Tax Education for Micro, Small, and Medium Enterprises: Understanding Final Income Tax At 0.5% for Online Traders in Salatiga City

Abstract

Tax compliance among micro, small, and medium enterprises (MSMEs) in Indonesia remains considerably low, particularly among online traders who operate through digital platforms. This community service study aims to improve the understanding of online traders in Salatiga City regarding their Final Income Tax (PPh Final) obligation at a rate of 0.5% as stipulated under Government Regulation No. 55 of 2022. The methods employed include structured counseling sessions, hands-on training, and guided tax reporting through the Directorate General of Taxes e-Filing application. The program was conducted from August to October 2023, involving 47 online traders affiliated with the Salatiga Digital MSME Community. Results demonstrated a statistically significant increase in participants' mean comprehension score from 48.3 to 82.6 (on a 100-point scale), alongside a 73.4% increase in tax compliance intention. A total of 38 out of 47 participants successfully created tax accounts and completed annual tax return (SPT) submission simulations independently. These findings confirm that structured, practice-based education effectively promotes voluntary tax compliance among MSME taxpayers and may serve as a replicable model for similar initiatives across Indonesian cities.