The Impact of Tax Knowledge on the Compliance Rates of MSME Café Taxpayers in Tondano

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FORMOSA NEWS - Manado - Technical Barriers Limit Tax Compliance for Cafe Owners in Tondano, Study Finds. Café owners in Tondano possess a strong understanding of fundamental tax functions but struggle with technical execution, self-assessment procedures, and digital filing platforms. The research was conducted by Abigail Eunike, Treesje Runtu, and Christian Datu from Universitas Sam Ratulangi. Published in July 2026, the study underscores that while business owners demonstrate strong civic intentions to support local development, gaps in technical tax literacy directly impact their long-term compliance consistency.

Background and Context
Micro, Small, and Medium Enterprises (MSMEs) serve as a vital backbone for Indonesia's economic stability by creating employment, driving local development, and boosting regional revenues. In Minahasa Regency, particularly across West, East, and South Tondano, the culinary industry has experienced significant growth through the proliferation of coffee shops and cafés. Under Indonesian regulations, such as Government Regulation Number 23 of 2018 and Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD), these businesses are subject to relevant national income taxes and local restaurant taxes capped at 10%. Despite national efforts to simplify reporting through the Tax Harmonies Law (UU HPP), non-compliance remains higher among small entrepreneurs compared to corporate taxpayers. In small culinary hubs like Tondano, business owners often face administrative confusion regarding revenue thresholds, local restaurant taxes (PBJT), and digital filing requirements. Addressing this gap is critical for local governments seeking to optimize Regional Original Income (PAD) while protecting small business operations.

Research Methodology
The researchers adopted a qualitative approach utilizing descriptive analysis to investigate tax knowledge and compliance behavior among local entrepreneurs. The study focused on MSME cafés in Tondano, Minahasa Regency, between November 2025 and mid-2026.

• Sampling Method: Purposive sampling was applied to select 10 café enterprises out of a total population of 23. Selected participants were required to hold a Taxpayer Identification Number (NPWP) and serve as owners or operational managers.
  
• Data Collection: Information was gathered through structured questionnaires, in-depth interviews, direct field observation, and official documentation from the Minahasa Regional Revenue Office.
  
• Analytical Approach: The collected data underwent data reduction, systematic presentation using SPSS to verify validity and reliability, descriptive narrative mapping, and qualitative conclusion drawing.
  

Key Findings

The study revealed a distinct division between basic tax awareness and practical technical ability among café owners in Tondano.

• High Awareness of Tax Purpose: A strong majority of respondents (80%) understood that tax payments fund public infrastructure, general government services, and regional economic stability.
  
• High Formal Registration: Formal compliance at the entry level is strong, with 80% of taxpayers agreeing on the importance of holding an NPWP and 90% expressing a commitment to accurate reporting deadlines.
  
• Uncertainty Over Self-Assessment: A majority (60%) of respondents expressed neutral responses regarding the self-assessment system, signaling widespread confusion about independently calculating, paying, and reporting tax liabilities.
  
• Digital Adaptation Hesitancy: Half of the surveyed business owners (50%) expressed neutrality or hesitation regarding digital services like DJP Online and electronic payment systems, citing a need for hands-on guidance.
  
• Economic Volatility: While taxpayers understand penalties and sanctions, unstable cash flows in smaller operations frequently cause temporary delays in tax payments.
  

Real-World Impact and Policy Implications
The findings offer actionable insights for tax authorities, local governments, and small business advocates. To transform general tax awareness into sustained compliance, fiscal policy must move beyond punitive measures toward active technical support.

• Targeted Technical Assistance: Regional tax offices should offer practical workshops focusing specifically on digital reporting tools, simplified bookkeeping, and self-assessment steps rather than general public relations campaigns.
  
• Business Credibility: Demonstrating tax compliance enhances business reputation and opens doors for formal credit access, legal protections, and business development incentives.
  
• Optimized Regional Revenue: Helping small culinary businesses overcome administrative barriers enables local municipalities to build a more predictable tax base to fund infrastructure projects.
  

Author Profiles
Abigail Eunike, S.Ak.: Researcher at Universitas Sam Ratulangi, specializing in accounting, micro-enterprise taxation, and tax compliance behavior.
Treesje Runtu, SE., M.Si., Ak., CA: Academic lecturer and researcher at Universitas Sam Ratulangi, specializing in financial accounting, public sector taxation, and financial reporting systems.
Christian Datu, SE., M.Si.: Academic lecturer and researcher at Universitas Sam Ratulangi, expert in managerial accounting, tax policy, and regional economic development.

Source
Abigail Eunike, Treesje Runtu, Christian Datu. Dampak Pengetahuan Perpajakan terhadap Tingkat Kepatuhan Wajib Pajak UMKM Café di Tondano. Formosa Journal of Applied Sciences (FJAS). Vol. 5, No. 7, Tahun 2026, Hal. 1567-1584
DOI: https://doi.org/10.55927/fjas.v5i7.87
URL: https://journalfjas.my.id/index.php/fjas