Factors Affecting Tax Compliance of Enterprises During the Covid-19 Pandemic in Vietnam

Abstract

The fourth wave of Covid-19 outbreaks in Vietnam has caused severe impacts on life and economy in the southern region and the whole territory of Vietnam in general. Difficulties encountered in handling tax issues and determining associated transaction prices during the pandemic may create potential business risks in the upcoming tax audits/audits. Besides, Industry 4.0 has substantially impacted the application of innovative business solutions and breakthrough technologies to improve management capacity, automate business processes, and develop modern applications. Industry 4.0 helps make tax activities faster, convenient, and more efficient. Nowadays, computer network connects financial markets around the globe into a unified and continuously operating market. The main idea of the paper explored vital factors that contribute to overcoming obstacles in time and space, saving costs, and at the same time facilitating accounting transactions in general and tax accounting, in particular, to be done quickly, easily, and efficiently. Thus, the study's objective is to determine the factors affecting the tax compliance of enterprises in Vietnam, on that basis, to propose some policy implications to improve the tax compliance situation of enterprises. In addition, the authors applied the research method surveyed data collected from 750 tax staff working at enterprises and used structural equation modeling (SEM) by using SPSS 20.0. Amos software. The article's findings have revealed five factors affecting tax compliance of enterprises in the context of the digital economy with a significance level of 0.01, and all hypotheses are accepted. The research results help enterprises reshape business models, electronic payments, administration, accounting, tax declaration, and tax payment toward building intelligent applications in the future. Finally, the study's novelty proposed policy implications to improve the tax compliance of enterprises posts the Covid-19 pandemic in Vietnam.