Harmonization of Tax Regulations through the Omnibus Law in Realizing Bali MSME Business Stability

The government continues to make efforts regarding the national economic recovery after the COVID-19 pandemic, especially for MSME entrepreneurs. One of them is through Omnibus law namely laws that focus on simplifying the number of regulations due to their nature of revising and repealing many laws. Harmonization of the Taxation Law in relation to MSME business includes General Provisions and Tax Procedures, Income Tax and Value Added Tax, with the aim of increasing economic growth and recovery, optimizing state revenues, simplifying rules, justice, certainty laws and improve taxpayer voluntary compliance. The purpose of this study is to provide input to: 1) the Bali Regional Tax Office regarding the recovery of Bali MSME businesses due to the covid pandemic so that taxpayers can recover their businesses. 2) Obtain empirical evidence of the effect of HPP cluster KUP and income tax on the stability of MSMEs in Bali. Novelty research is a touch of tax exemption for MSMEs with a turnover of up to 500 million. The expected finding is that DGT Bali will focus on business recovery and empowering MSMEs. This study uses primary data from interviews with SMEs. The analysis technique was carried out by using triangulation analysis. The results showed that the HPP of the KUP Cluster had an insignificant negative effect on the business stability of MSMEs in Bali, while the HPP of the Income Tax Cluster had a significant negative effect on the business stability of MSMEs.