Factors influencing tax compliance among selfemployed in Selangor, Malaysia

Convincing taxpayers to comply with the tax regulations has been the main challenge of Malaysian authority. Tax component from individual taxpayers is the second largest contributor to Government tax revenue. Therefore, the main purpose of this study was to examine the factors influencing tax compliance among self- employed in Malaysia. This study examined four independent variables namely attitude of taxpayers, tax knowledge, tax compliance cost and public governance quality towards tax compliance. A total of 75 useable surveys were received from self-employed around Selangor state. Four hypotheses were tested in this study using multiple regression analysis. The results indicate that attitude of taxpayers, tax knowledge and tax compliance cost have positive relationship with tax compliance among self-employed in Selangor, whilst public governance quality does not have a significant relationship with tax compliance. The results of the study provide valuable understandings to Inland Revenue Board of Malaysia, the government in general and self-employed in Malaysia. Besides that, this study can serve as a basis for academics and researchers on more detailed information and understanding regarding the elements that might impact tax compliance among self-employed people. This study adds the knowledge base by focusing on factors that could enhance tax compliance among self-employed taxpayers by decreasing the tax collection cost and increasing the rate of voluntary compliance in Malaysia.