Tax knowledge, Tax compliance and issues raised in converting household businesses to corporate firms in Vietnam

Abstract

With 4 amendments of the business law and the application of E-tax, now it becomes more convenient and
costless to set up a new company. However there are a lot of entrepreneurs who do not want to convert their
household business to corporate firms. The question is which factors lead to this convert hesitation. Based on the
theory of tax knowledge and tax compliance combined with the result of surveying 50 household businesses, the
paper demonstrates the difficulties and concern when household businesses are converted to corporate firms.
Moreover, the article popose recommendations which leading to favorable conditions for the converting.