Examination of Tax Compliance Behavior Among Citizens In Phnom Penh, Cambodia
DOI:
https://doi.org/10.14456/shserj.2023.12Keywords:
Tax Compliance, Subjective Norms, Perceived Behavioral Control, Perceived Opportunity, Country DevelopmentAbstract
Purpose: Tax revenues are essential to the government for the country development and the improvement of citizens’ quality of life under the good governance of tax compliance. Thus, this study reveals the examination of drivers of tax compliance among citizens in Phnom Penh, Cambodia, which are economic compliance drivers, individual compliance drivers, subjective norms, perceived behavioral control and perceived opportunity. Research design, data, and methodology: This quantitative study targets 500 Cambodian citizens who are living in Phnom Penh and eligible to pay annual personal income tax. The sample techniques are judgmental, convenience and snowball samplings. Before the data collection, the pilot test of 50 participants was approved by Cronbach’s Alpha coefficient values. For the data analysis, confirmatory factor analysis (CFA) was employed to measure construct validity, convergent validity, discriminant validity and goodness of fits. Later, structural equation modeling (SEM) was applied to examine the level of significance and hypotheses testing. Results: The findings show that economic factors, individual factors, subjective norms, perceived behavioral control and perceived opportunity significantly influence tax compliance of citizens in Phnom Penh. Conclusions: Understanding the economic and individual factors impacting tax compliance among taxpayers can help the government to design the tax structure and incentives for better achieving tax revenues for the country development and sustaining financial growth of the nation.
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