Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Factors Affecting Corporate Income Tax Compliance: A Case Study of Small and Medium Enterprises in Vietnam

Author(s): Dao Le Trung, Nga Phan Thi Hang, Thi Thuy Hang Le

Corporate income tax is a tax that plays an essential role in the legal tax system of Vietnam, but to effectively promote the part of corporate income tax, we need to consider it in many ways. Aspects, including the handling experience of foreign countries. Corporate income tax is also one of the crucial tools of the State in performing the function of regulating socio-economic activities in each specific period of economic development. Besides, over the past years, Vietnamese small and medium enterprises (SMEs) have played an important role in socio-economic development, contributing significantly to GDP, creating jobs, and stabilizing the economy. Besides, SMEs still have many limitations in terms of scale and contribution levels and have not yet fully brought into play their full potentials. Therefore, the article determines factors affecting corporate income tax compliance. The study surveyed 600 accounting and tax managers at 600 SMEs and answered 23 questions, but 557 samples were processed. The data was collected from May 2020 to November 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. Five factors are affecting SMEs' corporate income tax compliance in Vietnam with a significance level of 0.01. Finally, this article recommended policies for improving corporate income tax compliance.

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