Factors Affecting the Tax Compliance among Small and Medium Enterprises' Business Owners in Malaysia

Abstract

This study explores the factors influencing the tax compliance among Small and Medium Enterprises (SMEs) business owners in Malaysia. This study investigates the effect of tax morale, tax complexity, and tax knowledge on tax compliance. This study employed an online survey to collect the data, and 110 SME business owners responded. The regression analysis was used to analyze the data. The findings of this study indicate that tax morale and tax knowledge have a significant impact on tax compliance. The findings of this study could assist IRBM in improving tax compliance among Malaysians, particularly those who manage SMEs.

Keywords: Tax compliance; Small Medium Enterprises.

eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.

DOI: https://doi.org/10.21834/ebpj.v7i20.3542