Factors affecting individual income tax compliance in Thu Dau Mot City: An approach from the Theory of Planned Behavior (TPB) and the Fischer Tax Compliance Model

Abstract

This study analyzes factors influencing personal income tax (PIT) compliance in Thu Dau Mot city, Binh Duong province, drawing on theoretical foundations including the Theory of Planned Behavior (TPB), the Fischer Tax Compliance Model, Transaction Cost Theory (TCT), and Rational Choice Theory (RCT). Employing a mixed-methods approach, the research identifies six determinants affecting tax compliance behavior: tax knowledge, perceived tax fairness, tax rates, penalty severity, quality of tax services, and compliance costs. Among these, tax knowledge and tax service quality show the strongest positive effects, whereas tax rates and compliance costs exert negative influences. Proposed solutions include enhancing tax education and outreach, simplifying administrative procedures, improving tax service quality, and developing a transparent and equitable tax system to foster voluntary
compliance.