Perceptions of MSME Actors Toward the Implementation of Tax Policies and Their Impact on Tax Compliance and Business Sustainability A Qualitative Study in South Jakarta

Abstract

This study examines the perceptions of Micro, Small, and Medium Enterprises (MSMEs) regarding the implementation of tax policies and their influence on tax compliance and business sustainability in South Jakarta. The research applies a qualitative approach through a case study method. Data were obtained from in-depth interviews with several MSME actors selected through purposive sampling techniques. The collected data were analyzed using data reduction, data display, and conclusion drawing methods. The findings reveal that MSME perceptions toward tax policies differ significantly. Some business owners perceive taxation as an important obligation that supports national development, while others consider tax policies burdensome due to limited tax literacy, inadequate socialization, and difficulties in understanding digital taxation systems. These conditions influence the willingness and ability of MSMEs to comply with tax regulations. Furthermore, the implementation of tax policies creates both administrative and financial consequences for MSMEs. On one side, tax policies encourage more structured financial administration and better business governance. However, on the other side, tax obligations may affect cash flow and business sustainability, particularly among micro-scale enterprises. Therefore, strengthening tax education, increasing tax socialization programs, and providing technical assistance are necessary to improve voluntary tax compliance and maintain MSME sustainability.