THE EFFECT OF TAX UNDERSTANDING, FINANCIAL LITERACY AND FINANCIAL MANAGEMENT ON TAX COMPLIANCE ON EMPLOYEES OF PT BOLA INTAN ELASTIC

This study aims to examine the effect of tax understanding, financial literacy, and financial management on tax compliance among employees of PT Bola Intan Elastic. The research used a quantitative associative approach. Primary data were collected through questionnaires distributed to 187 employees and analyzed using multiple linear regression with IBM SPSS Statistics 25. The analysis included validity, reliability, classical assumption, coefficient of determination, F-test, and t-test. The findings show that tax understanding does not have a significant effect on tax compliance, while financial literacy has a significant positive effect. Financial management also does not have a significant effect on tax compliance. Simultaneously, tax understanding, financial literacy, and financial management significantly affect tax compliance. The regression model produced R Square of 0.103 and Adjusted R Square of 0.088, indicating that the three independent variables explain 8.8% of the variation in tax compliance after adjustment. The findings indicate that financial literacy is the most important partial factor in this study, while other factors outside the model also contribute to tax compliance.