The Influence of Tax Service Quality and Tax Rate on Taxpayer Compliance among SMEs in Indonesia

____________________________________________________________ SMEs are a form of community business to support the country's economy during the covid-19 pandemic, SMEs are the most affected businesses. This study aims to determine the level of compliance of SMEs taxpayers in terms of tax rates, quality of fiscal service, and taxpayer self assessment system. The population in this study were SMEs registered at KPP Pratama Cirebon 2. The data analysis method used is descriptive statistics using structural equation model (SEM) analysis. The research results show that there is an effect of tax rate on the self assessment system, quality of tax service on the self assessment system, there is a relationship between tax rate and quality of tax service, there is no effect of the self assessment system on taxpayer compliance, there is no effect of tax rate on taxpayer compliance, there is no influence of fiscal service quality on taxpayer compliance. The hope is that


Introduction
WHO officially announced Covid 19 as a global pandemic on March 19 2020, Covid 19 is an infectious disease caused by the SARS-Cov-2 virus.Covid 19 entered Indonesia estimated in March 2020 (Nurcahyono et al., 2021).Covid 19 impacts the entire structure of human life, both in social, economic, cultural and so on.To deal with this pandemic, the government designed policies to stop the spread of Covid 19.The policies implemented by the government, for example, call for wearing masks, studying and working from home, Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar), vaccination and social distancing.Social distancing is an effort to stop the spread of Covid 19.However, its implementation causes a decrease in economic activity and productivity of business actors, resulting in a decrease in tax revenues.Taxes are the most significant state income compared to, for example, the oil and gas and nonoil and gas sectors (Listiyowati et al., 2021).Revenue from the tax sector in 2021 will reach IDR.1,277.5 Trillion or 103.9%.Taxes have supported 70% of the APBN in the last few years in Indonesia.Taxes are the primary source of income in providing community contributions to the country's economic development (Mir'atusholihah et al., 2014).An increase in revenue proves public awareness of taxes, but in percentage terms, it is still below the target set by the government.
State revenue in 2017 was 1,654.70; in 2018 amounted to 1,928.10; in 2019 1,955.10; in 2020 amounting to 1,698.60; in 2021 it is 1,742.70,while tax revenue in 2017 is 1,343.50; in 2018 1,518.80; in 2019 1,546.10; 2020 1,404.50; in 2021 1,444.50.Based on this data, tax revenue contributes to the largest state revenue.Tax revenue has increased yearly, but in 2020, it experienced a decline due to the Covid-19 pandemic entering Indonesia.Likewise, in 2021, it still experiences the impact of Covid-19 and has decreased compared to 2019, however, it has increased from 2020 (Anyaduba & Oboh, 2019).
In Indonesia, three types of tax collection apply, namely the self-assessment system, the official assessment system, and the withholding assessment system.Before a tax law is drafted, the process always pays attention to issues of theory and principles that are universal and unique, especially those related to the fairness of collection (Sa'diyah & Hariyono, 2022;Sari, 2022).Unlike retribution, which is a form where payments made by individuals can immediately receive back performance, tax collection in its implementation does not provide direct counter-performance, so a particular review is needed to provide arguments to the public about why the state has authority and justice.In tax collection and why people are obliged to pay taxes (Christanty et al., 2023).
With the rapid socio-economic development as a result of national development and globalization as well as reform in various fields and after evaluating developments in the implementation of tax laws so far, especially Law Number 7 of 1983 as last amended, Law Number 10 of 1994 is deemed necessary.To make several substantive changes to improve its function and role to support national development policies, especially in the economic sector (Farhan et al., 2019).The changes to the income tax law in question still adhere to the principles of taxation that are universally adopted, namely fairness, ease/efficiency of administration and productivity of state revenues and still maintain the self-assessment system.Improvements mainly refer to the system and procedures for paying taxes in the current year not to disrupt taxpayers' liquidity in running their business (Parwati et al., 2021).Therefore, the direction and objectives of improving the income tax law are 1) to further increase the fairness of tax imposition, 2) to provide greater convenience to taxpayers, and 3) to support government policy in order to increase direct investment in Indonesia, both foreign investment and direct investment.Domestic capital in specific business fields and specific areas that receive priority.
