Evaluating Tax Compliance Cost on SME Performance in Vietnam
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Published
Feb 17, 2024
Dao Thi Dai Trang
https://orcid.org/0000-0002-0398-651X
Abstract
This study focuses on the burden of tax compliance of Small and Medium Enterprises (SMEs) in Vietnam which is a vital component of Vietnam economy, accounted for 45% GDP and 31% of total State budget revenue, attract more than 5 million employees. Based on a quick survey on the compliance cost and their impact on the performance of Vietnamese SMEs, we try to make a contribution not only for researchers but also for legal and taxation system to improve the transparency of accounting information system, internal control of the firms. The result of our study suggests that among those tax compliance cost in the SMEs: external, internal tax cost, and miscellaneous tax cost, the internal tax cost accounted for the major expenses in tax compliance in Vietnam, after that the miscellaneous tax cost also a significant cost for complying with tax regulation. External costs were evaluated at low percentage compared to the left component of tax procedure cost. With this result, study have shown some tax compliance cost type making burden for SME as well as evaluating issue in tax system in Vietnam.
How to Cite
Trang , D. T. D. . (2024). Evaluating Tax Compliance Cost on SME Performance in Vietnam. SPAST Reports, 1(2). Retrieved from https://spast.org/ojspath/article/view/20
Article Details
Keywords
compliance cost; internal cost; external cost; miscellaneous tax; tax procedure cost
References
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2. B. Le, Analyze the compliance cost with corporate income tax of small and medium enterprises in District 1 HCM city, University of Economics Ho Chi Minh city, 2014.
3. J.L. Turner, M. Smith, B. Gurd, Managerial Auditing Journal 13, 95(1998). https://doi.org/10.1108/02686909810202782
4. Circular 111/2013/TT-BTC, August 15, 2013, guidance on the implementation of the Law on Personal income tax | Circular 111/2013/TT-BTC, August 15, 2013, guidance on the implementation of the Law on Personal income tax Available online: Link
5. Circular 147/2016/TT-BTC amending 45/2013/TT-BTC management use depreciation fixed assets 2016 Available online: Link
6. Circular No. 26/2015/TT-BTC guidelines for value-added tax and tax administration No. 12/2015/ND-CP Available online: Link
7. Circular No. 39/2014/TT-BTC the Ministry of Finance on guiding the implementation of the Government’s Decree No. 51/2010/ND-CP of May 14, 2010, and Decree No. 04/2014/ND-CP of January 17, 2014, on goods sale and service provision invoices Available online: Link
8. Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the management, use and depreciation of fixed assets Available online: Link
9. Circular No. 78/2014/TT-BTC guiding Decree No. 218/2013/ND-CP guiding Law on enterprise income tax Available online: Link
10. Circular No. 92/2015/TT-BTC on guidelines for the Law on the amendments to tax Laws and Decrees on taxation Available online: Link
11. Circular No. 96/2015/TT-BTC guidelines for corporate income tax in Decree No. 12/2015/ND-CP Available online: Link
12. Circular No. 119/2014/TT-BTC amendments to Circular in order to simplify tax formalities Available online: Link
13. Circular No. 151/2014/TT-BTC on providing guidance No. 91/2014/ND-CP amendments to Decrees on taxation Available online: Link
14. Circular No. 219/2013/TT-BTC of the Ministry of Finance guiding the implementation of the Law on Value-Added Tax, Available online: Link
15. R. Fayle, D.L. Chen, J. Pope, The. Australian Tax Research Foundation Research Studies, 110(1994). Document
16. M. Hanefah, M. Ariff, J. Kasipillai, Compliance costs of small and medium enterprises. J. Austl. Tax’n, 4, 73(2002). Document
17. F. Chittenden, K. Saleema and P. Poutziouris, International Small Business Journal 21, 93 (2003). https://doi.org/10.1177%2F0266242603021001244
18. P. Chunhachatrachai, Corporate income tax compliance costs of small and medium enterprises in Thailand, Curtin University, 2013. http://hdl.handle.net/20.500.11937/1488
19. J. Pope, Revenue Law Journal 11, 6634(2001). Link
20. H. Abdul-Jabbar, Income tax non-compliance of small and medium enterprises in Malaysia: Determinants and tax compliance costs, Curtin University, 2009. http://hdl.handle.net/20.500.11937/2115
21. H. Abdul-Jabbar, J. Pope, New Zealand Journal of Taxation Law and Policy, Brookers Thomson publ. 15, 198(2009).
22. A. Hansford, J. Hasseldine, Tax compliance costs for small and medium sized enterprises: the case of the UK. eJTR 10, 288(2012). https://www.austlii.edu.au/au/journals/eJTR/2012/14.pdf
23. E. Eragbhe, K.P. Modugu, Tax compliance costs of small and medium scale enterprises in Nigeria. International Journal of Accounting and Taxation 2014, 2, 63–87. https://doi.org/10.15640/ijat.v6n2a4
24. B. Tran-Nam, C. Evans, M. Walpole, K. Ritchie, National Tax Journal, 53 229(2000). http://dx.doi.org/10.17310/ntj.2000.2.04
25. Babbie, E. The basic of social research. Belmont: Thompson 2005.
26. H. Abdul-Jabbar, J. Pope, Austl. Tax F. 23, 289(2008). http://hdl.handle.net/20.500.11937/12424
27. Sandford, C. The rise and rise of tax compliance costs. Tax compliance costs measurement and policy. The Institute for Fiscal Studies, Bath, UK: Fiscal Publications 1995.
28. P. Lignier, C. Evans, Proceedings of the Australian Tax Forum, 27, 615(2012). https://ssrn.com/abstract=2128418
29. A.J. Reid, Can Fam Physician, 42, 387(1996). http://www.ncbi.nlm.nih.gov/pubmed/8616275
30. OECD Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes, 2008. https://doi.org/10.1787/9789264040090-en
31. Viet Nam - Decree No. 56/2009/ND-CP of June 30, 2009, on assistance to the development of small- and medium-sized enterprises. Available online: Link
32. U. Sekaran, R. Bougie, Research Methods For Business: A Skill-Building Approach, 7th ed.; ISBN: 978-1-119-26684-6, John Wiley & Sons: Chichester, UK, 2016.
Section
Technical Reports