<![CDATA[Low tax compliance among micro, small, and medium enterprises (MSMEs) remains an unresolved challenge within Indonesia's tax ecosystem. This condition impedes government efforts to optimize state revenue and reflects structural as well as behavioral barriers that have yet to be comprehensively addressed. This study aims to identify and analyze the factors underlying non-compliant tax behavior among MSME taxpayers with respect to their tax reporting and payment obligations. Employing a descriptive quantitative research design, data were collected through questionnaires distributed to 120 MSME owners registered at the Pratama Tax Service Office (Kantor Pelayanan Pajak/KPP Pratama) in Surabaya. Data processing combined descriptive statistics with multiple linear regression analysis. The findings reveal that limited tax knowledge, complexity of administrative procedures, restricted access to digital technology, negative perceptions of applicable tax rates, insufficient outreach by tax authorities, low taxpayer awareness, and weak institutional trust in government constitute the most significant determinants of non-compliant behavior. Among these, limited tax knowledge (β = −0.412; p < 0.01) and complexity of administrative procedures (β = 0.358; p < 0.01) proved to be the strongest predictors. The coefficient of determination (R² = 0.631) confirms that these factors collectively explain 63.1% of the total variation in MSME taxpayer non-compliance. This study recommends targeted policy interventions, including simplification of reporting mechanisms, strengthening of sustained tax education programs, and development of technology-based tax services tailored to the capacity of MSME operators.]]>
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