Factors Affecting Tax Compliance Among SST 2.0 Taxpayers in Malaysia

• Main Author: Ravinder Kaur, Santosh Singh
• Format: Thesis
• Language: English; English
• Published: 2023
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/11398/1/s829530_01.pdf; https://etd.uum.edu.my/11398/2/s829530_02.pdf; https://etd.uum.edu.my/11398/

Tax is a platform for the government to collect the additional revenues required to meet its imperative obligations and tax compliance has been recognized as an ongoing concern on a global scale. The present study was specifically conducted to examine the sales and service tax (SST) 2.0 compliance among SST registrants in Malaysia. The main objective of this study is to examine the relationship between tax knowledge, SST law complexity, tax fairness, and SST compliance among SST taxpayers. A total of 310 questionnaires were distributed to SST registrants in the Northern Region of Peninsular Malaysia for data collection. The data for this study was analyzed using the Statistical Package for Social Sciences (SPSS) and multiple regression analysis was employed to test the hypotheses of this study. The findings indicate a positive and significant relationship between taxpayers’ SST knowledge and SST compliance. Complexity of law however showed a negative significant relationship with SST compliance. Meanwhile, the relationship between tax fairness on SST tax compliance was found to be non-significant. This research concluded with theoretical and practical implications for the Malaysian tax authority and government. This study contributes significantly to the government, tax agencies, and policymakers by providing empirical insights into the factors influencing sales and service tax compliance behavior among Malaysian SST taxpayers, as well as valuable information for SST registrants seeking to increase compliance in the future. The information is essential for the Malaysian government to develop more realistic strategies and policies regarding tax compliance behavior in Malaysia.