Enhancing MSME Tax Compliance: The Moderating Role Of Technology Readiness On The Impact Of Coretax Ease Of Use

Abstract

This study examines the effect of Core Tax ease of use on tax compliance among Micro, Small, and Medium Enterprises (MSMEs) and investigates the moderating role of technology readiness. Grounded in the Technology Acceptance Model (TAM) and the Technology Readiness Index (TRI), the study employs a quantitative approach using survey data collected from 100 MSME taxpayers registered at the North Badung Primary Tax Office. The data were analyzed using simple linear regression and moderated regression analysis. The findings indicate that Core Tax ease of use has a positive and significant effect on MSME tax compliance, suggesting that a user-friendly digital tax system reduces administrative burden and encourages voluntary compliance. Furthermore, technology readiness significantly strengthens the relationship between Core Tax ease of use and tax compliance, highlighting the importance of taxpayers’ technological preparedness in maximizing the benefits of system usability. This study contributes to digital taxation literature by integrating system usability and user readiness factors and provides practical implications for enhancing MSME tax compliance through improved digital system design and technology readiness programs.