The purpose of this study was to examine the effect of Coretax Tax System Modernization and Tax Literacy on the Tax Compliance of Individual MSME Taxpayers at KPP Pratama Dumai. This study employed a quantitative research method using a purposive sampling technique. The population consisted of individual MSME taxpayers registered at KPP Pratama Dumai, with a sample of 173 respondents. Multiple linear regression analysis using SPSS version 26 was utilized as the analytical tool. The results showed that Coretax Tax System Modernization had a positive and significant effect on the Tax Compliance of Individual MSME Taxpayers. Tax Literacy also had a positive and significant effect on the Tax Compliance of Individual MSME Taxpayers. Simultaneously, Coretax Tax System Modernization and Tax Literacy significantly affected the Tax Compliance of Individual MSME Taxpayers. The coefficient of determination indicated that both independent variables were able to explain 78.9% of the variation in Tax Compliance of Individual MSME Taxpayers, while the remaining 21.1% was influenced by other factors outside the scope of this study. These findings imply that improving MSME taxpayer compliance can be achieved through the optimization of Coretax implementation and the enhancement of tax literacy. Therefore, KPP Pratama Dumai is encouraged to strengthen digital tax transformation and expand tax education and socialization programs for MSME taxpayers.
Keywords: Coretax Tax System Modernization, Tax Literacy, Taxpayer Compliance, MSMEs.