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Taxes are essential in protecting the infrastructure as a great portion of government spending comes from taxes. Understandably, factors like taxpayers’ religiosity, tax amnesty, and tax sanctions have a bearing on taxpayer compliance, an important aspect if the optimal tax required for financing infrastructure is to be maintained. This study seeks to determine how taxpayer religiosity, tax amnesty, and tax sanction influence tax compliance of micro, small and medium enterprises (MSMEs) in Indonesia. A quantitative research method was applying using several liner regression analyses, with three variables as independent focusing on taxpayer religiosity (X1), tax amnesty (X2), tax-sanction (X3), and one dependent variable taxpayer compliance (Y). The research was within MSMEs, and a random sampling technique was used in drawing the sample. Questionnaires were used to elicit primary data while secondary data was collected through literature reviews such as journals, books, and other published materials. The two tests were ascertained and the hypothesized constructs were tested using SEM techniques within SmartPLS. The results of this research show that, 1) Taxpayer Religiosity has a positive and significant effect on Taxpayer Compliance of MSMES in Indonesia. 2) Tax amnesty has a great impact on taxpayer compliance amongst MSMEs in Indonesia. 3) Tax sanction significantly affects taxpayer compliance amongst MSMEs in Indonesia. The research shows that taxpayer religious beliefs, tax amnesty, and tax sanction leads to high levels of tax compliance amongst the MSME sector in Indonesia. It aids in the formulation of necessary moves by the concerned authorities that would in one way or the other address the issue of compliance among the MSMEs.

Taxes are essential in protecting the infrastructure as a great portion of government spending comes from taxes. Understandably, factors like taxpayers’ religiosity, tax amnesty, and tax sanctions have a bearing on taxpayer compliance, an important aspect if the optimal tax required for financing infrastructure is to be maintained. This study seeks to determine how taxpayer religiosity, tax amnesty, and tax sanction influence tax compliance of micro, small and medium enterprises (MSMEs) in Indonesia. A quantitative research method was applying using several liner regression analyses, with three variables as independent focusing on taxpayer religiosity (X1), tax amnesty (X2), tax-sanction (X3), and one dependent variable taxpayer compliance (Y). The research was within MSMEs, and a random sampling technique was used in drawing the sample. Questionnaires were used to elicit primary data while secondary data was collected through literature reviews such as journals, books, and other published materials. The two tests were ascertained and the hypothesized constructs were tested using SEM techniques within SmartPLS. The results of this research show that, 1) Taxpayer Religiosity has a positive and significant effect on Taxpayer Compliance of MSMES in Indonesia. 2) Tax amnesty has a great impact on taxpayer compliance amongst MSMEs in Indonesia. 3) Tax sanction significantly affects taxpayer compliance amongst MSMEs in Indonesia. The research shows that taxpayer religious beliefs, tax amnesty, and tax sanction leads to high levels of tax compliance amongst the MSME sector in Indonesia. It aids in the formulation of necessary moves by the concerned authorities that would in one way or the other address the issue of compliance among the MSMEs.