Abstract
This study was conducted to examine general information of tax obligations and perceived tax compliance for small and medium enterprises in the district of Gia Lam district. To achieve these objectives, 150 small and medium enterprises were randomly selected and analyzed using descriptive analysis and Principal Component Analysis (PCA). The results show that most of enterprises got difficulties in register, declare and pay taxes, and nearly half of them had submitted taxes lately. Besides, perceived tax compliance of enterprises could be divided into five key factors, including: "Quality of tax services"; "society norms"; "Technology Application"; "Enterprise responsibility "; and "Quality of tax officials". Based on these results, some recommendations could give to the tax authorities in order to improve tax regulations and policies.
Highlights
Managing tax compliance is a major challenge for governments and tax authorities in developing countries, including Vietnam
Most taxpayers agreed with the statements that "tax rates are too high" and that there is a "complex and unfair tax system"
The perception of tax compliance was divided into 5 main components, namely quality of tax services, social norms, technology application, enterprise responsibility, and quality of tax officials
Summary
Taxes are mandatory for all economic organizations and are the largest proportion of revenue in national budgets. According to a recent report, Vietnam has nearly 517,900 existing enterprises, of which small and medium enterprises (SMEs) account for about 98% (General Statistics Office, 2018). The enterprises contribute approximately 39.55% of the total state budget revenue (General Statistics Office, 2019). The tax debts of enterprises were 82,972 billion VND in 2019, an increase of 8.7% compared to 2018, in which the tax debt of SMEs is the primary concern (General Department of Taxation, 2019). Managing tax compliance is a major challenge for governments and tax authorities in developing countries, including Vietnam. Many studies have shown that in developing countries, the actual tax revenue is less than half of the potential taxes that should contribute to the state budget (Gandhi et al, 1987). Governments and tax authorities need to consider the factors affecting tax compliance to ensure the transparency, fairness, and efficiency of the tax system
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