Factors Affecting Tax Compliance Among Household Businesses in the Context of Digital Transformation in Vietnam’s Northern Central Highlands

Hang Nguyen

doi:10.56201/jafm.vol.12.no10.2026.p499.515

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Factors Affecting Tax Compliance Among Household Businesses in the Context of Digital Transformation in Vietnam’s Northern Central Highlands

Hang Nguyen

Abstract

Tax compliance among household businesses has become increasingly important in the context of digital transformation, particularly as tax administrations adopt digital technologies to improve the efficiency, transparency, and accessibility of tax-related services. However, household businesses may face persistent challenges arising from differences in tax knowledge, digital capabilities, perceptions of fairness, and trust in tax authorities. This study examines the factors influencing tax compliance among household businesses in the Northern Central Highlands of Vietnam. Drawing on the Theory of Planned Behavior and the Slippery Slope Framework, the proposed research model investigates seven determinants: tax attitude, perceived behavioral control, trust in tax authorities, perceived tax enforcement, perceived tax fairness, tax knowledge, and digital tax capability. The study adopts a quantitative research design using a structured questionnaire and partial least squares structural equation modeling (PLS-SEM) to examine the relationships between these factors and tax compliance. In the illustrative results presented in the research demo, all seven factors exhibit positive and statistically significant relationships with tax compliance. Tax knowledge, digital tax capability, and perceived behavioral control show comparatively stronger effects. These preliminary findings suggest that improving tax compliance requires more than enforcement alone; it also involves strengthening taxpayers’ knowledge, enhancing their capacity to use digital tax services, and supporting their ability to fulfill tax obligations independently. The study provides a proposed analytical framework for understanding household business tax compliance in the Northern Central Highlands and offers practical implications for designing more accessible, equitable, and taxpayer-oriented digital tax administration policies.

Keywords

household businesses; tax compliance; digital transformation; tax knowledge; digital tax capability; perceived behavioral control; Northern Central Highlands of Vietnam.

References

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Factors Affecting Tax Compliance Among Household Businesses in the Context of Digital Transformation in Vietnam’s Northern Central Highlands

Abstract

Keywords

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