The Role of Tax Planning and Tax Knowledge on Tax Compliance With Tax Digitalization as a Mediating Variable in the MSMe Sector

Gregorius Suhadi, Vincent Didiek Wiet Aryanto, Herry Subagyo

Abstract


Abstract: Tax planning and tax digitalization have received special attention in the context of taxation, especially in the taxpayer due to its important role in enhancing a tax compliance. This study aims to identify the role of tax planning on tax compliance with tax digitalization as a mediating variable in the MSME sector. This study used a survey method with 180 respondents. We analyzed the data using Smart-PLS (Partial Least Square) for Structural Equation Modelling (SEM). The results show that tax planning and tax digitalization positively affect tax compliance. Furthermore, tax digitalization as a mediator between them. This research provides further suggestions on how tax planning can improve tax digitalization in their tax compliance.

Keywords


Tax Planning; Tax Knowledge, Tax Digitalization; Tax Compliance.

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