Factors affecting tax compliance of household businesses in Hanoi: empirical evidence from a multivariate linear regression model

Abstract

In the context of tax reform and digital transformation in Vietnam, improving tax compliance among household businesses is essential to ensure fiscal stability and tax equity. This study examines the effects of key factors on tax compliance (TAXCOMP) among household businesses in Hanoi. Survey data from 527 businesses were analyzed using SPSS 26.0, employing Cronbach’s alpha, exploratory factor analysis (EFA), and OLS regression. The findings show that tax literacy (TAXLIT), the legal and tax information environment (LEGALINF), and social–community norms (SOCNORM) have positive and statistically significant effects on TAXCOMP, while tax rates (TAXRATE) and compliance costs (COMPCOST) have negative effects. The study therefore suggests strengthening tax education, improving information transparency, and simplifying procedures to promote voluntary compliance during the digital transformation process.