The Covid-19 pandemic that continues to this day has had a significant impact on the economic sector. One of the impacts is a decrease in tax revenues. The declining tax revenue in this pandemic situation has prompted the government to provide economic policies based on tax incentives to deal with the pandemic for affected taxpayers, especially in the MSMEs sector. The current pandemic requires that most activities be carried out online, including tax obligations. This study aims to examine the effect of Economic Policy Based on Tax Incentives and Modern Tax Administration Systems through e-Registration, e-Filing, e-Billing and e-Reporting for covid-19 incentives on MSMEs Taxpayer Compliance in Denpasar City During the Pandemic Period. This study analyzed primary data from questionnaires distributed to 100 MSMEs taxpayers in Denpasar City. Testing of research variables was carried out using the Partial Least Square method. The results showed that the Economic Policy Based on Tax Incentives and the Modern Tax Administration System with the implementation of e-Filing, e-Billing, e-Reporting for covid-19 incentives had a positive and significant effect on MSMEs taxpayer compliance. While the implementation of e-registration does not have a positive and significant effect on MSMEs taxpayer compliance.