TAX INNOVATION, DIGITAL PAYMENT SYSTEMS, AND FINANCIAL SUSTAINABILITY OF MSMES: TAX COMPLIANCE AS MEDIATING
DOI:
https://doi.org/10.23969/jrak.v18i1.43213Keywords:
financial performance, financial sustainability, MSME, payment system digitalization, tax compliance, tax innovationAbstract
Formally registered MSMEs in Indonesia face growing fiscal and technological pressures that may affect their financial performance and long-term sustainability. This study aims to examine how tax innovation and payment system digitalization influence financial performance and financial sustainability through tax compliance. Using an explanatory quantitative design, data were collected from 455 formal MSMEs through a structured questionnaire and analyzed using SEM-PLS. The findings show that tax compliance significantly improves financial performance and financial sustainability and partially mediates the effects of tax innovation and digital payment systems. In addition, tax innovation and digital payment adoption directly strengthen compliance and contribute positively to financial outcomes. These results indicate that sustainable MSME finance depends not only on operational efficiency but also on institutional adaptation and compliant fiscal behavior. This study contributes to MSME taxation literature by integrating agency and institutional perspectives to explain the role of compliance in strengthening financial sustainability.
Downloads
References
Abiola, O., & Fola, A. (2024). Tax compliance and its determinants: A study on small and medium enterprises (SMEs). International Journal, 1(1), 16–20. https://doi.org/https://doi.org/10.61132/ijema.v1i1.319
Aditya, C. (2020). The presumptive tax regime on micro, small and medium enterprises in Indonesia. Syntax Literate, 5(6), 50–63. https://doi.org/https://doi.org/10.36418/syntax-literate.v5i6.1323
Anindya, P. (2025). Tax Avoidance dan Kebijakan Pencegahannya Dalam Hukum Formal Perpajakan Di Indonesia. Widya Yuridika, 8, 501–516. https://doi.org/https://doi.org/10.31328/wy.v8i2.6654
Azhari, A. O., & Prabawati, I. (2023). Efektivitas Penerapan Perpajakan Pada Pelaku Usaha Mikro Kecil dan Menengah (Studi pada Umkm di Kantor Pelayanan Pajak Pratama Surabaya Gubeng). Publika, 1529–1538. https://doi.org/https://doi.org/10.26740/publika.v11n1.p1529-1538
Biru, A. M. (2020). Factors That Affect Tax Compliance Behavior of Small and Medium Enterprises: Evidence from Nekemte City. European Journal of Business and Management, 12(19), 29–41.
da Silva, T. F., da Silva Pereira, V., & de Brito, Z. M. (2024). Sustentabilidade financeira em pequenas e médias empresas: desafios e estratégias contábeis. Revista Acadêmica Online, 10(52), e217–e217. https://doi.org/https://doi.org/10.36238/2359-5787.2024.v10n52.217
Darmayasa, I. N., Utami, N. W. D. W., & Mandia, I. N. (2021). The embodiment of voluntary compliance through understanding of MSMEs tax compliance perception. Assets: Jurnal Akuntansi Dan Pendidikan, 10(1), 63–72. https://doi.org/https://doi.org/10.25273/jap.v10i1.7129
De Vito, A., & Grossetti, F. (2024). Exploring Tax Avoidance: A Synthesis of the Literature. Tax Avoidance Research, 5–31. https://doi.org/https://doi.org/10.1007/978-3-031-51765-5_2
Dwifanty, D. J., Leobisa, J. N., Bernoli, A. A., & Dima, E. T. Y. (2025). Kontribusi UMKM Terhadap Perekonomian Indonesia Serta Peluang dan Tantangan dalam Era Digitalisasi. Akuntansi Dan Ekonomi Pajak: Perspektif Global, 2(3), 71–78. https://doi.org/https://doi.org/10.61132/aeppg.v2i3.1357
Granfon, J. A., Lagare, W. N. J. D., Aling, D. A., Dangcalan, N. B. D., & Ebanay, A. A. (2023). Factors Affecting Tax Compliance of MSMEs in Dipolog City. International Journal of Multidisciplinary: Applied Business and Education Research, 4(4), 1350–1364. https://doi.org/https://doi.org/10.11594/ijmaber.04.04.29
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., Ray, S., Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). Evaluation of formative measurement models. Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook, 91–113. https://doi.org/https://doi.org/10.1007/978-3-030-80519-7
Hardani, H., Medica, P., Husada, F., Andriani, H., Sukmana, D. J., & Mada, U. G. (2020). Buku Metode Penelitian Kualitatif & Kuantitatif.
