In order to increase state revenue, the Government is exploring the taxation sector for Micro, Small and Medium Enterprises / MSMEs which are located in shopping centers, due to the low compliance of MSME taxpayers. In July 2018, a Government Regulation was issued to replace the previous regulation, which contained a tax rate for MSMEs of 0.5%. MSME taxpayer compliance is important in implementing government regulations because it is influenced by many factors, namely internal and external.

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... study analyzes the influence of internal and external factors in the implementation of government regulations on MSME taxpayer compliance (Perception of Justice, Knowledge, Administration, Benefits, Sanctions & Socialization, and Religiosity). The quantitative approach used data collection through questionnaires and purposive sampling, and analyzed by multiple linear regression. The results of this study indicate that the factors of Knowledge, Administration and Sanctions & Socialization have a partial effect, while Perceptions of Justice, Benefits and Religiosity have no effect on the implementation of government regulations on taxpayer compliance. Simultaneously, all factors matter. The Directorate General of Taxes is advised to improve factors that can increase taxpayer compliance, so that voluntary tax payments can be achieved, such as Religious Zakat.