Tax literacy improvement through NPWP and tax regulation socialization for MSMEs in Bumi Jaya village

Abstract

Tax knowledge is an essential aspect, particularly for small and medium enterprises (SMEs). The socialization of the Taxpayer Identification Number (known as NPWP) literacy is a crucial step in supporting the growth of SMEs in Bumi Jaya Village, Tanah Laut. This community service aims to enhance the understanding of SMEs regarding the importance of the NPWP in business management and tax obligations, as well as the online registration process. The method used is a participatory approach, involving local stakeholders such as the village governance and the SMEs community. The socialization results indicate that SMEs comprehend the process of online NPWP registration. Based on the implementation of this community service, it can be concluded that the program successfully increased tax literacy among SMEs, particularly regarding the understanding of NPWP, its functions, and registration procedures. This success highlights that targeted tax education can positively impact public awareness of tax obligations. SMEs now have a better understanding of the importance of NPWP for business operations, which is expected to encourage greater tax compliance and support structured business growth. However, an active role from the Tax Service Office is still needed to intensively disseminate information, especially considering ongoing changes in tax regulations. Future socialization efforts should also cover aspects such as tax calculation, annual tax return (SPT) reporting, and available tax facilities for SMEs, aiming for improved compliance and contribution to national economic development