The influence factors of GST compliance intention among the small and medium enterprises in Malaysia

The RMCD is entrusted by the Ministry of Finance to administer all matters concerning GST, which was first introduced on 1 April 2015. It has been argued that the introduction of GST would bring many benefits to customers and businesses. This study aims to determine the influencing factors that encouraged taxpayers to meet their obligations in paying GST to the Government. Samples are taken from the business entities among the SMEs in Johor Bahru area which registered under the GST system. This is due to the fact that 95.3% of the GST-registered persons in Malaysia are from these business segments and thus meeting GST obligations mean increasing costs for them. Based on literature review, credible causal factors identified are deterrence measures, attitudes. subjective norms, perceptions of fairness of GST system and GST knowledge. This study utilised statistical survey method to expose high level of GST compliance intention among SMEs and also there is significant relationship between deterrence measures and attitudes with GST compliance intention among SMEs taxpayers. The findings in this paper will be beneficial for the use of enforcement body to tackle existing problems and mitigate the risk of tax evasion in the country.