Understanding Gaps in Tax Regulation: Legal and Compliance Challenges among MSMEs

Suwardi Suwardi, Dwi Hantoro Prakoso

Abstract


Tax regulation is intended to provide clarity, fairness, and certainty in state revenue collection. However, for Micro, Small, and Medium Enterprises (MSMEs), a significant gap often exists between regulatory formulation and actual understanding at the operational level. This study explores how comprehension gaps regarding Government Regulation No. 7 of 2021 and Government Regulation No. 55 of 2022 affect legal certainty and voluntary tax compliance among MSME actors. Utilizing a qualitative approach with thematic analysis, data were collected through semi-structured interviews with eight MSME owners from diverse sectors in East Java, Indonesia. The findings reveal that limited awareness and fragmented understanding of tax obligations contribute to perceptions of injustice, confusion in tax filing procedures, and fear of administrative sanctions. These gaps not only undermine the effectiveness of tax policy but also erode trust in the legal system among MSME actors. The study highlights the urgent need for more accessible, targeted, and sector-specific tax education, as well as regulatory simplification to enhance justice and compliance.

Keywords


MSMEs; Tax Regulation; Legal Certainty; Fiscal Justice; Tax Compliance

Full Text:

PDF

References


Adhikary, Bishnu Kumar., Kutsuna Kenji., Steffi Stephannie. 2021. Does The Government Credit Guarantee Promote Micro, Small, and Medium Enterprises? Evidence From Indonesia. Journal of Small Business and Entrepreneurship. Vol.33 Issue 3. https://doi.org/10.1080/08276331.2019.1666338

Anita, S. Y. (2020). Developing Micro, Small And Medium Enterprises Through Entrepreneurship Training And Growing Entrepreneurship Motivation (Empirical Case Study Of Small And Medium Enterprises In East Jakarta Small Industries Village). Dinasti International Journal of Education Management And Social Science, 1(5), 661–682. 3.

Alshira’h, A., & Abdul-Jabbar, H. 2020. Moderating Role of Patriotism on Sales Tax Compliance Among Jordanian SMEs. International Journal of Islamic and Middle Eastern Finance and Managen. Vol.13, Issue 3. https://doi.org/10.1108/IMEFM-04-2019-0139.

Asshiddiqie, J., & Safa’at, M. A. (2006). teori Hans Kelsen tentang hukum. Mahkamah Konstitusi RI, Sekretariat Jenderal dan Kenpaniteraan.

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101.

Castleberry, A., & Nolen, A. (2018). Thematic analysis of qualitative research data: Is it as easy as it sounds? Currents in Pharmacy Teaching and Learning, 10(6), 807–815.

Friedman, L. M. (1987). The Legal System: A Social Science Perspective. New York: Russell Sage Foundation.

Judijanto, L. (2024). Taxation Policy and Compliance Burden on MSMEs: An In-depth Legal Study in Indonesia. International Journal of Business, Law, and Education, 5(2), 1504–1597.

Kaharuddin, Minollah, Ca-Hyowati, R. R., & Nurbani, E. S. (2024). Implementation of Tax Incentives for Micro, Small, And Medium Enterprises at Special Economic Zone in Indonesia. Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi, 7(2), 263. https://doi.org/10.24090/VOLKSGEIST.V7I2.11056

Kartiko, G., Hudiarini, S. H. S., & Nurfitriasih, D. M. N. D. M. (2023). Implementation of Law Number 7 Of 2021 On Harmonization of Tax Regulations As An Effort to Improve the Budget Deficit And Increase The Tax Ratio. Journal of Law and Regulation Governance, 1(2), 76–88. https://doi.org/10.57185/JLARG.V1I2.18

Kementerian Koordinator Bidang Perekonomian Republik Indonesia. (2025, Januari 30). Siaran pers: Pemerintah dorong UMKM naik kelas, tingkatkan kontribusi terhadap ekspor Indonesia (hlm. 1). Kabupaten Tangerang.

Liu, N., Nikitas, A., & Parkinson, S. (2020). Exploring expert perceptions about the cyber security and privacy of Connected and Autonomous Vehicles: A thematic analysis approach. Transportation Research Part F: Traffic Psychology and Behaviour, 75, 66–86.

Maghfiroh, Dhinda, and Diana Fajarwati. 2016. Persepsi Wajib Pajak Mengenai Pengaruh Keadilan, Sistem Perpajakan dan Sanksi Perpajakan terhadap Penggelapan Pajak (Survey terhadap UMKM di Bekasi). JRAK: Jurnal Riset Akuntansi & Komputerisasi Akuntansi, Vol. 7, No. 01. https://doi.org/10.33558/jrak.v7i1.

Marzuki, M. (2007). Penelitian Hhukum. Jakarta: Kencana Prenada Media Group.

