Suggestions for the City From Examining Impacts of Non-Economic Factors Affecting Voluntary Tax Compliance – Case of Vietnam Businesses
Keywords:Vietnamese Economy, Voluntary Tax Compliance, Tax Non-Compliance, Tax Authorities
Purpose: This paper aimed to examine the impacts of non-economic factors including: Social Norms, Tax Education, Coercive Power of Tax Authority, Legitimate Power of Tax Authority, Tax Information, Service Quality of Tax Authority, and Quality -Public Governance on the voluntary tax compliance of businesses in hcm City, Vietnam.
Theoretical framework: Findings of Cialdini and Trost, in 1998 in related to standards of effect of non-economic factors in voluntary tax compliance was reported in details, but it will including and not limit to rules constructed and standards (social norms so called) in psychological aspects. This makes a background for presnt study to completing non-economic factor.
Design/Methodology: The study used questionnaires to collect date from survey subjects who are accountants, chief accountants and financial directors of businesses in Ho Chi Minh City, Vietnam. The questionnaire consisted of 2 parts. The first section included an introduction to the business and participants answering the questionnaire. Part 2 included content related to voluntary tax compliance and factors affecting voluntary tax compliance. With 501 valid responses from the survey subjects, the author test the hypotheses in the research model (Structural).
Findings: The research results found that all 7 factors had a significant impact on voluntary tax of businesses in HCM City, Vietnam. Government, tax authorities, and universities basing on this research can come up with more appropriate solutions to enhance the tax compliance (voluntary) behavior of businesses.
Research, Practical & Social implication: this study only analyzed the factors of internal enterprise characteristics affecting the high and low level of non-compliance with corporate income tax, but not yet included in the research model to analyze other factors as important as those outside the business, etc. It is really necessary to come up with more appropriate solutions to strengthen the voluntary tax compliance behavior of businesses, increase revenue for the budget, and contribute to the development of the country and society.
Originality/ value: suggestions for solutions should be taken to increase the tax revenues for the city is stated in present work. Via our study (testing non econ variables), findings tell us that all 7 factors tested had a positive impact on voluntary tax compliance. They included social norms, legal power of tax authorities, coercive power of tax authorities, tax education, service quality of tax authorities, tax information quality public administration; in which, tax education had the most influence, while coercive power of tax authorities had the least influence.
Abass, Z. K., Flayyih, H. H., & Hasan, S. I. (2022). The Relationship Between Audit Services and Non-Audit Actuarial Services in the Auditor’s Report. International Journal of Professional Business Review, 7(2), e0455-e0455.
Adekoya A. Augustine & Adegbie. F. Folajimi & Agbetunde. L. Ayodele .(2020). Quality of Tax Services, Moderated by Trust in State Internal Revenue Service and Voluntary Tax Compliance Behaviour among Individual Taxpayers in South-West, Nigeria. Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, 8(2): 47-57. https://doi.org/10.20448/2002.82.47.57
Alabede, J. O., Ariffin, Z. Z., & Idris, K. M. (2011). Determinants of tax compliance behaviour: A proposed model for Nigeria. International Research Journal of Finance and Economics, 78(1), 121-136.
AlAdham, M., Abukhadijeh, M. A., & Qasem, M. F. (2016). Tax evasion and tax awareness evidence from Jordan. International Business Research, 9(12), 65–75.
Alm, J., McClelland, G.H. and Schulze, W.D. (1992). Why do people pay taxes? Journal of Public Economics, Issue 48/1992, pp. 21 – 38.
Benk, S., Çakmak, A. F., & Budak, T. (2011). An investigation of tax compliance intention: A theory of planned behavior approach. European Journal of Economics, Finance and Administrative Sciences, 28, 181-188.
Bobek, Donna & Hageman, Amy & Kelliher, Charles. (2012). Analyzing the Role of Social Norms in Tax Compliance Behavior. Journal of Business Ethics. Springer, vol. 115(3), pages 451-468, July. https://doi.org/10.1007/s10551-012-1390-7
Brady, M.K. & Cronin, J.J. Jr. (2001). Some new thought on conceptualizing perceived service quality: A hierarchical approach. Journal of Marketing, 65(3), 34-49. https://doi.org/10.1509/jmkg.184.108.40.20634
Cialdini, R. B., & Trost, M. R. (1998). Social influence: Social norms, conformity and compliance. In D. T. Gilbert, S. T. Fiske, & G. Lindzey (Eds.), The handbook of social psychology (pp. 151–192). McGraw-Hill. https://psycnet.apa.org/record/1998-07091-021
Chebusit, C., Namusonge, G. S., Oteki, E. B., & Kipkoech, E. C. (2014). Factors affecting tax compliance among small and medium enterprises in Kitale town Trans-nzoia County, Kenya. http://repository.mut.ac.ke:8080/xmlui/handle/123456789/4669
Collins, J. H., Milliron, V. C., & Toy, D. R. (1992). Determinants of tax compliance: A contingency approach. The Journal of the American Taxation Association, 14(2), 1. Retrieved from https://www.proquest.com/scholarly-journals/determinants-tax-compliance-contingency-approach/docview/211137092/se-2
Fachrunnisa, O. (2022). The effectiveness of directing optional activities as capital for small and medium enterprises based on digitalization in the crisis. International Journal of Professional Business Review, 7(2), e0468-e0468.
