TAX COMPLIANCE CHALLENGES ENCOUNTERED BY SMALL ENTERPRISES IN LIPA CITY

Compliance across all taxes is becoming increasingly complex. Companies are struggling to do more with less while driving value out of their tax and finance functions. With this, the study attempted to determine the tax compliance challenges by small enterprises in Lipa City. The study utilized descriptive method of research design among 80 registered small businesses in Lipa City. The result from the questionnaire was tallied, analyzed, and interpreted through the use of statistical tools such as frequency and percentage, weighted mean, analysis of variance, and T-test. The researchers found out that most of the small businesses are merchandising, sole proprietorship, operating 10 years and above, have 10 – 20 employees, have an initial capital of Php 3,000,000 – Php 5,000,000, an average annual income of Php 1,000,000 – Php 3,000,000, and mostly are furniture and home appliances. Also, the researcher found out that tax rate, filing procedure, and taxation is a challenge. The study revealed that in terms of nature of business and in terms of business organization, there is a significant difference in all factors. While in terms of years of existence, average annual income and product/ service offered, there's a significant difference only in taxation. Capitalization, in terms of tax rate and taxation has a significant difference. Lastly, there is no significant difference in terms of number of employees in all factors. The researchers presented an implication of the results of the study to the local government of Lipa City.