Factors influencing personal income tax compliance of taxpayers with e-commerce business activities

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Abstract

Taxpayers’ personal income tax compliance significantly influences the effectiveness of personal income tax management. In Vietnam, e-commerce is quite developed, but tax compliance of taxpayers with e-commerce business activities is not high. This study aimed to quantify the factors affecting taxpayers’ personal income tax compliance with e-commerce business, a typical case in Vietnam, and this is very important for stakeholders, especially for policy makers to have a strategy to have better tax management. Personal income tax compliance is influenced by the following factors: economic factors, tax authority characteristics, social factors, personal factors, demographic factors and other factors (Engida & Baisa, 2014; Helhel & Ahmed, 2014).The research was carried out using qualitative combined with quantitative methods such as; Cronbach’s alpha test, exploratory factor analysis (EFA), and confirmatory factor analysis to determine the impact of factors affecting personal income tax compliance of taxpayers with e-commerce business. This research employs survey data from 355 personal income taxpayers engaged in e-commerce businesses in Hung Yen of Vietnam. The results reveal that five determinants influencing the personal income tax compliance of taxpayers with e-commerce activities, including economic factors, tax authority characteristics, social factors, personal factors and demographic factors. Based on the findings, several suggestions are proposed to enhance the personal income tax compliance of taxpayers with e-commerce business activities in order to improve the effectiveness of personal income tax management of e-commerce business activities.

Keywords: Tax Compliance, Personal Income, E-Commerce, Vietnam

Authors’ individual contribution: Conceptualization — T.H.N and H.T.L.T.; Methodology — T.H.N and H.T.L.T.; Validation — T.H.N and H.T.L.T.; Formal Analysis — T.H.N and H.T.L.T.; Investigation — T.H.N and H.T.L.T.; Resources — T.H.N and H.T.L.T.; Data Curation — T.H.N and H.T.L.T.; Writing — Original Draft — T.H.N and H.T.L.T.; Writing — Review & Editing — T.H.N and H.T.L.T.; Supervision — T.H.N and H.T.L.T.; Project Administration — T.H.N and H.T.L.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H24, H29, H31, G39

Received: 08.10.2024
Revised: 09.01.2025; 01.03.2025; 14.08.2025
Accepted: 12.09.2025
Published online: 16.09.2025

How to cite this paper: Nguyen, T. H., & Tran, H. T. L. (2025). Factors influencing personal income tax compliance of taxpayers with e-commerce business activities [Special issue]. Corporate & Business Strategy Review, 6(3), 411–422. https://doi.org/10.22495/cbsrv6i3siart17