FACTORS INFLUENCING TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN VIETNAM: A THEORY OF PLANNED BEHAVIOR APPROACH

Abstract

This study aims to identify the factors influencing tax compliance among small and mediumsized enterprises (SMEs) in Vietnam in the context of tax administration modernization. Based on the Theory of Planned Behavior (TPB), the proposed research model includes four factors: Electronic Tax System (ETAX), Attitude toward Tax Compliance (AT), Subjective Norms and Perceived Behavioral Control (SNPBC), and Intrinsic Motivation/ Personal Drive (IM). Survey data from 172 SMEs were processed using SPSS with the multivariate linear regression method (Stepwise). The results reveal that three factors significantly impact tax compliance behavior, namely: attitude toward tax compliance (β = 0.364), subjective norms and perceived behavioral control (β = 0.307), and intrinsic motivation/personal drive (β = -0.226). Notably, the IM factor exhibits a negative impact contrary to the initial hypothesis, indicating that some businesses tend to prioritize short-term financial benefits over fulfilling their tax obligations. The ETAX variable is not statistically significant, suggesting that the current electronic tax system has not yet played an effective role in promoting compliance. The findings contribute to expanding the empirical foundation of TPB in the field of tax compliance and provide important policy implications for enhancing tax administration effectiveness for SMEs.