Giang, D. H., Xuan, P. T., & Hai, N. Q. (2016). Corruption risks in Vietnam’s household business sector. Crime, Law and Social Change, 65(4), 395-422.
Hair, J. F., Anderson, R. E., Tatham, R. L., & William, C. B, (2010). Multivariate data analysis: Pearson Prentice Hall. https://www.drnishikantjha.com/papersCollection/Multivariate%20Data%20Analysis.pdf
Hofer, C. (1975). Toward a contingency theory of business strategy. Academy of Management Journal 18: 784-810.
Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary compliance: The “slippery slope” framework. Journal of Economic Psychology, 29, 210–255. https://doi.org/10.1016/j.joep.2007.05.004
Mas’ud, A., Abd Manaf, N. A., & Saad, N. (2014). Do trust and power moderate each other in relation to tax compliance?. Procedia-Social and Behavioral Sciences, 164, 49-54.
Mascagni, G. and Santoro, F. (2018). Why is Tax Education Important for Compliance? ICTD Research in Brief 23, Brighton: IDS. https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/14012
Mustapha, B., & Obid (2015). Tax Service Quality: The Mediating Effect of Perceived Ease of Use of the Online Tax System, Procedia - Social and Behavioral Sciences. Volume 172. Pages 2-9. ISSN 1877-0428. https://doi.org/10.1016/j.sbspro.2015.01.328
Nguyen Thi Le Thuy (2019). Improving the state's tax collection management to enhance corporate tax compliance (Hanoi case study). Thesis of doctoral degree in economics. National Economics University.
Ntiamoah, J. A., & Asare, J. (2021). Economic versus Non-Economic Factors: Which is More Relevant to an Individual's Tax Compliance Decisions in a Developing Economy?. Ntiamoah, J. A., & Asare, J. (2021). Economic versus Non-Economic Factors: Which is More Relevant to an Individual's Tax Compliance Decisions in a Developing Economy? https://d1wqtxts1xzle7.cloudfront.net/86722124/UJAF19-12225284-with-cover-page-v2.pdf?Expires=1668245241&Signature=L3oK-jGQD8mTxxpj6oTV6eZ3WCL7LSXoFg32I~x2~YgCbmak1oW33b4nKvlXE7lyl~4shtipCf73EjELY2DncvSuMM5~0MYbmNOqnxKeWF4OUncecV0fA0hjX2A5fBiVXvowqp9czSh~FeLtRQRaoQOjcwOPr2pKZI07IO9gVjosnqAm9nHhrIkXWw8LGWLD7OETCEMLETAjdnkJsM9uRuG1J2w37r1-AtKVfnvQ3L5EPwKgqC55ksv1U0MWgogmr8OtCw2J2g2I8lqXUMnf5NDnHO-XsEhEI4kJzyGhLqJNnTWX93-URSZEIwOzBI7LLDA88fzDB-iqGG8G7S8A8w__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA
Owens, J., & Parry, R. (2009). Why tax matters for development. OECD Centre for Tax Policy and Administration. Retrieved from http://oecdobserver.org/news/archivestory.php/aid/2943/Why_tax_matters_for_development.html.
Richardson, M & Sawyer, A. (2001). A Taxonomy of the Tax Compliance Literature: Further Findings, Problems and Prospects. Australian Tax Forum. 16. 137.
Silvani, C., & Baer, K. (1997). Designing a Tax Administration Reform Strategy: Experiences and Guidelines. IMF Working Papers, 1997(030).
Trung ND, Han LTh, Thuy NTh, Diep NT, Yen LL (2022). Suggestions and regulations for designing, planning and constructing industrial parks; a case study of Vietnam. Journal of Art and Architecture Studies, 11 (1): 14-18. DOI: https://dx.doi.org/10.54203/jaas.2022.3
Wallschutzky, I. G. (1984). Possible causes of tax evasion. Journal of Economic Psychology, 5(4):371-385.
How to Cite
Copyright (c) 2023 Nguyen Thi Phuong Hong
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html