Assessing the Role of Services, Incentives and Tax Knowledge Moderation on Tax Compliance

Abstract

Objective: This research aims to investigate the impact of tax services and tax incentive policies on the level of tax compliance, by considering the tax knowledge factor as a moderating variable. Time and Place of Research: Participants involved in this research are MSMEs who specialize in selling used cars in the Tangerang area and its surroundings. This research uses a quantitative approach by distributing surveys to 250 used car entrepreneurs in the Tangerang area and surrounding areas 2024. Methods: The data collection procedure using non-probability sampling involves the use of convenience sampling to distribute it. The analytical method used in this research involves the use of Structural Equation Modeling (SEM) techniques utilizing smart PLS 3 software. Conclusion: The findings from this research indicate that tax services do not make a positive contribution to tax compliance. However, tax incentives have a significant impact on the willingness to comply with tax obligations. Understanding taxes cannot influence the relationship between tax services and tax compliance, or between tax incentives and tax compliance. In addition, knowledge about taxes cannot influence the relationship between tax services and tax compliance, nor between tax incentives and tax compliance.