The Influence Of Digital Literacy And The E-Filing System On Msme Tax Compliance

Abstract

The digital transformation of tax administration through the e-Filing system faces significant challenges in the adoption process, especially among Micro, Small, and Medium Enterprises (MSMEs) which have varying levels of digital literacy. This condition impacts the effectiveness of the implementation of tax digitalization policies. This study aims to analyze in depth the influence of digital literacy and the use of the e-Filing system on MSME tax compliance in Baubau City. The research method uses a quantitative approach with a causal associative design to determine the cause-and- effect relationship between variables. The study population was 8,319 MSME taxpayers, while the research sample of 99 respondents was determined using the Slovin formula and purposive sampling technique to ensure the suitability of respondent characteristics. Data were collected through distributing questionnaires with a five-point Likert scale and analyzed using multiple linear regression with the help of SPSS version 26. The results of the analysis show that digital literacy has a positive and significant effect on MSME tax compliance (t = 5.106; sig = 0.000 <0.05). The e-Filing system also has a positive and significant effect on tax compliance (t = 3.146; sig = 0.002 <0.05). Simultaneously, both variables have a significant effect on tax compliance with an F value of 41.861 and a significance of 0.000 <0.05. The Adjusted R Square value of 0.452 indicates that 45.2% of the variation in tax compliance is explained by digital literacy and the e- Filing system, while 54.8% is influenced by other external factors. This finding provides important empirical evidence regarding the strategic role of improving digital literacy and optimizing the e-Filing system as policy instruments to strengthen MSME tax compliance and support the digital transformation agenda for taxation at the regional level.