Motivation posture and tax compliance among small and medium enterprises in Kelantan during COVID-19 pandemic / Aslamaitulakma Mohamad

Many governments around the world are concerned about tax compliance. The topic of tax compliance has long been debated. Previous research has revealed that people have traditionally been reluctant to pay their taxes. According to the literature, the small-scale enterprises is a difficult party when it comes to paying taxes. Despite the fact that the number of Small and Medium Enterprises (SMEs) is increasing, tax revenue from this sector remains negligible. These SMEs face difficulties in keeping their businesses afloat during the pandemic due to factors such as government policy on movement control order, insufficient cash flow, and outmoded marketing techniques. As a result, the purpose of this research is to examine the relationship between motivation posture (commitment, capitulation, resistance, and disengagement) and tax compliance among Small and Medium Enterprises (SMEs) in Kelantan during Covid19 pandemic. The respondent comprised of 131 taxpayers who operate the small business. Using 22 items questionnaire devised by Braithwaite, a motivated posture (commitment, capitulation, resistance, and disengagement) was assessed, and taken directly from the research on evaluating tax compliance variables. The motivational stances of SMEs in Kelantan and tax compliance were surveyed using a google form questioned via WhatsApp, email, and hardcopy distribution. Statistical Package for the Social Sciences (SPSS) version 26 was used to analyse the data. The data analysis procedure was used to all of the respondent surveys. The results show that commitment, and engagement had a significant impact on tax compliance among SMEs in Kelantan during the pandemic, but not significant for capitulation and resistance. Respondents found it challenging to comprehend the function of the IRB, but they agreed to pay corporate tax properly. The results might be used to advise the IRB on how to boost tax incentives for SMEs, which would increase tax compliance and revenue collection for the government.