Factor affecting corporate income tax compliance behavior of enterprises doing business in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF BANKING GRADUATION THESIS FACTORS AFFECTING CORPORATE INCOME TAX COMPLIANCE BEHAVIOR OF ENTERPRISES DOING BUSINESS IN HO CHI MINH CITY NGUYEN TRAN NHU PHUONG HO CHI MINH CITY – 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF BANKING GRADUATION THESIS FACTORS AFFECTING CORPORATE INCOME TAX COMPLIANCE BEHAVIOR OF ENTERPRISES DOING BUSINESS IN HO CHI MINH CITY NGUYEN TRAN NHU PHUONG HO CHI MINH CITY – 2023 ABSTRACT The thesis "Factors affecting Corporate Income Tax compliance behavior of enterprises doing business in Ho Chi Minh City" focuses on studying and analyzing the factors that influence compliance with corporate income tax by enterprises in Ho Chi Minh City The research aims to better understand the factors affecting tax compliance behavior and provide recommendations to improve the effectiveness of tax management for corporate income In this thesis, the author conducts an analysis such as the economic environment, tax policies, tax administration, social factors, and the psychological behavior of taxpayers The research methods include surveys, statistical analysis, and quantitative regression models The study results demonstrate that higher authorities' tax administration plays a crucial role in tax compliance behavior When inspection and enforcement activities, including penalties and rewards, are conducted rigorously, it leads to a more positive attitude and behavior toward tax compliance Additionally, the financial motivation of businesses also influences tax compliance behavior, with financially stable enterprises exhibiting a higher tendency to comply with tax regulations Based on the research findings, the thesis proposes recommendations to improve compliance behavior, emphasizing the need to enhance collaboration among relevant stakeholders, including tax authorities, businesses, and specialized organizations, to collectively promote tax compliance Creating a collaborative environment that fosters information exchange and sharing of experiences will contribute to raising awareness and improving the effectiveness of tax management iv DECLARATION This thesis is the original work of the author, and the research findings are truthful, with no content that has been previously published or work done by others, except for the duly cited and referenced sources within the thesis Ho Chi Minh City, June 21, 2023 Author Nguyen Tran Nhu Phuong v ACKNOWLEDGEMENTS During the process of completing this graduation thesis, I have received tremendous help, support, and encouragement from individuals and groups Firstly, I would like to express my heartfelt gratitude to all the respected professors and lecturers at the in Ho Chi Minh City University of Banking who have imparted profound knowledge and enhanced my skills in the field, providing me with a solid foundation of knowledge This has made it easier for me to absorb and integrate into future work Secondly, I would like to give my special thanks go to Dr Huynh Thi Ngoc Anh, my supervisor, for her dedicated guidance, invaluable advice, and assistance in correcting errors and providing important recommendations to improve the quality of my thesis Lastly, I am deeply grateful to my family for their unwavering support throughout my academic journey and life Their encouragement and sacrifices have been instrumental in my completion of this thesis I extend my heartfelt appreciation and love to them for their exceptional care and dedication Due to my limited knowledge and practical experience, this thesis may still have some shortcomings I sincerely request the esteemed professors and lecturers to provide feedback to help me improve this thesis and enhance my knowledge for future endeavors Ho Chi Minh City, June 21, 2023 Author vi Nguyen Tran Nhu Phuong vii TABLE OF CONTENT ABSTRACT iii DECLARATION iv ACKNOWLEDGEMENTS v LIST OF TABLES xi LIST OF FIGURES xi CHAPTER 1: INTRODUCTION 1.1 Research statement 1.2 Research aims and objectives 1.2.1 Overall objective 1.2.2 Specific objective 1.3 Research questions 1.4 Subject and scope of the research 1.4.1 Research subject 1.4.2 Research scope 1.5 Research method 1.6 Expected contribution 1.7 Previous research 1.7.1 Previous research in Viet Nam 1.7.2 Previous international research 1.8 Thesis structure 11 SUMMARY OF CHAPTER 12 CHAPTER 2: LITERATURE REVIEW 13 2.1 Concepts related to Corporate Income Tax Compliance 13 2.1.1 Concepts related to Corporation Income Tax 13 2.1.2 Concepts related to Tax Compliance 14 2.2 Factors affecting on CIT compliance 16 2.2.1 Factor of Economy 16 2.2.2 Factor of Tax policy 19 2.2.3 Factor of Tax administration: 21 2.2.4 Factor of social 24 2.2.5 Factor of psychology behavior: 26 viii SUMMARY OF CHAPTER 28 CHAPTER RESEARCH METHODOLOGY 29 3.1 Research model and hypothesis 29 3.1.1 Hypothesis 29 3.1.2 Research model 34 3.2 Scale formulation 36 3.3 Survey questionnaire 38 3.4 Sampling method 38 3.5 Data analysis 39 3.5.1 Descriptive statistics 39 3.5.2 Scale test 40 3.5.3 EFA analysis 40 3.5.4 Regression analysis 41 SUMMARY OF CHAPTER 41 CHAPTER DATA ANALYSIS AND DISCUSSION 42 4.1 Results of descriptive statistics 42 4.2 Cronbach’s Alpha 44 4.3 Result of exploratory factor analysis (EFA) 47 4.3.1 EFA results for independent variables 48 4.3.2 EFA results for independent variables 51 4.4 Linear regression analysis 52 4.4.1 Correlation test 53 4.4.2 Testing for multicollinearity 54 4.4.3 Regression analysis 54 4.5 Conclusion of research hypotheses 56 SUMMARY OF CHAPTER 58 CHAPTER CONCLUSION AND IMPLICATIONS 59 5.1 Conclusions 59 5.2 Implications 60 5.2.1 Recommendation for the economic factor 60 5.2.2 Recommendation for the tax policy factor 61 5.2.3 Recommendation for the tax administrative factor 62 5.2.4 Recommendation for the Social factor 63 5.2.5 Recommendation for the Psychogical behavior factor 64 ix 5.3 Limitations and future research 64 SUMMARY OF CHAPTER 65 REFERENCES 66 APPENDIX 1: QUESTIONNAIRE SURVEY 69 APPENDIX 2: DESCRIPTIVE STATICTICS 73 APPENDIX 3: CRONBACH’S ANPHA 74 APPENDIX 4: EFA 77 APPENDIX 5: REGRESSION STATISTICS 80 x LIST OF ACRONYMS Acronyms Meaning SPSS Statistical Package for the Social Sciences EFA Exploratory Factor Analysis ANOVA KMO Analysis of Variance Kaiser-Meyer-Olkin Measure of Sampling Adequacy VIF Variance Inflation Factor Sig Significance value DW Durbin – Watson CIT Corporate Income Tax VAT Value Added Tax HCMC Ho Chi Minh City GTD General of Tax Department MOF Ministry of Finance Organization for Economic Co-operation and Development OECD