Potential Corporate Income Tax of Micro Small Medium Enterprises of Leather Industry in Garut

Abstract

Taxes are a major source of revenue for the state to finance government spending and construction. In order to increase tax revenue, the Directorate General of Taxes expands the subjects and objects of taxation. One subject of the tax is the Micro, Small, and Medium Business. Its development from year to year has increased but until now the Micro, Small and Medium Enterprises has not been the subject of overall tax because most Micro, Small and Medium Enterprises are informal. The safety net for the taxpayer in the form of Tax Payer Registration Number enacted but there are still many small and medium businesses free from of tax. This study is aimed to describe the potential income tax (pph) weight in the Micro, Small, and Medium Enterprises of Leather Industry in Garut and analyzes the factors that drive the business into a formal or legal status. This study analyzed the factors by using logic regression with qualitative data from interview process and surveys. Mechanical determine the sample using a sampling formula with a total of 80 samples.