Title: THE INFLUENCE OF TAX LITERACY AND MORALITY ON TAX COMPLIANCE MSME IN KARANGANYAR WITH TAX AWARENESS AS A MODERATOR VARIABLE
Author: Claralin Solissa and Ingrid Panjaitan
Abstract:

The objective of this study is to analysis the influence of tax literacy and morality on tax compliance among MSME taxpayers in Karanganyar, with tax awareness as a moderating variable. The research formulates several issues, including the impact of tax literacy and morality on taxpayer compliance. This study employs quantitative data collected through questionnaires. Based on the multiple regression analysis, tax literacy and tax morality significantly influence tax compliance among MSME taxpayers. Tax awareness serves as a moderator that strengthens the relationship between literacy and morality with compliance. It is concluded that enhancing tax literacy and awareness among MSMEs is crucial for improving tax compliance, and it offers recommendations for the development of tax education programs and the reinforcement of moral values.

Keywords: tax literacy, morality, tax compliance, tax awareness, MSME
DOI: https://doi.org/10.38193/IJRCMS.2025.7333
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Date of Publication: 21-06-2025
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Published Vol & Issue: Volume 7 Issue 3 May-June 2025