Since 1984, Indonesia began using a self-assessment system, previously the official assessment system.The self-assessment system is a tax collection system that gives taxpayers the authority to determine the amount of tax owed.This model gives the authority to determine the amount of tax to the taxpayer himself.The taxpayer is active, starting from calculating, depositing and reporting the tax owed himself, and the Fiscus does not interfere and only supervises (Pratiwi et al., 2022).The self-assessment system's success depends on the taxpayer compliance level, especially SMEs taxpayer compliance.The SMEs sector contributes to GDP, namely 61.97% of the total National GDP or the equivalent of IDR.Eight thousand five hundred trillion in 2020, and the SMEs sector also contributes to absorbing many workers, namely 97% of the business world's absorption capacity in 2020.The COVID-19 pandemic also impacts SMEs, namely decreased demand, product marketing, access to raw materials and low levels of human resources (Listiyowati et al., 2021).This made the government issue a stimulus policy so SMEs could survive.The Government's policy in supporting and assisting SMEs taxpayers affected by Covid 19 is one of the incentives for providing government-borne final income tax (DTP), based on PMK No. 44/PMK.03/2020The Indonesian Ministry of Finance fully covers the taxes for SMEs affected by Covid 19.This policy applies from April 2020 to September 2020 (Pratiwi et al., 2022).Then, through the PEN (National Economic Recovery) program, the Minister of Finance explained that the PPH SMEs tax incentives will continue until 2020.2021, and the policy of reducing the value of SMEs tariffs from 1% to 0.5% for SMEs with a turnover below Rp. 4.8 Billion.This policy was implemented to increase SMEs taxpayer compliance in paying taxes to maintain it (Sholehah & Ramayanti, 2022).Taxpayers have been conceptualized from several points of view.Brown and Mazur (2003) Argue that tax compliance is a difficult concept, both theoretically and empirically.They consider three compliance perspectives, namely payment, charging and reporting.Kirchler and Wahl (2010) Emphasize that the challenges of taxpayer compliance research can be easily divided into two categories: conceptualization problems and unclear terminology.
One way to increase taxpayer compliance is to maintain the quality of fiskus services.Taxpayer compliance cannot be separated from the government's role in responding to taxpayers' desires to obtain accessible information and payment services so that public compliance in paying taxes increases (Tarmidi & Novitasari, 2022).Apart from satisfaction with services, public trust in the government and the legal system will encourage taxpayers' willingness to pay taxes to increase if the funds collected from taxes are distributed evenly to finance all state needs and management.This is usually proven by increasing economic growth and public infrastructure that supports the mobility of citizens' lives so that economic, social, cultural and security activities can run smoothly to improve the welfare of citizens in general (Permata & Zahroh, 2022).
The tax rate factor also influences the level of taxpayer compliance.In connection with this, the Government issued a policy of setting a tariff of 1% (one per cent) by issuing Government Regulation No. 46 of 2013 concerning income tax on income from businesses received or obtained by taxpayers with an inevitable gross turnover (Lenggono, 2019;Nurcahyono & Kristiana, 2019).The purpose of implementing this regulation is to provide convenience to taxpayers, especially taxpayers in the SMEs sector, educate the public about orderly administration and contribute to implementing development in the form of taxes.The expected final goal is to increase taxpayer compliance.
Several studies have brought up factors that influence tax obligations, which can be maximized with mediation and mediation variables such as tax knowledge Hawa and Dongoran (2022), tax socialization Safitri and Silalahi (2020), machiavellian ethics Trisnawati et al. (2017) and taxpayer satisfaction Schoeman et al (2022) which has a significant impact on increasing taxpayer awareness.The latest research conducted by Sholehah and Ramayanti (2022) states that if tax socialization is carried out more intensely or regularly, the greater the compliance of SMEs taxpayers in fulfilling their tax obligations.Tax sanctions, if carried out intensively, will increase the compliance of SMEs taxpayers, whereas according to Listiyowati et al. (2021), Tax Socialization does not influence SMEs taxpayer compliance, tax authorities' services have no influence on SMEs taxpayer compliance, the Self Assessment System influences SMEs taxpayer compliance.This research differs from previous research, namely that the author added a self-assessment system variable as a mediator, which is expected to complement previous research.Based on the perspective of empirical research, the function of the self-assessment system as an intermediary factor must be optimized from the psychological side of taxpayers, which is rare and difficult to optimize (Mooij & Liu, 2021;Sandra & Anwar, 2018).
Much extensive research has been conducted on factors influencing tax compliance using various methodologies, including experimental research, surveys, regression modelling and analytical studies.However, the results often prove to be uncertain or mixed, and this shows that further research is still needed, especially involving the Self Assessment System, which still needs to be improved in terms of taxpayer implementation (Schoeman et al., 2022).This research aims to obtain empirical evidence regarding SMEs taxpayer compliance with a self-assessment system which functions as a mediating variable.The self-assessment system as an intermediary variable can become psychological capital in building the mental awareness of taxpayers, of course, by increasing the quality of tax services and tax levels that have a sense of justice.This will have managerial implications for increasing taxpayer compliance so that it can be the best solution for taxpayer awareness.The theoretical implications become empirical proof of whether SAS is an excellent mediating variable in improving taxpayer behaviour.

Hypothesis Development: The influence of the tax rate on SMEs taxpayer compliance
The economic deterrence approach is a concept developed in theories that attempt to explain criminal behaviour.Building on the theory of criminal behaviour and directing it to tax compliance behaviour, Allingham and Sandmo (1972), developed utility theory and assumed that a rational individual considers the possibility of being audited and the penalties associated with fraudulent behaviour.Therefore, a person will consider the possibility of an uncertain outcome and its consequences (Hasan et al., 2020;Zeeshan Hamid, 2012).Changes in VAT rates can influence the decision to register SMEs as taxpayers, so SMEs need to understand tax compliance.Tax compliance, in a broad and operational sense, is when someone is required to register as a taxpayer.Registered taxpayers must also complete and submit their tax returns accurately and on time and then pay the applicable tax obligations in full and on time (Schoeman et al., 2022).SMEs tax rates align with Government Regulation No. 23 of 2018, namely 0.5% of revenue receipts where gross circulation in a year is under 4.8 billion.Simplification of the 1% tax rate is expected to encourage SMEs taxpayers to report their tax obligations.So, the tax rate influences SMEs taxpayer compliance.This is supported by research (Ariyanto & Nuswantara, 2020;Mir'atusholihah et al., 2014).H1: There is an influence of the tax rate on SMEs taxpayer compliance

The influence of tax service quality on SMES taxpayer compliance
The issue of service quality is an essential indicator of the success of any business organization in today's competitive environment.Service quality is an effort to meet customer needs and desires and accurately balance customer expectations.Susuawu et al. (2020) the quality of service for tax authorities in emerging and developing countries is even more critical due to the poor level of tax revenue performance (Amoh & Ali-Nakyea, 2019).
Fiscus services are a way for tax officers to help take care of everything that taxpayers need.Excellent or lousy service quality will give an impression to taxpayers, which will impact decision-making regarding fulfilling their subsequent tax obligations.The quality of tax services proposed by Parasuraman et al. (1985), responsiveness refers to the tax authority's agility in responding to taxpayers' questions and needs.Reliability refers to the ability of the tax authority to provide excellent service to taxpayers reliably and accurately.Assurance involves taxpayers' trust and confidence in the tax authorities to treat them faithfully.When tax authorities make taxpayers' needs a priority and also empathize with them, the quality of empathy will be activated.Tangibility refers to the physical description of services provided by tax authorities to taxpayers, such as physical facilities, tools and machines.Previous research shows that fiskus service quality influences taxpayer compliance (Fuadi & Mangoting, 2013;Ifada et al., 2023;Puspanita et al., 2021).

H2: There is an influence of tax service quality on taxpayer compliance
The mediating role of the self-assessment system on tax rates and SMES taxpayer compliance Self-assessment shifts the task of calculating and reporting taxes to taxpayers.In this scheme, taxpayers complete their SPT with a self-assessment letter and proof of payment to the Tax Authority (Anyaduba & Oboh, 2019).Jacobs (2013) emphasizes that voluntary tax compliance is best achieved through selfassessment.Taxpayer compliance based on the self-assessment system is usually included in the tax laws of each country where taxpayers will calculate their tax obligations, submit evidence to the tax authority based on which they calculated their tax liability, file the return on the legal (due) date; and payment of tax obligations (Jacobs, 2013).SMEs tax rates are regulated by PP Number 23 of 2018, simplifying the tax rate from 1% to 0.5%.The simpler the SMEs tax rates, coupled with the implementation of the Self Assessment System/Taxpayers are given confidence in calculating, remitting and reporting their tax obligations following Article 12 paragraph (1) of the KUP Law; it is hoped that SMEs Taxpayer Compliance will increase.

H3: Assessment system mediates the effect of tax rate and tax compliance on SMEs
The mediating role of the self-assessment system influences the quality of tax services and SMEs taxpayer compliance Fiscus services are how tax officers help, manage and prepare all the needs of a taxpayer (Pratiwi et al., 2022).So, the Fiscus Service has a responsibility that must be carried out to assist taxpayers in managing and preparing all taxpayer needs.Khaerunnisa et al. (2016) Measures taxpayer compliance with three indicators, namely, taxpayers understand and try to understand all tax law provisions, fill out tax forms entirely and clearly, calculate the amount of tax owed correctly and pay taxes on time.The quality of tax authorities can be essential in increasing SMEs taxpayer compliance.Tax authorities services are services provided by tax authorities to taxpayers to help taxpayers fulfil and carry out their tax obligations (Puspanita et al., 2021).The quality of tax service can be assessed based on the perception of SMEs taxpayers by how the services they receive are compared to the services they desire.The better the tax authorities' services, the greater the compliance of SMEs taxpayers (Dewi & Susanto, 2021).With good tax service and the implementation of a self-assessment system, it is hoped that SMEs taxpayer compliance can increase.

Method
This research uses primary data originating from questionnaires distributed to SMEs taxpayers in Cirebon Regency.The population in this study were 114,923 SMEs registered with KPP Cirebon II.The sample in this research used a probability sampling method.The number of samples used in this research was 149 respondents, with an accidental sampling technique based on the respondents met.The data analysis method used is descriptive statistics using the data analysis method used is descriptive statistics using Structural Equation Model (SEM) analysis with the AMOS 26 application, namely multivariate analysis, which is a combination of factor analysis with regression (correlation) analysis, which tests relationships between variables in the model, both between indicators and constructs and relationships between constructs.
The stages of SEM analysis with AMOS are ( 1 3) One way to see whether there is an identification problem is to look at the estimation results.SEM analysis can only be carried out if the model identification results show that the model is included in the over-identified category.This identification is done by looking at the df value of the model created.(4) The measurement model test evaluates the strength of the regression path from a construct to the observed variables or indicators.In other words, researchers want to confirm whether the observed variables used can confirm a factor or construct.This analysis technique is also called Confirmatory Factor Analysis (CFA).Because the measurement model is related to a factor, the analysis carried out is the same as factor analysis; only the author starts by first determining (a priori mode) observed variables, which are seen as indicators of a factor based on previous research.

Result and Discussion
This research uses SMEs taxpayer respondents who are registered at KPP Cirebon II.Research data obtained from respondents consisted of 83 men and 66 women.Furthermore, in terms of age, respondents aged 20-30 years dominated with 82 questionnaires and 67 respondents aged 31 years and over.Apart from that, the majority of educational levels are dominated by high school/vocational school graduates, with 77 respondents, 34 respondents with diplomas, 7 respondents with bachelor's degrees, one respondent with master's degrees and 30 respondents with others.The validity test results in Table 1 above show that the SEM calculation results show an estimated value of > 0.05, which indicates that the statement indicators used are valid.Table 1 that the overall CR results are > 0.07, so that all research indicators are declared reliable and can be continued to the next test.