Henriette, G., & Erasashanti, A. P. (2023). Analisis Pengaruh Insentif Pajak, Tingkat Pendapatan, Dan Digitalisasi Terhadap Kepatuhan Wajib Pajak Umkm Di Era Pandemi Covid-19:(Studi Kasus Wajib Pajak UMKM Wilayah Jakarta Timur). Jurnal Maneksi (Management Ekonomi Dan Akuntansi), 12(3), 573–580. https://doi.org/https://doi.org/10.31959/jm.v12i3.1740
Hossain, M., Lobo, G. J., & Mitra, S. (2022). Tax avoidance and corporate investments. Review of Pacific Basin Financial Markets and Policies, 25(02), 2250013. https://doi.org/https://doi.org/10.1142/S0219091522500138
Ilyas, R. (2024). The Potential Application of Digitalization and Economic Growth of Micro, Small, and Medium Enterprises. https://doi.org/http://dx.doi.org/10.4108/eai.21-10-2023.2343526
Jeandry, G. (2023). Perceptions of Tax Corruption, Quality of Fiscus Service, Organizational Climate, Attitude of Fiscus, Taxpayer’s Motivation and Taxpayer Compliance. International Journal of Accounting & Finance in Asia Pasific (IJAFAP), 6(2), 120–132.
Judijanto, L. (2024). Strategy to Increase Tax Revenue to Capture Digital Economy Growth Opportunities in Indonesia. 1(4), 95–106.
Kurniawan, -, Maulana, A., & Iskandar, Y. (2023). The Effect of Technology Adaptation and Government Financial Support on Sustainable Performance of MSMEs during the COVID-19 Pandemic. Cogent Business & Management, 10(1), 2177400. https://doi.org/https://doi.org/10.1080/23311975.2023.2177400
Maswin, M., & Sudrajad, O. Y. (2023). Analysis of Financial Indicator Literacy Determinants on The Performance of Bandung City SMEs. International Journal of Current Science Research and Review, 06(06), 3792–3804. https://doi.org/10.47191/ijcsrr/v6-i6-68
Mulyati, C., Meiden, C., & Dema, Y. (2025). The Influence Of Firm Financial Performance On Tax Avoidance: A Meta-Analysis Study. International Journal of Social Science, 5, 179–190. https://doi.org/https://doi.org/10.53625/ijss.v5i2.10998
Muttaqin, I., Risnawati, H., & Wahyuningsih, P. (2025). Meningkatkan Kepatuhan Pajak: Peran Sistem Administrasi Pajak Digital, Persepsi Anti Korupsi, Dan Pengeluaran Pemerintah. Jurnal Ilmiah Fokus Ekonomi, Manajemen, Bisnis & Akuntansi (EMBA), 4(2), 137–148. https://doi.org/https://doi.org/10.34152/emba.v4i2.1498
Nurchayati, N., Ariyanti, R., & Marianingsih, I. (2024). How fintech adoption, digital payment systems, and consumer trust shape financial performance of MSMEs. International Journal of Business, Law, and Education, 5(2), 2458–2469. https://doi.org/https://doi.org/10.56442/ijble.v5i2.895
Polo Orellana, F., Diaz Urbano, R. V., Ramos Aylas, C. D., & Richard Meza Diaz, J. J. (2025). Digital Innovation In The Financial Management Of Smes: A Literature Review. Lex Localis: Journal of Local Self-Government, 23. https://doi.org/https://doi.org/10.52152/801392
Safitri, N., & Dinana, A. (2025). MSMEs as the Backbone of the Economy: Optimizing Potential and Facing Various Challenges. Public Service: Jurnal Ilmu Sosial Dan Pendidikan, 2(1), 28–38. https://doi.org/https://doi.org/10.61166/service.v2i1.10
Saka, C., Oshika, T., & Jimichi, M. (2019). Does tax avoidance diminish firms’ sustainability? Journal Global Policy and Governance, 8(2), 95–114. https://doi.org/https://doi.org/10.14666/2194-7759-8-2-005
San, S., Wan, N. Z. N., Razak, S., Saidi, N., Abdullah, A., Aziz, A., Hussin, S. N. A., Tumiran, S. D., & Nasser, K. (2023). Potential Factors Motivating Tax Compliance Among Small And Medium-Sized Enterprises (SMEs). Adv. Int. J. Business, Entrep. SMEs, 5, 56–65.
