Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Factors Affecting Corporate Income Tax Compliance: A Case Study of FDI Enterprises in Vietnam

Author(s): Giang Quoc Tuan, Nguyen Khac Hung, Duong Thi Mai Phuong, Huynh Vu Bao Tram, Nguyen Anh Hien

In Vietnam, corporate income tax plays a significant role in ensuring State budget revenues and distributing income. The high or low tax rates applied to corporate income tax entities are different, depending on the income regulation point of view and the goal set in each country’s income distribution in each phase. Therefore, this paper aims to determine factors affecting corporate income tax compliance. Besides, the study surveyed 500 FDI enterprises and answered 16 questions, but 485 samples were processed. The data collected from July 2020 to December 2020 in Vietnam. The authors applied a simple random sampling technique, tested Cronbach’s Alpha and Confirmatory Factor Analysis (CFA), and model testing with Structural Equation Model (SEM) analysis. The article’s findings have three factors affecting FDI enterprises’ corporate income tax compliance in Vietnam with a significance level of 0.01. Moreover, this article recommended policies for enhancing the corporate income tax compliance of FDI enterprises.

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