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ABSTRACT:

Small, and Medium Enterprises(SMEs) play a crucial role in the national economy. The stability of the economy can be maintained through the tax compliance, which contributes significantly to economic stability. This study aims to examine the impact of tax morale and tax rates on tax compliance. Additionally, it investigates the role of taxpayer intention as a mediator between tax morale and tax rates on tax compliance. The research involved 100 SMEs respondents in the DKI Jakarta area and employed quantitative analysis using Smart-PLS as the analytical tool. The results show that tax morale significantly influences both tax intention and tax compliance. However, tax rates do not have a significant impact on tax intention or tax compliance. The role of intention as a mediating variable partially mediates the effect of tax morale on tax compliance, while intention does not mediate the effect of tax rates on tax compliance. This study contributes additional literature on tax compliance and provides practical insights for tax authorities, emphasizing the need to enhance tax morale through effective tax education to motivate taxpayers to fulfill their tax obligations.

KEYWORDS:

tax morale, tax compliance, intention

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