<![CDATA[The development of MSME businesses often encourages companies to expand cooperation with transaction partners that require Pengusaha Kena Pajak (PKP) status. This status transition introduces more complex tax obligations, including the issuance of tax invoices, Value Added Tax (VAT) recording, VAT Periodic Return reporting, and more structured tax administration management. However, many MSMEs still rely on simple administrative and bookkeeping systems and lack dedicated human resources (HR) in accounting and taxation, creating various potential tax risks. This study aimed to analyze tax risk management in the plan to transition to PKP status at CV Damaian Mandiri Abadi. A qualitative approach using a case study method was employed. Data were collected through semi-structured interviews with the company owner, direct observations of administrative and bookkeeping processes, and documentation of relevant records and tax regulations. The findings revealed that the company faced several potential tax risks, including transaction recording errors, incorrect tax invoice issuance, delayed tax reporting, inaccurate VAT Periodic Returns, and potential administrative sanctions. In addition, the company’s administrative systems, bookkeeping practices, and human resource readiness remained suboptimal. Tax risk management strategies included improving administrative and bookkeeping systems, enhancing tax knowledge and HR competence, strengthening document archiving procedures, and preparing more structured tax administration before transitioning to PKP status. This study concluded that administrative readiness, bookkeeping quality, and human resource competence were key factors in minimizing tax risks before an MSME transitions to PKP status. The findings contributed to the literature on MSME taxation and provided practical guidance for business owners preparing for PKP status.]]>
