A Study about Economic and Non-Economic Factors Influencing Self-Employed Taxpayers’ Tax Compliance Behaviours in Kuala Lumpur, Malaysia

The aim of this paper is to study tax compliance behavior of self-employed taxpayers in Kuala Lumpur, Malaysia and how economic factors of inflation and tax rates as well as non-economic factors of tax knowledge and tax deterrence could influence compliance behavior. Basically, those previous studies have merely focus on small and medium enterprises and less of them conduct the relevant research on self-employed population in Malaysia. Simple random sampling technique is adopted and there were 150 of self-employed taxpayers had randomly selected from Kuala Lumpur to participate in this study. Questionnaire survey was conducted through online distribution method. Hypothesis testing is carried out with the implementation of Multiple regression and Pearson correlation analysis. The results from regression analysis revealed that tax rate and tax deterrence have significant relationship with tax compliance behavior of self-employed taxpayers. However, the regression analysis indicates that inflation and tax knowledge are insignificant to compliance behavior. The findings in this paper are supported by other studies in literature reviews in Chapter 2.