<![CDATA[General Background: Taxation is the primary state revenue source for national development and economic stability. Specific Background: Despite digital administration modernization via the CoreTax system and fiscal incentives for Micro, Small, and Medium Enterprises (MSMEs), taxpayer compliance in this sector remains low. Knowledge Gap: Prior studies examining the relationships of tax understanding, tax sanctions, and CoreTax implementation with MSME taxpayer compliance have shown inconsistent results. Aims: This study analyzes the relationships of tax understanding, tax sanctions, and CoreTax implementation with MSME taxpayer compliance, using taxpayer awareness as a moderating variable. Results: Based on a quantitative survey of 56 registered cracker MSME owners in Tlasih Village, Sidoarjo, analyzed using PLS-SEM via SmartPLS, findings indicate that tax understanding and tax sanctions positively and significantly relate to taxpayer compliance, whereas CoreTax implementation has no significant relationship. Additionally, taxpayer awareness strengthens the relationship between tax understanding and taxpayer compliance, but does not moderate tax sanctions or CoreTax implementation. Novelty: This research integrates the newly implemented CoreTax system variable with moderating taxpayer awareness within home-industry cracker MSMEs. Implications: The Directorate General of Taxes should intensify digital socialization, technical assistance, and consistent sanction enforcement to optimize MSME fiscal obligations. Highlights: Regulatory knowledge and strict administrative penalties positively foster fiscal discipline among small business owners. Digital administration system adoption fails to directly generate voluntary reporting due to limited technical literacy. Voluntary moral responsibility strengthens the connection between regulatory knowledge and actual fiscal fulfillment. Keywords: Tax Understanding, Tax Sanctions, CoreTax Implementation, Taxpayer Awareness, Taxpayer Compliance]]>
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