Government Support Mechanisms, Taxpayers’ Compliance and Satisfaction Among Small and Medium Enterprises
DOI:
https://doi.org/10.69569/jip.2026.133Keywords:
Compliance, Government support mechanisms, Satisfaction, SMEs, TaxpayersAbstract
The research examined how Government Support Mechanisms (GSM), Taxpayers' Satisfaction (TPS), and Taxpayers' Compliance (TPC) interact among Small and Medium Enterprises (SMEs) in Iloilo City. The researcher collected data from 300 SME owners and managers using a structured research instrument with a descriptive-correlational research design. The business profile includes years of operations, industry type, and enterprise type. The study results showed that GSM received Highly Effective ratings from participants who reported Digital Infrastructure as the most important aspect. TPS received a rating of Highly Satisfied, with a mean value of 3.21, while TPC showed High results, with a mean value of 3.04. Data analysis using Multiple Regression and Mediation Analysis detected no direct links between the studied variables. The researcher observed a major negative suppression effect when testing TPS as a mediator. The GSM demonstrated a strong capacity to generate compliance through its direct relationships, which produced a positive effect with a beta value of 0.2531 and a p-value below 0.001. However, this relationship remained concealed because satisfaction levels changed. The results demonstrate Competitive Mediation, as satisfaction serves as an intervening variable that must be controlled to reveal how government support affects the system's core functions. The study shows that the Bureau of Internal Revenue (BIR) successfully operates its digital-first system, enabling it to meet compliance requirements. The system's actual compliance level depends on two factors: the "Power of Authority" and system usability, rather than on emotional satisfaction. The study recommends three actions: server optimization during high-demand times, implementation of standardized administrative processes, and development of simpler reporting methods for small businesses.
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