Research Article
The Impact of Tax Incentives on MSMEs Survivability During Covid-19 Pandemic: Case Study in Semarang City
@INPROCEEDINGS{10.4108/eai.27-7-2021.2316780, author={Ain Hajawiyah and Trisni Suryarini and Kiswanto Kiswanto and Atta Putra Harjanto}, title={The Impact of Tax Incentives on MSMEs Survivability During Covid-19 Pandemic: Case Study in Semarang City}, proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2022}, month={3}, keywords={tax incentives covid-19 pandemic msmes}, doi={10.4108/eai.27-7-2021.2316780} }- Ain Hajawiyah
Trisni Suryarini
Kiswanto Kiswanto
Atta Putra Harjanto
Year: 2022
The Impact of Tax Incentives on MSMEs Survivability During Covid-19 Pandemic: Case Study in Semarang City
ICE-BEES
EAI
DOI: 10.4108/eai.27-7-2021.2316780
Abstract
The impact of the COVID-19 pandemic is quite significant, including on the economy. To reduce the adverse effects on the economy, the government issued tax incentives. This tax incentive is a stimulus to help the community, especially taxpayers, survive and boost economic growth, which slumped due to the pandemic. This study aims to determine the effect of pandemic tax incentives on the survival ability of MSMEs during a pandemic. This study uses primary data obtained through a questionnaire survey of MSMEs in Semarang City, Central Java, Indonesia. The data was then processed using multiple regression with the help of SPSS software. The study results indicate that tax incentives knowledge does not affect the survivability of MSMEs. The result also shows that the tax incentives utilization affects MSMEs survivability. Tax incentives knowledge does not affect the MSMEs survivability because, during the pandemic, MSMEs experienced a decline in turnover and profits. The taxes also paid fell or even zero. MSME actors need other direct assistance, such as Direct Cash Assistance / Assistance for Micro Business Actors, free electricity assistance, and credit restructuring.