<![CDATA[Purpose: This study examines the factors influencing tax compliance among small and medium-sized enterprises (SMEs) in Indonesia, with particular focus on ethical role models, severity of punishment, tax knowledge, and complexity of tax regulations. The study addresses the growing challenges of SME tax compliance in developing economies, where administrative burden, limited taxpayer understanding, and behavioural influences frequently shape compliance behaviour. Methodology/approach: A quantitative research approach was employed using survey questionnaires distributed to SME owners and managers operating in Surabaya. A total of 385 valid responses were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to evaluate both the measurement and structural models. Findings: The findings show that ethical role models, severity of punishment, and tax knowledge positively influence tax compliance, while complexity of tax regulations negatively affects tax compliance. Practical and Theoritical contribution/Originality: The study contributes to tax compliance literature by integrating behavioural and institutional perspectives within the SME context. Practically, the findings provide insights for policymakers and tax authorities in designing simpler tax systems, improving taxpayer education, and strengthening ethical taxation environments to enhance SME tax compliance. Research Limitation: This study is limited by its geographically restricted sample, cross-sectional design, reliance on self-reported responses, and the omission of other factors that may influence tax compliance.]]>
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