Factors Affecting Taxpayer Compliance at KPP Pratama Medan Timur in the Covid-19 Endemic Period

Abstract

This research aims to analyze the influence of taxpayer knowledge and sanctions on Taxpayer Compliance at KPP Pratama Medan Timur during the Covid-19 Endemic period. This type of research is causality research. The sampling method used the Slovin formula with a total sample of 100 people. Primary data collection was carried out using questionnaires and interviews. The results of this research show that taxpayer knowledge has a significant influence on taxpayer compliance. In contrast, sanctions did not have a substantial impact on taxpayer compliance at the East Medan Pratama KPP during the Covid-19 Endemic period. These findings indicate that taxpayer knowledge plays a crucial role in shaping taxpayer compliance behavior. Having a good understanding of tax obligations and tax procedures can encourage taxpayers to comply with applicable tax regulations. On the other hand, results showing that sanctions do not have a substantial effect could be interpreted to mean that, in the context of the Covid-19 pandemic, taxpayers may be more influenced by other factors, such as difficult economic conditions or poor understanding regarding the effectiveness of sanctions. The implications of this research can provide guidance for the authorities, especially the East Medan Pratama KPP, in developing strategies to increase taxpayer compliance during the pandemic. Focusing on increasing taxpayer knowledge through tax education and information can be an effective step. Apart from that, further evaluation is needed to understand other factors that might influence taxpayer compliance amidst uncertain conditions due to the pandemic.