Mediating Effects of Tax Awareness on Mental Accounting and Tax Knowledge on Tax Compliance of MSME Taxpayers in Bukittinggi
Main Article Content
The growth of MSMEs in Indonesia, especially in Bukittinggi, has made a significant contribution to the Gross Domestic Product (GDP), but the level of tax compliance is still low. This study aims to analyze the influence of mental accounting and tax knowledge on MSME tax compliance, with tax awareness as a mediating variable. The research method used is quantitative, with data collection techniques in the form of questionnaires distributed to MSMEs in Bukittinggi. Data analysis was carried out using Structural Equation Modeling (SEM). The results of the study show that mental accounting and tax knowledge have a significant influence on MSME tax compliance, both directly and through tax awareness as mediation. The conclusion of this study is the importance of increasing tax awareness to increase MSME compliance in carrying out tax obligations so that it can support an increase in tax revenue from the MSME sector.
Keywords:
Tax Compliance, Mental Accounting, Tax Knowledge, Tax Awareness, MSMEs, Bukittinggi
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Vincent, R. C. (2023). Vertical taxing rights and tax compliance norms. Journal of Economic Behavior & Organization, 205, 443–467. https://doi.org/10.1016/j.jebo.2022.11.003
Aithal, A., & Aithal, P. S. (2020). Development and validation of survey questionnaire & experimental data–a systematical review-based statistical approach. International Journal of Management, Technology, and Social Sciences (IJMTS), 5(2), 233–251.
Al-Maghrebi, M. S., Ahmad, R., & Palil, M. R. (2016). Budget transparency and tax awareness towards tax compliance: A conceptual approach. South East Asia Journal of Contemporary Business, Economics and Law, 10(1), 95–101.
Appiah, T., Domeher, D., & Agana, J. A. (2024). Tax Knowledge, Trust in Government, and Voluntary Tax Compliance: Insights From an Emerging Economy. SAGE Open, 14(2), 21582440241234756.
Bornman, M., & Ramutumbu, P. (2019). A conceptual framework of tax knowledge. Meditari Accountancy Research, 27(6), 823–839.
Dolan, P., & Galizzi, M. M. (2015). Like ripples on a pond: Behavioral spillovers and their implications for research and policy. Journal of Economic Psychology, 47, 1–16. https://doi.org/10.1016/j.joep.2014.12.003
Duggan, M. (2016). Thinking tax: Mental [tax] accounting and voluntary compliance. International Conference on Tax Administration, 32.
Fuad, K., & Khusfiyah, L. (2019). Revealing Awareness and Compliance of Tax. Journal of Applied Accounting and Taxation, 4(2), 125–137.
Graham, S. (2020). An attributional theory of motivation. Contemporary Educational Psychology, 61, 101861. https://doi.org/10.1016/j.cedpsych.2020.101861
Kouam, J. C., & Asongu, S. A. (2022). Effects of taxation on social innovation and implications for achieving sustainable development goals in developing countries: A literature review. International Journal of Innovation Studies, 6(4), 259–275. https://doi.org/10.1016/j.ijis.2022.08.002
Lestary, S. R., Sueb, M., & Yudianto, I. (2021). The effect of tax fairness, tax socialization and tax understanding on tax compliance: a study on micro, small and medium enterprises (MSMEs). Journal of Accounting Auditing and Business-Vol, 4(1), 87–99.
Levy, B. (2014). Working with the grain: Integrating governance and growth in development strategies. Oxford University Press.
Muehlbacher, S., & Kirchler, E. (2019). Individual differences in mental accounting. Frontiers in Psychology, 10, 2866.
Nar, M. (2015). The effects of behavioral economics on tax amnesty. International Journal of Economics and Financial Issues, 5(2), 580–589.
Oktaviani, R., Kurnia, H., Sunarto, S., & Udin, U. (2020). The effects of taxpayer knowledge and taxation socialization on taxpayer compliance: The role of taxpayer awareness in developing Indonesian economy. Accounting, 6(2), 89–96.
Pakuan, H. M. L., & Daito, A. (2022). Taxpayer Awareness as a Mediating Factor in Tax Socialization, Tax Sanctions, and Taxpayer Compliance (Case Study: KPP Pratama South Cikarang, Bekasi Regency). Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 5(2), 8752–8765.
Parwati, N., Muslimin, M., Adam, R., Totanan, C., Yamin, N., & Din, M. (2021). The effect of tax morale on tax evasion in the perspective of Tri Hita Karana and tax framing. Accounting, 7(6), 1499–1506.
Sastika, W., & Secapramana, L. V. H. (2022). Identification of Factors that Influence the Attitude of the Millenial Generation towards Interest to Buy Counterfeit Products on the Online Marketplace. Budapest International Research and Critics Institute (BIRCI Journal), 5(3), 21170–21178.
Twum, K. K., Amaniampong, M. K., Assabil, E. N., Adombire, M. A., Edisi, D., & Akuetteh, C. (2020). Tax knowledge and tax compliance of small and medium enterprises in Ghana. South East Asia Journal of Contemporary Business, Economics and Law, 21(5), 222–231.
Vincent, R. C. (2023). Vertical taxing rights and tax compliance norms. Journal of Economic Behavior & Organization, 205, 443–467. https://doi.org/10.1016/j.jebo.2022.11.003
