ANALISIS PERUBAHAN TARIF PPH FINAL ATAS UMKM TERHADAP KEPATUHAN WAJIB PAJAK.

The development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia has been continually increasing, contributing to as much as 60.51 percent of the GDP in 2019. This underscores the vital and strategic role of MSMEs in the national economy. Given the substantial potential of MSME tax revenue and the suboptimal level of tax compliance, the Government implemented a presumptive tax in 2013. Moreover, the Government has taken measures to reduce the final income tax rate for MSMEs from 1 percent to 0.5 percent, with the aim of facilitating the growth of MSMEs and increasing their participation in tax payments. Tax cut is one of the instruments in the supply-side tax policy that frequently used by the Government to stimulate productivity. Hence, it is not surprising that the government encourages the development of MSMEs by reducing the final income tax rate to 0.5 percent. This article aims to describe the effect of reducing the tax rate from 1 percent (based on PP 46/2013) to 0.5 percent (based on PP 23/2018) on state revenues and MSME taxpayer payment compliance. Using national monthly data from 2015-2021, a non-parametric statistical descriptive analysis was conducted with the Wilcoxon Signed Rank test. The study found that the tax rate adjustment - in this case, the reduction of the final income tax rate for MSMEs to 0.5 percent as per Government Regulation No. 23 of 2018 - has had a significant impact on state revenue and tax compliance. [ABSTRACT FROM AUTHOR]