This study examines the influence of tax incentives, tax understanding, and social environment on the compliance of individual taxpayers of micro, small, and medium enterprises (MSMEs) during the COVID-19 pandemic. The research is conducted at the East Denpasar Pratama Tax Service Office. The population consists of all individual MSME taxpayers registered at the office, totaling 4,239 taxpayers. A sample of 98 respondents was selected using the Slovin formula. The study employs descriptive statistical analysis and partial least squares (PLS) for data analysis. The results show that tax incentives, tax understanding, and the social environment have a positive and significant influence on the compliance of individual MSME taxpayers during the pandemic. Tax compliance is defined as the behavior of taxpayers who comply with their tax obligations as stipulated by law. Factors influencing compliance include tax understanding, which refers to knowledge of tax regulations and procedures, and the social environment, which refers to the influence of social norms and pressures. The study also highlights the importance of government policies, such as tax incentives, in promoting tax compliance among MSMEs during the pandemic. The findings suggest that tax incentives, tax understanding, and the social environment are significant factors that influence the compliance of individual MSME taxpayers. The study contributes to the understanding of the factors that influence tax compliance in the context of the pandemic and provides insights for policymakers and tax authorities in improving tax compliance among MSMEs.This study examines the influence of tax incentives, tax understanding, and social environment on the compliance of individual taxpayers of micro, small, and medium enterprises (MSMEs) during the COVID-19 pandemic. The research is conducted at the East Denpasar Pratama Tax Service Office. The population consists of all individual MSME taxpayers registered at the office, totaling 4,239 taxpayers. A sample of 98 respondents was selected using the Slovin formula. The study employs descriptive statistical analysis and partial least squares (PLS) for data analysis. The results show that tax incentives, tax understanding, and the social environment have a positive and significant influence on the compliance of individual MSME taxpayers during the pandemic. Tax compliance is defined as the behavior of taxpayers who comply with their tax obligations as stipulated by law. Factors influencing compliance include tax understanding, which refers to knowledge of tax regulations and procedures, and the social environment, which refers to the influence of social norms and pressures. The study also highlights the importance of government policies, such as tax incentives, in promoting tax compliance among MSMEs during the pandemic. The findings suggest that tax incentives, tax understanding, and the social environment are significant factors that influence the compliance of individual MSME taxpayers. The study contributes to the understanding of the factors that influence tax compliance in the context of the pandemic and provides insights for policymakers and tax authorities in improving tax compliance among MSMEs.