Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia

Taxes are the most significant contributor to Indonesian budget; therefore, increasing taxpayer compliance is crucial for achieving tax revenue realization. This study aims investigate role of incentives and motivational postures in compliance. The analysis was conducted Pekanbaru, Riau, Indonesia, sample consisted MSME taxpayers registered at Pekanbaru Tax Service Office. Purposive sampling utilized collect data, 384 returned questionnaires, 254 were used statistical analysis. Multiple regression examine impact on compliance, moderated applied test moderating postures. findings showed that p-values first second hypotheses 0.00 0.001 (0.05, with a positive β value), third hypothesis had (< 0.05, negative value). result indicates first, second, accepted, which means more feel beneficial, greater their responsibilities. Additionally, significantly raise when they have posture decrease it if one. implications this influence authorities incentivize increase Knowledge taxpayer’s will make easier manage behavior