Effect Of Taxpayer's Knowledge And Awareness On Taxpayer Compliance In Paying Rural And Urban And Urban Building Taxes (PBB P2) In Medan Sunggal District, Medan City

by ADMIN 166 views

Effect of Taxpayer's Knowledge and Awareness on Taxpayer Compliance in Paying Rural and Urban and Urban Building Taxes (PBB P2) in Medan Sunggal District, Medan City

Introduction

Understanding the Importance of Taxpayer Compliance

Taxpayer compliance is a crucial aspect of a country's revenue generation, and it plays a significant role in the development of a region. In Indonesia, the Rural and Urban Land and Building Tax (PBB P2) is a significant source of income for local governments, including the city of Medan. The PBB P2 is a tax imposed on ownership, control, and utilization of land and buildings by individuals or legal entities. To support the implementation of regional autonomy, the central government gives the authority to the regional government in managing its regional potential and development.

The Role of Taxpayer Knowledge and Awareness

Taxpayer knowledge and awareness are essential factors that influence taxpayer compliance. Taxpayer knowledge refers to the understanding of tax laws and regulations, while taxpayer awareness refers to the understanding of tax obligations and the importance of paying taxes. In this study, we aim to explore the level of knowledge and awareness of taxpayers in Medan Sunggal District and its effect on compliance in paying the PBB P2.

Methodology

Research Design and Data Collection

This study uses a quantitative descriptive technique, which is carried out systematically and structured. The primary data is collected through questionnaires that are distributed using Google Questionnaires, which allow respondents to provide responses easily and quickly. The questionnaires are designed to gather information on taxpayer knowledge and awareness, as well as their compliance with paying the PBB P2.

Data Analysis

The data collected from the questionnaires is analyzed using statistical methods to determine the level of taxpayer knowledge and awareness, as well as their compliance with paying the PBB P2. The results are presented in the form of tables, graphs, and diagrams to facilitate understanding.

Results

Level of Taxpayer Knowledge and Awareness

The results of the study show that the level of taxpayer knowledge about PBB P2 in Medan Sunggal District reached 81%. This indicates that the majority of taxpayers have good knowledge about the tax they pay. However, the level of taxpayer awareness of the PBB P2 reached 84%, indicating high awareness among taxpayers of their tax obligations. Meanwhile, the percentage of taxpayer compliance in paying PBB P2 was 78%.

Effect of Taxpayer Knowledge and Awareness on Compliance

Although the level of knowledge and awareness of taxpayers is quite high, this research indicates that this does not have a significant effect on the level of taxpayer compliance in paying the PBB P2. This can reflect other factors that affect taxpayer compliance, such as dissatisfaction with the use of tax funds, lack of strict sanctions on violations, or economic conditions that may affect their ability to pay taxes.

Discussion

The Influence of Knowledge and Awareness on Tax Compliance

The influence of knowledge and awareness of tax compliance is a complex topic. Although these two factors are important, there may be other elements that dominate taxpayer compliance, such as the application of an efficient taxation system, transparency of tax use by the government, as well as incentives that can encourage compliance. Local governments need to consider strengthening communication with taxpayers, explaining how taxes are used for regional development, and provide incentives for those who obey paying taxes.

Creating a Supportive Environment for Taxpayer Compliance

To increase taxpayer compliance in paying PBB P2, the local government must create a supportive environment, including more active counseling regarding the benefits of paying taxes and providing good facilities to facilitate the payment process. With these steps, it is hoped that stronger awareness and knowledge can be created which eventually leads to a better level of compliance among taxpayers in Medan Sunggal District.

Conclusion

Implications for Policy and Practice

This study highlights the importance of taxpayer knowledge and awareness in influencing taxpayer compliance. However, it also suggests that other factors may play a more significant role in determining taxpayer compliance. Local governments need to consider a range of strategies to improve taxpayer compliance, including strengthening communication with taxpayers, providing incentives for compliance, and creating a supportive environment for taxpayer compliance.

Recommendations for Future Research

This study provides a foundation for future research on taxpayer compliance in Indonesia. Future studies could explore the role of other factors, such as economic conditions, tax administration, and taxpayer behavior, in influencing taxpayer compliance. Additionally, research could investigate the effectiveness of different strategies for improving taxpayer compliance, such as counseling, incentives, and education programs.

