The Importance of Taxpayer Knowledge

Oct 13, 2025 by vinooalluri.com 100 views

Introduction

Taxpayer compliance is a crucial aspect of increasing state revenue through taxes. In the context of Small and Medium Enterprises (SMEs), which often become the backbone of the local economy, understanding of the taxation system and their tax obligations is very important. Sufficient taxpayer knowledge will help them understand the rights and obligations and the impact of tax compliance. For example, by having good knowledge, UKM taxpayers can avoid administrative sanctions that harm their business.

In this study, we aim to analyze the effect of taxpayer knowledge variables, taxpayer understanding, taxpayer awareness, and fiscus services on the compliance of the implementation of the self-assessment system implemented by the UKM Taxpayers in Medan, especially those registered in the KPP Pratama Medan Petisah. With a population of 9,888 taxpayers, the data was obtained from KPP Pratama Medan Petisah. In this study, researchers used a random sampling method (accidental sampling) and calculated the sample size with the Slovin formula, so as to obtain a sample of 100 taxpayers.

Methodology

The primary data collection method is carried out through a survey using a questionnaire consisting of 20 questions. To analyze data, researchers use multiple regression analysis methods. The results of data processing using IBM SPSS Statistic 25 software show that knowledge, understanding, taxpayer awareness, and fiscus services have a positive influence on the compliance of UKM Taxpayers in Medan City registered at KPP Pratama Medan Petisah.

The Importance of Taxpayer Knowledge

Taxpayer knowledge plays a vital role in understanding the taxation system and their tax obligations. Sufficient taxpayer knowledge will help them understand the rights and obligations and the impact of tax compliance. For example, by having good knowledge, UKM taxpayers can avoid administrative sanctions that harm their business. Taxpayer knowledge is also essential in helping them to understand the tax laws and regulations, which will enable them to make informed decisions about their tax obligations.

The Role of Taxpayer Understanding

Taxpayer understanding plays a significant role in encouraging them to be more active in reporting and paying taxes. A deep understanding will foster a high sense of responsibility and awareness, so that they are not only focused on compliance to avoid fines but also contribute to the country's economic development. Taxpayer understanding is also essential in helping them to understand the tax laws and regulations, which will enable them to make informed decisions about their tax obligations.

The Impact of Taxpayer Awareness

Taxpayer awareness is a driving force for them to obey tax obligations. When taxpayers feel they have high social responsibility, they tend to be more obedient in carrying out tax obligations. Taxpayer awareness is also essential in helping them to understand the tax laws and regulations, which will enable them to make informed decisions about their tax obligations.

The Importance of Fiscus Services

Good fiscus services also play a vital role in creating an atmosphere that supports tax compliance. Friendly, informative, and responsive services from tax officers will increase taxpayer confidence. When taxpayers feel that they get good service, they will be more likely to fulfill their tax obligations. Fiscus services are also essential in helping taxpayers to understand the tax laws and regulations, which will enable them to make informed decisions about their tax obligations.

Conclusion

This study provides important insights for policy makers. Increasing knowledge, understanding, and awareness of taxpayers through educational programs and improving the quality of fiscus services is a strategic step to encourage tax compliance among SME taxpayers. This effort will not only increase tax revenue, but will also contribute to better and sustainable economic growth in the city of Medan.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should increase taxpayer knowledge through educational programs to help them understand the taxation system and their tax obligations.
The government should improve the quality of fiscus services to increase taxpayer confidence and encourage them to fulfill their tax obligations.
The government should increase taxpayer understanding through educational programs to help them understand the tax laws and regulations.
The government should increase taxpayer awareness through educational programs to help them understand the tax laws and regulations and to encourage them to fulfill their tax obligations.

Limitations of the Study

This study has several limitations, including:

The study was conducted in a specific region, Medan City, and may not be generalizable to other regions.
The study was conducted on a specific population, UKM taxpayers, and may not be generalizable to other populations.
The study used a random sampling method, which may not be representative of the entire population.