Matthew, O., Ufua, D. E., Olawande, T., & Edafe, O. D. (2020). Addressing Unemployment challenge through micro and small enterprises (MSEs): Evidence from Nigeria. Problems and Perspectives in Management, 18(2), 79.

Murphy, L., & Nagel, T. (2002). The myth of ownership: Taxes and justice. Oxford University Press.

Musimenta, D., Nkundabanyanga, S. K., Muhwezi, M., Akankunda, B., & Nalukenge, I. (2017). Tax compliance of small and medium enterprises: a developing country perspective. Journal of Financial Regulation and Compliance, 25(2), 149–175.

Naradda Gamage, S. K., Ekanayake, E. M. S., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. S. K. (2020). A review of global challenges and survival strategies of small and medium enterprises (SMEs). Economies, 8(4), 79.

Neuendorf, K. A. (2018). Content analysis and thematic analysis. In Advanced research methods for applied psychology (pp. 211–223). Routledge.

Nurbekova, G. T., Juchnevicius, E. Е., & Tussupova, L. K. (2024). An integrated approach to the concept and elements of tax administration: theoretical and legal aspects. Bulletin of the Karaganda University “Law Series,” 11429(2), 16–24.

Panjaitan, M. N., Maulidya, R., & Sianturi, R. D. (2024). Merintis Peluang Baru Menggembangkan Umkm Pedesaan Melalui Manajemen Retail. Jurnal Akuntansi, Manajemen Dan Ilmu Ekonomi (Jasmien), 4(03), 42–53.

Picas, S., Reis, P., Pinto, A., & Abrantes, J. L. (2021). Does tax, financial, and government incentives impact long-term portuguese smes’ sustainable company performance? Sustainability, 13(21), 11866.

Plato. 2004. The Republic, Hackett Publishing Company, Inc, United States of America, h. 110.

Pramana, P. A. A., Sudharma, K. J. A., Kurniawan, I. G. A., & Asefa, R. (2025). The Concept of Distributional Justice in Tax Policy: A Comparative Study Between The Theories of John Rawls And Robert Nozick. Kanun Jurnal Ilmu Hukum, 27(1), 175–200.

Rahmawati, Y. R. (2024). Keadilan Sosial dalam Penarikan Pajak Progresif: Analisis Dampak Sistem Pajak terhadap Beban Pajak pada Warga Kaya dan Miskin Di Indonesia. Restitusi: Jurnal Riset Perpajakan, 3(2), 47–56.

Rawls, J. (1971). A theory of justice, Harvard. Press, Cambridge.

Republik Indonesia. 1945. Undang-Undang Dasar 1945. Mahkamah Konstitusi Indonesia

Rukundo, S. (2020). Addressing the challenges of taxation of the digital economy: Lessons for African countries.

Rupeika-Apoga, R., Bule, L., & Petrovska, K. (2022). Digital transformation of small and medium enterprises: Aspects of public support. Journal of Risk and Financial Management, 15(2), 45.

Sen, A. (1999). Development as Freedom Oxford University Press Shaw TM & Heard. The Politics of Africa: Dependence and Development.

Sianipar, N. R., & Apriliasari, V. (2022). Dinamika Kepatuhan Wajib Pajak Dengan Peredaran Bruto Tertentu Dan Kaitannya Dengan Penerimaan Pajak Penghasilan Di Kpp Pratama Pematang Siantar. Jurnal Pajak Indonesia (Indonesian Tax Review), 6(2S), 589–602.

Soekanto, S. (2008). Faktor-Faktor yang Mempengaruhi Penegakan Hukum. Jakarta: Raja Grafindo Persada.

Sumampouw, W., Kurnia, K., & Arrobi, I. R. (2021). Perlindungan hukum terhadap usaha mikro kecil dan menengah pasca pemberlakuan undang-undang nomor 11 tahun 2020 tentang cipta kerja. Jurnal de Jure, 13(1).

Sumaryono, E. (2013). Etika dan hukum: Relevansi teori hukum kodrat Thomas Aquinas. PT Kanisius, Yogyakarta.

Thukral, E. (2021). COVID-19: Small and medium enterprises challenges and responses with creativity, innovation, and entrepreneurship. Strategic Change, 30(2), 153–158.

Tuckett, A. G. (2005). Applying thematic analysis theory to practice: A researcher’s experience. Contemporary Nurse, 19(1–2), 75–87.

Turunen, H., Vaismoradi, M., & Bondas, T. (2013). Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study. Nursing & Health Sciences.




DOI: http://dx.doi.org/10.18415/ijmmu.v12i8.7016

Refbacks

  • There are currently no refbacks.


Copyright (c) 2025 International Journal of Multicultural and Multireligious Understanding

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

International Journal of Multicultural and Multireligious Understanding (IJMMU) ISSN 2364-5369
https://ijmmu.com
editor@ijmmu.com
dx.doi.org/10.18415/ijmmu
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.