References

  • [1] Ministry of Finance of the Republic of Indonesia. (2020). PBB P2: A Guide to Understanding the Rural and Urban Land and Building Tax.
  • [2] World Bank. (2019). Tax Administration in Indonesia: A Review of the Current State and Future Directions.
  • [3] Indonesian Taxation Law. (2019). Law No. 6 of 1983 on General Provisions and Taxation.

Limitations of the Study

This study has several limitations. Firstly, the study relies on self-reported data from taxpayers, which may be subject to biases and errors. Secondly, the study only focuses on the level of taxpayer knowledge and awareness, and does not explore other factors that may influence taxpayer compliance. Finally, the study is limited to a specific region, Medan Sunggal District, and may not be generalizable to other regions in Indonesia.

Future Research Directions

Future research could explore the following directions:

  • Investigate the role of other factors, such as economic conditions, tax administration, and taxpayer behavior, in influencing taxpayer compliance.
  • Examine the effectiveness of different strategies for improving taxpayer compliance, such as counseling, incentives, and education programs.
  • Conduct a comparative study of taxpayer compliance in different regions in Indonesia to identify best practices and areas for improvement.

By exploring these research directions, future studies can provide a more comprehensive understanding of taxpayer compliance in Indonesia and inform policy and practice to improve taxpayer compliance.
Frequently Asked Questions (FAQs) on Taxpayer Compliance in Paying Rural and Urban and Urban Building Taxes (PBB P2) in Medan Sunggal District, Medan City

Q&A on Taxpayer Compliance

Q1: What is the Rural and Urban Land and Building Tax (PBB P2)?

A1: The PBB P2 is a tax imposed on ownership, control, and utilization of land and buildings by individuals or legal entities. It is a significant source of income for local governments, including the city of Medan.

Q2: What is the level of taxpayer knowledge about PBB P2 in Medan Sunggal District?

A2: The level of taxpayer knowledge about PBB P2 in Medan Sunggal District reached 81%. This indicates that the majority of taxpayers have good knowledge about the tax they pay.

Q3: What is the level of taxpayer awareness of PBB P2 in Medan Sunggal District?

A3: The level of taxpayer awareness of PBB P2 in Medan Sunggal District reached 84%. This indicates high awareness among taxpayers of their tax obligations.

Q4: What is the percentage of taxpayer compliance in paying PBB P2 in Medan Sunggal District?

A4: The percentage of taxpayer compliance in paying PBB P2 in Medan Sunggal District was 78%.

Q5: Does taxpayer knowledge and awareness have a significant effect on taxpayer compliance in paying PBB P2?

A5: No, this research indicates that taxpayer knowledge and awareness do not have a significant effect on taxpayer compliance in paying PBB P2. Other factors may play a more significant role in determining taxpayer compliance.

Q6: What are some of the factors that may affect taxpayer compliance in paying PBB P2?

A6: Some of the factors that may affect taxpayer compliance in paying PBB P2 include dissatisfaction with the use of tax funds, lack of strict sanctions on violations, or economic conditions that may affect their ability to pay taxes.

Q7: What can local governments do to improve taxpayer compliance in paying PBB P2?

A7: Local governments can create a supportive environment for taxpayer compliance by providing more active counseling regarding the benefits of paying taxes and providing good facilities to facilitate the payment process.

Q8: How can taxpayers improve their knowledge and awareness of PBB P2?

A8: Taxpayers can improve their knowledge and awareness of PBB P2 by attending tax education programs, seeking advice from tax professionals, and staying informed about tax laws and regulations.

Q9: What are some of the benefits of paying PBB P2?

A9: Some of the benefits of paying PBB P2 include contributing to the development of the region, supporting local government services, and avoiding penalties and fines for non-compliance.

Q10: Where can taxpayers find more information about PBB P2?

A10: Taxpayers can find more information about PBB P2 from the local government's website, tax offices, or by contacting tax professionals.

Additional Resources

  • [1] Ministry of Finance of the Republic of Indonesia. (2020). PBB P2: A Guide to Understanding the Rural and Urban Land and Building Tax.
  • [2] World Bank. (2019). Tax Administration in Indonesia: A Review of the Current State and Future Directions.
  • [3] Indonesian Taxation Law. (2019). Law No. 6 of 1983 on General Provisions and Taxation.

Conclusion

Taxpayer compliance is a crucial aspect of a country's revenue generation, and it plays a significant role in the development of a region. By understanding the factors that influence taxpayer compliance, local governments and taxpayers can work together to improve compliance and contribute to the development of the region.