Future Research Directions

Future research should focus on:

Conducting a study on a larger population to increase the generalizability of the findings.
Conducting a study in other regions to increase the generalizability of the findings.
Conducting a study on other populations to increase the generalizability of the findings.

Conclusion

In conclusion, this study provides important insights for policy makers on the effect of taxpayer knowledge, understanding, awareness, and fiscus services on compliance with the implementation of the self-assessment system by UKM taxpayers in Medan City. The study recommends increasing taxpayer knowledge, understanding, and awareness through educational programs and improving the quality of fiscus services to encourage tax compliance among SME taxpayers.

Q1: What is the purpose of this study?

A1: The purpose of this study is to analyze the effect of taxpayer knowledge variables, taxpayer understanding, taxpayer awareness, and fiscus services on the compliance of the implementation of the self-assessment system implemented by the UKM Taxpayers in Medan, especially those registered in the KPP Pratama Medan Petisah.

Q2: What is the population of this study?

A2: The population of this study is 9,888 taxpayers, obtained from KPP Pratama Medan Petisah.

Q3: What is the sample size of this study?

A3: The sample size of this study is 100 taxpayers, calculated using the Slovin formula.

Q4: What is the data collection method used in this study?

A4: The primary data collection method used in this study is a survey using a questionnaire consisting of 20 questions.

Q5: What is the data analysis method used in this study?

A5: The data analysis method used in this study is multiple regression analysis.

Q6: What are the findings of this study?

A6: The findings of this study show that knowledge, understanding, taxpayer awareness, and fiscus services have a positive influence on the compliance of UKM Taxpayers in Medan City registered at KPP Pratama Medan Petisah.

Q7: What is the importance of taxpayer knowledge?

A7: Taxpayer knowledge plays a vital role in understanding the taxation system and their tax obligations. Sufficient taxpayer knowledge will help them understand the rights and obligations and the impact of tax compliance.

Q8: What is the role of taxpayer understanding?

A8: Taxpayer understanding plays a significant role in encouraging them to be more active in reporting and paying taxes. A deep understanding will foster a high sense of responsibility and awareness, so that they are not only focused on compliance to avoid fines but also contribute to the country's economic development.

Q9: What is the impact of taxpayer awareness?

A9: Taxpayer awareness is a driving force for them to obey tax obligations. When taxpayers feel they have high social responsibility, they tend to be more obedient in carrying out tax obligations.

Q10: What is the importance of fiscus services?

A10: Good fiscus services also play a vital role in creating an atmosphere that supports tax compliance. Friendly, informative, and responsive services from tax officers will increase taxpayer confidence.

Q11: What are the recommendations of this study?

A11: The recommendations of this study are:

The government should increase taxpayer knowledge through educational programs to help them understand the taxation system and their tax obligations.
The government should improve the quality of fiscus services to increase taxpayer confidence and encourage them to fulfill their tax obligations.
The government should increase taxpayer understanding through educational programs to help them understand the tax laws and regulations.
The government should increase taxpayer awareness through educational programs to help them understand the tax laws and regulations and to encourage them to fulfill their tax obligations.

Q12: What are the limitations of this study?

A12: The limitations of this study are:

The study was conducted in a specific region, Medan City, and may not be generalizable to other regions.
The study was conducted on a specific population, UKM taxpayers, and may not be generalizable to other populations.
The study used a random sampling method, which may not be representative of the entire population.

Q13: What are the future research directions?

A13: Future research should focus on:

Conducting a study on a larger population to increase the generalizability of the findings.
Conducting a study in other regions to increase the generalizability of the findings.
Conducting a study on other populations to increase the generalizability of the findings.

Q14: What is the conclusion of this study?

A14: In conclusion, this study provides important insights for policy makers on the effect of taxpayer knowledge, understanding, awareness, and fiscus services on compliance with the implementation of the self-assessment system by UKM taxpayers in Medan City. The study recommends increasing taxpayer knowledge, understanding, and awareness through educational programs and improving the quality of fiscus services to encourage tax compliance among SME taxpayers.