TAX KNOWLEDGE AND COMPLIANCE: A LOOK AT THE TAX CULTURE OF MICROENTREPRENEURS IN JIPIJAPA

Abstract

DOI: https://doi.org/10.46296/yc.v9i17.0722

Abstract

The main objective of this research was to determine the awareness of tax obligations and their impact on tax compliance among microentrepreneurs in the Jipijapa canton. The study arose from the low level of tax compliance in this sector, due to a lack of regulatory awareness, informality, and limited tax culture. A mixed-method methodology was applied: quantitative, through structured surveys addressed to 35 microentrepreneurs, and qualitative, through a semi-structured interview with a local tax expert. The numerical results demonstrated a high level of tax understanding and the use of digital media to comply with responsibilities, although they also revealed common delays and penalties. The qualitative information revealed that the lack of ongoing consulting and the limited perception of the adequacy of tax systems are essential factors in noncompliance and the challenges faced by taxpayers. It is concluded that current tax regulations, particularly simplified systems such as the RIMPE, are designed to simplify tax compliance for microentrepreneurs in the Jipijapa Canton. However, taxpayers' perceptions indicate that these regulations do not always fully adapt to the specifics of their economic activities, which causes a certain level of dissatisfaction and restricts the effectiveness of tax formalization. The importance of modifying regulations and strengthening institutional communication to adapt the regimes to the local situation was identified.

Keywords: tax obligations, tax compliance, microentrepreneurs, Jipijapa, informality.