compliance Cost ◽  
Factors Affecting ◽  
Knowledge Requirements ◽  
The Government ◽  
Tax Holidays ◽  
Tax Payers

Purpose: The purpose of this study was to determine factors affecting tax compliance by Smesin Kiambu CountyMethodology: The study adopted descriptive survey design and the research. The study population was 1084Smes in Kiambu County where a sample size of 325Smes was selected. Data was collected through structured and unstructured Questionnaires. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents.Results: The study findings revealed that Non compliance opportunities, compliance cost, knowledge requirements and decision frames had a positive and significant effect on tax compliance. The study led to conclusion that the authorities had a weak capacity in detecting tax evasion, it was cheaper to bribe a tax official than pay full amount of tax, corrupt, fine and penalties deterred tax evasion and that degree of regulation deterred tax evasion, that tax system and rates affected the rate and amounts of tax evasion, nature and degree of regulations affected tax evasion, size and how the business was structured had a direct or indirect effect on tax evasion, location and focus of business affected tax evasion and that the type of business the tax payers were in affected tax evasion.Policy recommendation: The study recommended that the authorities should adopt high and modern technology to help in detecting tax evasion, proper measures should be emphasized on officials taking bribes, fines and penalties should be issued to those evading paying tax and that proper regulatory framework should be put in place to deter tax evasion and that the government should consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future. 

scholarly journals The Presumptive Tax Regime on Micro, Small and Medium Enterprises in Indonesia

2020 ◽  
Vol 5 (6) ◽  
pp. 50
Author(s):  
Chandrika Aditya
Keyword(s):  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Tax Administration ◽  
Related Literature ◽  
State Revenue ◽  
The Government ◽  
Medium Enterprises ◽  
Tax Cuts

In July 2013, Indonesia implemented the presumptive tax regime on micro, small and medium enterprises (MSMEs) by assigning Government Regulation No.46/2013. This regulation simplified the tax administration and provides tax cuts to MSMEs to help them grow and encourage voluntary tax compliance, which eventually will increase their contribution to state revenue. This study provides an analysis of the implementation of this new tax regime by comparing related literature on practices of this tax regime in many countries with the recent conditions in Indonesia after this regulation was applied. It seems that the new tax regime encourages voluntary tax compliance and stimulates the contribution of MSMEs to state revenue. However, some challenges, such as different definitions, lack of tax knowledge, impartiality to business losses, and the indication of tax avoidance must be overcome by the government by improving policies that favor MSMEs. Keywords: Indonesia, MSMEs, presumptive tax, threshold

scholarly journals Pengaruh Pengetahuan Wajib Pajak, Administrasi Pajak, Tarif Pajak dan Sanksi Perpajakan terhadap Kepatuhan Pajak Pada Pelaku Usaha UMKM di Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 288
Author(s):  
Gandy Wahyu Maulana Zulma
Keyword(s):  
Small And Medium Enterprises ◽  
Statistical Tests ◽  
Tax Compliance ◽  
Tax Administration ◽  
Tax Rates ◽  
Medium Enterprises ◽  
Positive Effect

This study aims to test the determinants of tax compliance in small and medium enterprises (MSMEs) empirically, by considering several aspects such as tax knowledge, tax administration, tax rates, and tax sanctions in influencing the compliance of MSME taxpayers in Indonesia. The population and sample in this study focus on businesses with a turnover of less than 4.8 billion, which are included in the MSME sector. A total of 154 questionnaires were collected and can be used for further analysis through a series of statistical tests. The results showed that tax knowledge, tax administration, and tax sanctions have a positive effect on tax compliance in Indonesia. These findings indicate that better knowledge of tax, tax administration, and enforcement of fair and transparent tax sanctions can improve tax compliance.

Does religious perspective influence tax non-compliance? Evidence from Yemen

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lutfi Hassen Ali Al-Ttaffi ◽  
Hijattulah Abdul-Jabbar ◽  
Saeed Awadh Bin-Nashwan
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Content Type ◽  
Tax Rate ◽  
Taxation Policy ◽  
Policy And Strategy ◽  
The Government ◽  
The Right ◽  
Medium Enterprises ◽  
Compliance Behaviour

Purpose This paper aims to enhance the understanding of tax non-compliance behaviour of owner-managers of small and medium enterprises (SMEs) in Yemen. Drawing on the behavioural perspective and not on the Sharia per se, this study investigated the perspectives of Muslims towards government’s right to impose tax, summarised in three categories: forbidden, permissible and permissible under certain conditions. Design/methodology/approach This study was conducted using a self-administered survey to collect the required data from a sample of 500 SMEs in Yemen. Non-compliance is measured in terms of a single hypothetical tax scenario covering four types of tax situations. Yet, Muslims’ perspective towards the government’s right to impose tax was measured using the three perspectives stated above. Findings As the major finding, Muslims’ perspective towards taxation has a significant influence on their likely tax compliance behaviour. Specifically, the taxpayers who believed that tax is totally permissible (i.e. the government has the right to impose tax) were more compliant than those who believed that tax is totally forbidden. Furthermore, taxpayers’ non-compliance decisions are statistically related to tax rate and penalties. Practical implications The findings could serve as a useful input for taxation policy and strategy in Yemen. It is recommended that government should stress the importance of paying tax as a citizen’s obligation and also emphasise the religious legality of taxation, as it is used for public purposes. Originality/value This study differs from the existing literature in that its empirical investigation scrutinises the effect of citizens’ perspectives towards taxation on their non-compliance behaviour within the Islamic religion itself, particularly, in a typical Muslim community such as Yemen. The study is pioneer in adopting the views of different scholars on the government’s right to collect taxes based on three religious views (forbidden, permissible and permissible under certain conditions), which were used for measurement.

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