PERAN PENGETAHUAN PERPAJAKAN TERHADAP KEUNGGULAN BERSAING UMKM KREATIF DI DAERAH ISTIMEWA YOGYAKARTA MELALUI PERTUMBUHAN USAHA

Abstract

Tax revenues from MSMEs only contribute around 5% of the total tax revenue amounting to Rp1,315.9 trillion in 2018. Tax regulations that are strictly enforced force MSMEs to comply. MSMEs that comply with paying taxes have been balanced by providing various facilities that have an impact on the opening of opportunities for MSMEs to increase their business growth. Good business growth will produce competitive advantage. This study aims to analyze the effect of tax literacy on competitive advantage through the growth of MSME businesses. This study uses data from 269 Creative MSMEs in Yogyakarta. The statistical tool used in this study is Partial Least Square. The results of the study found that tax literacy had a positive and significant effect on business growth. This is indicated by the path coefficient of 0.727, the value of t count of 12.606, and the significance of 0.000. The results of the study also found that business growth and competitive advantage had the results of path coefficient statistics of 0.645, the value of t count was 10.375, and the significance of 0.0000. This means that business growth has a positive and significant influence on competitive advantage in Creative MSMEs in Yogyakarta. Another finding in this study was the business growth mediating the influence of tax literacy on competitive advantage in Creative MSMEs in Yogyakarta. This is shown in the results of the path coefficient of 0.469, with z count of 8.011 and significance of 0.000. The results of this study are expected to open the horizons of Creative MSMEs in Yogyakarta on the importance of understanding tax literacy in achieving sustainable competitive advantage