Existing literature has showed that regulatory requirements on business often fall heavily on small medium enterprise (SMEs). Indonesian SMEs, as SMEs various countries, play a significant role in the national economy. This paper was intended to reveal the determinant factors influencing tax compliance of SMEs with annual sales ranging from IDR 600 million up to IDR 4.8 billion (around USD 352,000 with the exchange rate at the time when the research was undertaken) in Indonesia. Six tax compliance factors were examined using multiple regressions, namely the perception of tax rate, referral groups, probability of being audited, tax knowledge, perception of government spending, and perception of equity and fairness. From 328 respondents, who are retailers, the results show that the referral groups, probability of being audited, tax knowledge and the perception of equity and fairness have a significant impact on tax compliance. The referral group, however, has a most significant influence even though the level of referral group varies significantly among respondents.

Tax Compliance, SMEs, Retailers

• Fany Inasius, M.M., M.B.A., BKP., CA., Ak., ACPA

• Ekawati Rini Lestari, S.Sos., M.M.

• Giri Darijanto Sugiono, S.E., M.M., BKP