Fhenomena

1. Effects of SME Tax Rate Facilities, Financial Conditions, SMEs Types and Size on Tax Compliance in Tangerang

2. Fhenomena • Motivation • Objective & Contribution • Implication • PP No. 23 of 2018 was born which gave a final withholding tariff relief for SME players to 0.5% (www.pajak.go.id) • Limitation literature that examines the tax compliance of SMEs is associated with a reduction in tariffs. • To adding reference on SME taxpayer compliance with a tax rate reduction as a moderating and beneficial variable policy makers. • The implications for management presented by the • results of the hypothesis. 4 3 2 1

3. Fenomena

4. Motivasi • Limitation of literature that examines the tax compliance of SMEs is associated with a reduction in tariffs refer to PP 23, 2018.

5. Research Questions • Question 1 • Does the Financial Condition affect the compliance of MSME Taxpayers? • Question 3 • Does the Company's Size Affect the SMEs Taxpayer Compliance? • Question 2 • Does the type of SME affect the compliance of SME’s taxpayers? • Question 4 • Do Financial Conditions, Types, and Measures influence the compliance of SME Taxpayers with a Decrease in Tax Rates as a moderating variable?

6. Research Contribution • To adding reference repertoire of finance research, types, and measures on SME taxpayer compliance with a tax rate reduction as a moderating and beneficial variable policy makers as material for consideration and references.

7. The Power of PowerPoint | thepopp.com

8. Previous Research 1). Monica (2013) stated that the financial condition of taxpayers is good, then the level of taxpayer compliance tends to increase. Conversely, if the financial condition of the taxpayer is low, then the level of taxpayer compliance tends to decrease, but she find that the financial condition of taxpayers does not have a significant effect on the relationship between taxpayers' perceptions of the quality of tax services and taxpayer compliance. 2). Prayatni  & Jati, (2016): Company's financial condition has a positive effect on taxpayer requirements. 3). Ananda, Kumadji, & Husaini (2015): Someone will be able to avoid their tax obligations if the financial condition is bad. The increasing number of MSME tax payers is not accompanied by awareness of MSME owners in fulfilling tax obligations. 4). Machfoedz (1994) stated that company size is a scale that can group companies into large and small companies. Therefore, companies that have large total assets tend to be more capable and stable to generate profits compared to companies with small total assets (Dewinta & Setiawan, 2016).

9. Methodology • Questionnaire • Distributed to 70 respondents (owner, manager and key costumer) in the form of questions that are made in such a way with the aim of the respondents are limited to choosing choices among a series of alternative (the closed question list). Mistry (2014).The questionnaire was distributed by print and online. • Validity and Realiability • Therefore the initial stage of this research is to test the validity and reliability of the list used in the questionnaire. After valid and reliable data, descriptive statistical analysis is carried out which is an instrument to describe a data statistically. • Normality, t and F Testing • -a assumption testing, the test carried out is the distribution normality test, the Kolmogorov-Smirnov Test Statistical Packages for Social Science (SPSS) method. • -a determinant coefficient test used to measure how far the ability of the model in explaining the variation of the dependent variable. • -t and F statistical test. • Data Collection Procedure • Data Analysis Procedure • Testing of assumption and hypotheses

10. Result and Analysis Table II Statistic Descriptive Table I. Respondents Description Table III t Test Result

11. Conclution Financial conditions do not affect mandatory compliance tax. Ordinarily caused by SMEs in Tangerang with high or low levels of profitability tend to have the same awareness to report taxes. This is contrary to the findings of Nastilova, Puspa, and Yunilma, 2014 which states that the perceptions of the personal financial condition of taxpayers and tax awareness have a significant effect on taxpayer compliance at KPP Pratama Padang but accordance with Nadia Monica ( 2013). This study found that the type of business has a negative influence on tax compliance, it can be caused when the greater the company's profits, then the greater the tax liability, consequently the taxpayer tends to try to reduce the tax costs, so that it can be said that tax compliance decreases. Previous research rarely measures the type of company according to MSME criteria according to PP No. 20 of 2008. Company size does not affect mandatory compliance tax. When company being bigger, then the need will be increasingly complex, consequently the costs incurred in operations even greater, so that the tax burden imposed may be not fulfilled because big companies are more important costs for the company's operational needs. This finding is contrary to Devinta and Setiawan (2016) who get the results that company size has a positive effect on tax avoidance. Financial Conditions, Types, and Measures have an effect simultaneously on the Compliance of MSME Taxpayers and by Decreasing Tax Rates as Moderating Variables. In general, it can be said that the government policy of lowering the tax rate for umkm from 1% to 0.5% was able to encourage tax compliance of MSMEs in the Bintaro Tangerang area.

12. Contribution: this research can contribute both academically and practically. Academically, it can be used as a reference literature for further research similar to this study. For practitioners, it can be used as input material, that there is a connection between things that are used as variables in this study. Limitation & Suggestion: Respondents are still answers to questionnaires that are inconsistent, according to observations of the researchers, this is because respondents who are less careful reading and understanding questions. So the suggestion of further research is to ensure that the respondents understand the tax question well by verifying the questions that were submitted or completed with the in-depth interview. The sample used is relatively limited because there are many respondents who are not willing to fill out the questionnaire, they concerns that occurred between respondents with data filled in the form of taxation. Furthermore, this research needs to be continued by randomly selecting questionnaires for respondents who have been recorded by the UMKM ministry and on a wider scale, such as covering 5 big cities or even from all provinces in Indonesia or compare to other developing country such as Malaysia, Philipina and Vietnam.

13. Thank You