Education and Mentoring on the Utilization of Tax Incentives for MSMEs as a Business Recovery and Strengthening Strategy

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in supporting the national economy, but still face various challenges, particularly in taxation. MSMEs' lack of understanding of tax policies and incentives has led to suboptimal utilization of these incentives, slowing down the recovery and strengthening of their businesses. This community service activity aims to improve MSMEs' understanding and ability to utilize tax incentives as a strategy for business recovery and strengthening. The activity's implementation methods include education through the delivery of material on tax policies and MSME tax incentives, interactive discussions, and technical assistance in tax calculation, payment, and reporting. The activity results indicate an increase in participants' understanding of the types and mechanisms for utilizing tax incentives, as well as increased compliance and readiness of MSMEs in fulfilling their tax obligations. Furthermore, the utilization of tax incentives is considered capable of helping business cost efficiency and supporting the sustainability of MSME businesses. This activity is expected to become a sustainable strategy in supporting economic recovery and strengthening the competitiveness of MSMEs through appropriate and applicable tax policies.