Determinants of Tax Compliance Among Micro Food Businesses in Cavite, Philippines
DOI:
https://doi.org/10.11594/ijmaber.07.01.31Keywords:
Tax compliance, Tax law enforcement, Tax modernization, Fairness of Tax System, Cost of Compliance, Developing EconomiesAbstract
The study focused on addressing existing gaps in the literature by examining the extent of perceived factors that influence the tax compliance of micro food businesses in selected areas of Cavite. It aimed to (1) determine the business profile of micro food businesses in selected areas of Cavite, (2) identify the level of perception of each of the perceived factors such as tax literacy and awareness, enforcement of tax laws, tax modernization, perception of the tax system, and cost of compliance, (3) examine the level of tax compliance, and (4) assess the effect of perceived factors on tax compliance of the participants. In this quantitative study, descriptive and explanatory research designs were used. The study utilized survey questionnaire answerable using a four-point Likert scale. A sample size of 385 was obtained using a proportionate stratified sampling technique, descriptive statistics and regression analysis were applied to interpret the collected data.
Level of tax compliance, showed an overall mean of 3.19 and a standard deviation of 0.64. The determinants of tax compliance among micro food businesses in Cavite found that tax literacy, perceived enforcement of tax laws, tax modernization, perception of tax system fairness, and cost of compliance positively affects compliance.
Findings revealed that tax literacy and awareness, improved implementation and enforcement of tax laws, enhanced tax system modernization, and the financial and procedural efforts associated with taxation significantly influence tax compliance among micro food businesses.
Downloads
References
Abdu, E., & Adem, M. (2023). Tax compliance behavior of taxpayers in Ethiopia: A re-view paper. Cogent Economics & Finance, 11(1). https://doi.org/10.1080/23322039.2023.2189559
Adhikara, M. A., Maslichah, M., Diana, N., & Basyir, M. (2022). Taxpayer compliance determinants: Perspective of theory of planned Behavior and Theory of attribu-tion. International Journal of Business and Applied Social Science, 8(1), 34–42. https://doi.org/10.33642/ijbass.v8n1p4
Ajzen, I. (1991). The theory of planned behav-ior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-t
Amina, B., & Sara, M. (2024). Tax evasion and its effects on development: A systematic review of current issues and future solu-tions. The International Tax Journal, 51(6), 231–239. https://internationaltaxjournal.online/index.php/itj/article/view/31
Arce, A. J. A., Gungon, C. A., & Pañares, M. V. S. (2022). The Influence Of Tax Knowledge On Tax Compliance Behavior Of Micro, Small And Medium Enterprises In Laguna. Malayan Colleges Laguna. https://librarythesis.mcl.edu.ph/133F65u870l4l2/ACT_Arce_03029_The%20Influence%20of%20Tax%20Knowledge%20on%20Tax%20Compliance%20Behavior%20of%20MSMEs%20in%20Laguna.pdf
Avecilla, J. F., Villalobos, S., Ferolino, S. L., Cariño, J. M., Elbancol, L., Fayusal, N. A., Ealdama, D., & Edejer, K. (2024). Factors Influencing Tax Compliance Among Mi-cro and Small-Sized Enterprises in Masinloc, Zambales. Proceeding Interna-tional Collaborative Conference on Multi-disciplinary Science, 1(2), 173–197. https://doi.org/10.70062/iccms.v1i2.47
Banayo, K. M., & Pasco, R. (2025). Tax compli-ance behavior of registered single pro-prietors in Revenue District Office 55, East Laguna. Pantao, International Jour-nal of the Humanities and Social Sciences, 4(2), 2314-2328. https://doi.org/10.69651/pijhss0402215
Bhandari, H. B., Dhungana, G., & Sayyida, S. (2025). Factors Affecting Tax Compliance Among Small Business Enterprises: Evi-dence from Pokhara Valley. PERFOR-MANCE : Jurnal Bisnis & Akuntansi, 15(1), 119-131. https://doi.org/10.24929/feb.v15i1.4168
Cain, J. (2020). Measures of Tax Compliance among Small and Medium Enterprises in Tagum City: an Exploratory Factor Analy-sis. International Journal of Business Management and Technology, 5(2), 35-44. https://www.researchgate.net/publication/372418187_Measures_of_Tax_Compliance_among_Small_and_Medium_Enterprises_in_Tagum_City_an_Exploratory_Factor_Analysis
Capales, K. J. S. (2018). Unlocking the BIR’s ‘Oplan Kandado’ program. PwC. https://share.google/Nxyn21rjUPJ4NzHls
Cervantes, B., Rendon, J. E., Balogo, J. R., Maistodo, J., & Recitas, N. G. (2025). Tax Knowledge and Tax Compliance Among Business Owners: A Correlational Study. Asian Journal of Education and Social Studies, 51(7), 1364-1379. https://doi.org/10.9734/ajess/2025/v51i72215
Chandra, N., Halwi, M., Masdar, R., Tampang, Din, M., Mapparessa, N., & Meldawati, L. (2021). The Effect of Tax Payer Aware-ness, Taxation Knowledge and the Im-plementation of Modern Tax Administra-tion System on Taxpayer Compliance. Ad-vances in Economics, Business and Man-agement Research, 163, 159-162. https://doi.org/10.2991/aebmr.k.210220.028
Chelangat, S. (2023). Factors influencing Vol-untary Tax Compliance Among Small and Medium sized Enterprises in Kenya. Afri-can Journal of Commercial Studies, 3(3), 164-172. https://doi.org/10.59413/ajocs/v3.i3.3
Chepkorir, A. L. (2022). Factors Affecting Tax Compliance among Small and Medium Enterprises in Embakasi East Region, Nairobi, Kenya. Kenya School of Revenue Administration. https://ikesra.kra.go.ke/server/api/core/bitstreams/abbf8f0b-e1c0-45e9-8f80-a5bf31cbc7fa/content
Cureg, A. G., Larida, A. A. P., Mangili, H. M. N., Madroñal, C. D., Santos, B. L. B., & Mania, J. R. (2024). Determining the level of tax awareness and factors affecting tax com-pliance of Ready-to-Wear businesses in Solano, Nueva Vizcaya 3709. