Abstract
This study aims to analyze the influence of tax literacy, motivation to pay taxes, and understanding of digital taxation on taxpayer compliance (a case study of MSME operators in South Tangerang). Taxpayer compliance is a crucial factor in optimizing state revenue, particularly from the Micro, Small, and Medium Enterprise (MSME) sector. Data for this study were collected by distributing questionnaires to business operators. Using a purposive sampling method, a final sample of 117 valid and usable respondents was obtained. The data analysis technique employed was Multiple Linear Regression using SPSS software version 26. The results indicate that tax literacy, motivation to pay taxes, and understanding of digital taxation simultaneously have a significant effect on taxpayer compliance. Individually, all three independent variables have a positive and significant impact on taxpayer compliance, with the understanding of digital taxation exerting the most dominant influence. The study's implications suggest that MSME compliance levels will be optimized when supported by a synergy of solid tax knowledge, strong internal moral motivation, and proficiency in operating modern digital tax administration systems.
