Trust in the Bureau of Internal Revenue, Tax Service Quality, and “SMEs’” Tax Compliance: A Philippine Systematic Scoping Review

Abstract

This study systematically examines the relationship between Tax Service Quality (TSQ), Trust in the Bureau of Internal Revenue (BIR), and tax compliance behavior among Small and Medium Enterprises (SMEs) in the Philippines. Drawing upon a review of 33 empirical studies published between 2003 and 2023, the research highlights the critical role of TSQ—encompassing responsiveness, reliability, clarity, and fairness—in reducing administrative burdens and facilitating accurate compliance. Simultaneously, trust in the BIR, reflected in perceptions of transparency, integrity, and institutional reliability, emerges as a key determinant of voluntary tax compliance. Evidence from the literature indicates that trust not only directly influences compliance but also strengthens the positive effects of service quality, suggesting a synergistic relationship between these variables. Contextual factors, including regulatory transparency, organizational readiness, and SMEs’ prior experiences, further moderate these relationships. The study integrates insights from the Theory of Planned Behavior (TPB) and Trust Theory to explain SMEs’ compliance behavior, emphasizing both cognitive and affective determinants. Findings underscore the need for targeted strategies that enhance service quality while building institutional trust, offering practical implications for policymakers and the BIR to promote voluntary, timely, and accurate tax compliance. This synthesis provides a foundation for future empirical research to develop evidence-based interventions that strengthen SME compliance and improve overall tax administration in the Philippine context.