The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam

Abstract

One of the main reasons governments of developing countries, including Vietnam, face many difficulties in tax collection is taxpayers’ non-compliance with taxes. Therefore, the question for the governments of these countries is how to encourage taxpayers to comply voluntarily without having to resort to mandatory measures. This study examines non-economic factors affecting the voluntary tax compliance behavior of small and medium enterprises (SMEs) in Vietnam. The data used in the study were collected from the survey results of 339 tax accountants and managers at SMEs in some provinces and cities in Vietnam. The study data were processed with the statistical software SPSS 20 to test for Cronbach’s alpha, exploratory factor analysis, and linear regression analysis. The research results show that the possibility of tax inspection and audit, social norms, tax knowledge, personal norms, perception of the tax system’s fairness, and tax service quality has a significant influence on the voluntary tax compliance behavior of SMEs in Vietnam; of which, the possibility of tax inspection and audit has the strongest impact, and tax services quality has the weakest effect on the voluntary tax compliance behavior of these enterprises.

Perceived political corruption and tax compliance intentions among private enterprises in emerging economies: The roles of tax morale and tax tolerance in Ghana

“…This emphasises the importance of psychological traits in tax compliance drives in emerging economies. This finding in Ghana also corroborates the positive effect of tax morale on tax compliance intentions (Alm, 2019;Lois et al, 2019;Taing & Chang, 2020;Timothy & Abbas, 2021) and that of tax tolerance (Al-Rahamneh & Bidin, 2022;Alshira'h & Abdul-Jabbar, 2019;Devos, 2014;Hassan et al, 2021;Muslichah & Graha, 2018;Nartey, 2023;Nguyen, 2022;Oladipo et al, 2022) in other economies.…”

“…Devos (2014) noted that perception of unfairness in the tax system may cause tax evasion and taxpayers may use such unfairness to justify or rationalise their noncompliant behaviour. Again, perceived fairness of tax has been found to enhance tax compliance intention in Indonesia (Muslichah & Graha, 2018), Nigeria (Oladipo et al, 2022), Vietnam (Nguyen, 2022), Ghana (Nartey, 2023) and Jordan (Al‐Rahamneh & Bidin, 2022; Alshira'h & Abdul‐Jabbar, 2019). Hassan et al (2021) also finds that tax compliance simplicity has a positive impact on tax filing (Hassan et al, 2021).…”

“…Theoretically, there are two approaches to tax compliance, deterrence and psychological approaches, and the psychological approach is often used for empirical studies (Devos, 2014). In the framework of the psychological approach, prior studies have explored the determinants and the relationship among tax compliance intentions and its related concepts such as tax morale, tolerance and corruption among public officials (Al‐Rahamneh & Bidin, 2022; Alshira'h & Abdul‐Jabbar, 2019; Amoh & Ali‐Nakyea, 2019; Banerjee et al, 2022; Bertinelli et al, 2020; Boly et al, 2021; Hassan et al, 2021; Irawan & Utama, 2021; Nartey, 2023; Nguyen, 2022; Oladipo et al, 2022; Privitera et al, 2021; Timothy & Abbas, 2021). The literature suggests that tax compliance is strongly linked to institutional and structural hindrances, especially perceived political corruption (Banerjee et al, 2022; Boly et al, 2021; Irawan & Utama, 2021; Privitera et al, 2021; Rosid et al, 2018; Timothy & Abbas, 2021).…”

Willingness to pay for electronic transaction levy: empirical evidence from Ghana

“…Armah-Attoh and Awal (2013), Agyeiwaa et al . (2019) and Nguyen (2022) also revealed that knowledge drives tax compliance behaviour. Having knowledge of the tax process and tax regulations could help individuals honour their tax obligations without a glitch.…”

Sistem Informasi Akuntansi, Kualitas Pemeriksaan Pajak dan Kepatuhan Perpajakan dengan E-Filling sebagai Variabel Mediasi

“…Pemeriksaan pajak secara menyeluruh dapat mendorong wajib pajak lebih berhati-hati dalam kepatuhan pajak. Wajib Pajak mengetahui akibat dan hukuman yang dapat merugikan, jika ditemukan ketidakpatuhan melalui pemeriksaan pajak, sehingga membuat wajib pajak memiliki rasa kepatuhan yang lebih baik (Nguyen, 2022).…”