Building Tax Awareness and Compliance in Small Medium Enterprises (SME): A Comprehensive Taxation Education Program

The Faculty of Economics at the State University of Jakarta held an international webinar, on Friday, May 22nd 2024, with the theme “Building Tax Awareness and Compliance in Small Medium Enterprises (SME): A Comprehensive Taxation Education Program”. This event was held virtually through Zoom Meetings, which facilitated participants from SMEs, Lecturers, Students of State University of Jakarta, and Students of University Technology MARA Malaysia. This webinar featured three speakers, for the first speaker, Assoc. Prof. Dr. Razana Juhaida Johari, a distinguished Associate Professor from the University Technology MARA Malaysia, the second speaker was Rizky Tiaro Sulistyo, S.Tr.Ak., an executive from the Directorate of International Taxation, and the third speaker was Muzaki Andriawan P. S.E., BKP, CTAP, a tax consultant at PT Jawara Mitra Consulting.

The event began with the conditioning of participants to enter the Zoom room at 09.00 WIB. It was then continued with the opening of the event by Yohanes as the Master of Ceremony (MC) by leading the prayer and singing the Indonesian national anthem, namely “Indonesia Raya”. After that, there was an opening speech by Hera Khairunnisa, S.E., M.Ak., as P2M Coordinator and committee chair. Followed by remarks by Dr. Indra Pahala, M.Si., as Deputy Dean for Student Affairs and Alumni of the Faculty of Economics, State University of Jakarta. Then enter the core event, namely the material delivery from the three speakers guided by Putri Haryani, S.Tr.Ak., M.Sc., as moderator. The core activity lasted 45 minutes for each speaker, which consisted of 30 minutes of material sessions and 15 minutes for question and answer sessions. Every time the material session starts, the moderator will read the speaker’s CV first.

Assoc. Prof. Dr. Razana Juhaida Johari, as the first speaker explained accounting concepts for MSMEs.  There are 4 points discussed in this material. First, an overview of accounting principles and practices for MSMEs. Second, financial planning & budgeting for MSMEs. Third, Financial statements for MSMEs, and finally Accounting concepts for MSMEs. Assoc. Prof. Dr. Razana Juhaida Johari, closed the material with the conclusion that accounting concepts are very important for MSMEs, to ensure that the financial statements made are reliable, accurate, and consistent. Complying with accounting principles and creating a framework for recording and reporting financial transactions, makes it easier for owners to make decisions. Then, followed by a QNA session and certificate awarding which the moderator.

Rizky Tiaro Sulistyo, S.Tr.Ak., as the second speaker presented material on the Taxation Education Program for MSMEs. This material began with an introduction to The Organisation for Economic Co-operation and Development (OECD). The OECD is an international organization that aims to promote policies that can improve economic and social levels throughout the world. The OECD also conducts discussions on various economic and social issues. Currently, the OECD has 38 members, all from developed countries. Indonesia is not yet a full member of the OECD, but it is targeted to join fully in 2027.

Based on the speaker’s explanation, factors that can cause tax compliance for MSMEs can be divided into two, namely factors that can be controlled by the taxation authority and factors that cannot be controlled by the taxation authority. Factors that can be controlled by the taxation authority can be in the form of taxation services, the level of understanding of taxation, the level of complexity of tax policy changes, and the obligation to report tax returns. Meanwhile, factors that cannot be controlled by the taxation authority can be MSME cash flow problems, limited time and resources, and rapid changes in the business environment. The speaker also conveyed that there are three kinds of strategies that can be applied by tax authorities in improving MSME tax compliance, namely making a strategic plan specifically for MSMEs, implementing the plan and preparing the organization, and understanding the level of effectiveness and assessment of the strategy.

Based on the data presented by the speaker, the number of MSME players who have NPWP is 64 million and only 3.5% of them made tax payments in 2020. Therefore, tax revenue from MSMEs is only 1% when compared to all tax revenues in Indonesia. Then, followed by a QNA session and certificate awarding which the moderator guided.

Muzaki Andriawan P. S.E., BKP, CTAP, as the third speaker explained the material on Income Tax on MSMEs. The material presented was related to the concept of income tax based on government regulations, tax subjects, tax objects, and periods detailed with several supporting examples. The basis of tax imposition as well as calculation and deposit became the sub-material presented. In his presentation, he explained the basis of personal tax imposition. In individuals, no tax is imposed until the gross circulation reaches IDR 500,000,000, but later the calculation will be cumulative. Then, followed by a QNA session and certificate awarding guided by the moderator.

At 12.02 WIB, the closing was carried out by the MC which signaled the end of this MSME tax webinar. This webinar is expected to increase the understanding and awareness of Small and Medium Enterprises players about the importance of tax compliance. Through this comprehensive education program, we aim to help MSME entrepreneurs better understand their tax obligations, so that they can manage their businesses more efficiently and in compliance. As such, this increased tax awareness will hopefully contribute to healthier and more sustainable economic growth. (SSR/DMF/ELZ)

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