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11 (1) 2021

Determinants affecting tax compliance: A case of business households in Ho Chi Minh City, Vietnam


Author - Affiliation:
Khuc Dinh Nam - Nong Lam University , Vietnam
Nguyen Thi Binh Minh - Nong Lam University , Vietnam
Corresponding author: Khuc Dinh Nam - khucdinhnam@hcmuaf.edu.vn
Submitted: 21-09-2020
Accepted: 18-01-2021
Published: 26-02-2021

Abstract
This paper aims to identify key factors influencing the tax compliance of business households in Ho Chi Minh City, Vietnam. The researchers surveyed 215 owners of business households in Ho Chi Minh City from June 2020 to July 2020. Analysis of the model includes the 4 phases following: (i) Applying the expert methodology; (ii) Cronbach’s test for reliability of the scale and exploratory factors analysis (EFA); (iii) Pearson correlation coefficient analysis; (iv) Regression analysis and hypothesis test of a model. The results of this study revealed that factors affecting tax compliance of business households in Ho Chi Minh City, Vietnam in descending order of importance: Tax Rate, Tax Knowledge, Tax Penalty, Personal Norm, and Perceived Fairness (of the system). Moreover, the tax rate had a negative relationship with tax compliance and the others had a positive one with tax compliance. Finally, the research also proposes some implications to enhance tax compliance of business households and directions for further research.

Keywords
tax compliance; business households; personal norm; tax rate; tax knowledge

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Cite this paper as:

Khuc, D. N., & Nguyen, T. B. M. (2021). Determinants affecting tax compliance: A case of business households in Ho Chi Minh City, Vietnam. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 11(1), 136-152. doi:10.46223/HCMCOUJS.econ.en.11.1.984.2021


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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.11.1.984.2021
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