Discussion
Hypothesis H1 states that the tax rate's effect on taxpayer compliance is not proven.This can be seen from the probability value of 0.010 < 0.05, a significant value.Thus, there is an influence of the tax rate on taxpayer compliance.This follows the utility theory developed by Allingham and Sandmo (1972), which assumes that taxpayers are rational individuals who will consider the risk of tax levels affecting the value of taxes paid.This follows research Schoeman et al. (2022), which suggests that changes in tax rates (direction and magnitude of change) may impact SMEs' decisions to register or cancel registration as taxpayers.Based on utility theory, it is anticipated that when the tax rate is lower and the responsibility is more minor, this will decrease tax avoidance.Most research findings state that more participants will be willing to register as taxpayers if there is a reduction in tax rates, and even more will be willing to register if there is a significant reduction in tax rates.The same thing was also said by Khasanah et al. (2021), who stated that tax administration, especially determining rates, will be a consideration for those obliged to pay taxes.
Hypothesis H2, which states the influence of tax service quality on taxpayer compliance, is proven.This can be seen from the probability value of 0.000 < 0.05, a significant value, which means it has an effect.Thus, there is an influence of the quality of tax service on taxpayer compliance.These results explain that the quality of tax authorities' services positively affects taxpayer compliance.To improve the quality of tax authorities' services, the government is obliged to implement: 1) Responsiveness, tax officials provide fast service, are always willing to support taxpayers with their problems and are quick to respond to taxpayer complaints; 2) Reliability, tax officials are consistent and reliable in the delivery of taxpayer services, their work is accurate, transactions are timely and provide information to taxpayers following new tax laws and services; 3) Certainty, building trust and confidence in taxpayers and making taxpayers feel safe when making tax transactions; 4) Empathy, prioritizing the interests of taxpayers and giving full attention to taxpayers, having a polite and cheerful nature when dealing with taxpayers (Kristianingrum et al., 2022;Noviyani & Muid, 2019;Prihanto, 2020;Susuawu et al., 2020).
Hypothesis H3 in this research is that the self-assessment system mediates the effect of the tax rate on taxpayer compliance.The self-assessment system cannot mediate the tax rate with taxpayer compliance.The justification that can explain the absence of mediation or interaction between the self-assessment system and the tax rate on taxpayer compliance is that many SMEs taxpayers still do not understand the self-assessment system, so socialization and literacy are needed for SMEs.The self-assessment system transfers the task of independently calculating and reporting taxes to taxpayers.The government is trying to introduce taxpayers to filling in SPT by submitting a self-assessment letter and proof of payment to the tax authority (Anyaduba & Oboh, 2019).Fuadi and Mangoting (2013) voluntary taxpayer compliance is ideal by carrying out an independent taxpayer assessment.For this purpose, Jacobs (2013) reports that there are three aspects of tax assessment and determination of tax obligations that need to be considered: (1) tax withholding, (2) government assessment, and (3) self-assessment scheme.Taxpayer compliance based on the Self Assessment System is usually included in the tax laws of each country where taxpayers will calculate their tax obligations, submit evidence to the tax authority based on which they calculated their tax liability, file the return on the legal (due) date; and payment of tax obligations (Jacobs, 2013).
Hypothesis H4 in this research is that the Self Assessment System mediates the influence of Fiscus Service Quality on Taxpayer Compliance.The Self Assessment System cannot mediate the Quality of Fiscus Services on Taxpayer Compliance.The justification that can explain the absence of mediation or interaction between the Self-Assessment System and the Quality of Fiscus Services regarding SMEs Taxpayer Compliance is the finding in the field that SMEs Taxpayers want to be helped/guided from Calculation, Payment to Tax Reporting (Kurniawati et al., 2021;Sa'diyah & Hariyono, 2022).By establishing good quality tax services, SMEs have the awareness to carry out a self-assessment system to meet tax obligations.This is a challenge for the government in responding to taxpayers' desires to obtain accessible information and services in payments so that people's compliance in paying taxes independently increases.The government is also obliged to build public trust in how the self-assessment system can provide convenience, of course, with the convenience of the taxpayer-filling feature so that it is easy for taxpayers to use.The government is also obliged to provide evidence of increased economic growth and public infrastructure that supports the mobility of citizens' lives so that economic, social, cultural and security activities can run smoothly (Permata & Zahroh, 2022); thus, it is hoped that this will trigger satisfaction with tax distribution and have an impact on taxpayer awareness in carrying out tax reporting independently.This is following the statement Sholehah and Ramayanti (2022), which states that if the socialization of self-charging taxes is carried out more intensively, it will have a significant impact on the compliance of SMEs taxpayers in fulfilling tax obligations and law enforcement in the form of tax sanctions if carried out intensively it will also increase SMEs taxpayer compliance.

Conclusion and Recommendation
The research explains the positive influence of the tax on the self-assessment system and the positive influence of the Quality of Fiscus Services on taxpayer compliance.The research found that the selfassessment system must mediate the tax rate and the quality of tax authorities' services to increase SMEs taxpayer compliance.Tax rates and services become meaningless when taxpayers do not trust tax institutions, especially SMEs taxpayers who still need clarification about the self-assessment system.Hence, they need guidance and guidance from tax institutions.The Government must pay attention to this image of trust and justice if it expects the public to have high levels of taxpayer compliance.Theoretical implications explain that the tax rate and tax service services are important factors in increasing taxpayer compliance.Taxpayers are finally trapped in the theory of criminal behaviour, which directs them to tax compliance behaviour Allingham and Sandmo (1972), then put forward the utility theory and assume that individuals Rational individuals are individuals who consider the possibility of being investigated and punished for fraudulent behaviour.So, when filling out SPT independently, someone will consider the possibility of uncertain results and their consequences, which is perceived to be more risky (Hamid, 2013).For further research, it is necessary to explore the role of tax justice and tax trust as mediating factors.This follows utility theory, which takes into account risk factors and changes received by taxpayers.When the tax rate changes to a higher direction and fiscus services decrease, taxpayers will avoid it, including carrying out a self-assessment system; they want to avoid self-charging.
In general, this research provides an accurate view that the condition of society is not yet concerned with the self-assessment system, so the Government must work hard in providing intensive tax outreach and assistance as well as evaluating tax allocations that have real value and benefits for the wider community, especially SMEs.
) describing the research framework in a flow diagram (path diagram).AMOS has developed the existing conventions in drawing flowcharts, so use them.Convert the flow diagram into structural and measurement model equations.(2) Measure the feasibility of the indicators used in the research with a GFI value <0.80.(

Table 1 .
Validity and Reliability Results