Saptono, P. B., Khozen, I., Mahmud, G., Hodžić, S., Pratiwi, I., Purwanto, D., & Imantoro, L. W. (2024). Flourishing MSMEs: The role of innovation, creative compliance, and tax incentives. Journal of Risk and Financial Management, 17(12), 532. https://doi.org/https://doi.org/10.3390/jrfm17120532
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. Handbook of Market Research, 587–632. https://doi.org/https://doi.org/10.1007/978-3-319-05542-8_15-2
Satyadini, A., & Rosid, A. (2024). Does tax simplification motivate small businesses to be more compliant? Evidence from a regression discontinuity in Indonesia. Bulletin of Indonesian Economic Studies, 60(2), 217–238. https://doi.org/https://doi.org/10.1080/00074918.2023.2252746
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. john wiley & sons.
Sofianti, E. (2023). Pengaruh Kepatuhan Pajak Terhadap Peningkatan Omzet Umkm Terkurasi Dinas Kebudayaan Dan Pariwisata Kabupaten Bogor. Journal Publicuho, 6(4), 1465–1477. https://doi.org/https://doi.org/10.35817/publicuho.v6i4.296
Wahyudi, A. S., Yulivan, I., & Rahman, A. (2024). The role of micro, small, and medium enterprises (MSMEs) in supporting Indonesia’s economic resilience. Jurnal Pertahanan: Media Informasi Tentang Kajian Dan Strategi Pertahanan Yang Mengedepankan Identity, Nasionalism Dan Integrity, 10(2), 297–307. https://doi.org/https://doi.org/10.33172/jp.v10i2.19519
Wijanarko, K. N., & Saraswati, E. (2024). Pengaruh insentif pajak, sistem perpajakan digital, dan digitalisasi bisnis terhadap peningkatan kepatuhan pajak UMKM di era new normal. Telaah Ilmiah Akuntansi Dan Perpajakan, 2(4), 714–728. https://doi.org/https://doi.org/10.21776/tiara.2024.2.4.52
Wijaya, S., Nurhastuti, S., Hanifah, D., Ramadhan, R., Chalista, A., Luthfianti, N., & Sulastri, H. (2025). The knowledge advantage: Revolutionizing tax compliance in the MSME sector. Educoretax, 5, 336–351. https://doi.org/https://doi.org/10.54957/educoretax.v5i3.1427
Zuhroh, D., Jermias, J., Ratnasari, S. L., Sriyono, Nurjanah, E., & Fahlevi, M. (2025). The impact of sharing economy platforms, management accounting systems, and demographic factors on financial performance: Exploring the role of formal and informal education in MSMEs. Journal of Open Innovation: Technology, Market, and Complexity, 11(1). https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100447
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Heliani, Nurul Rusdiansyah
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
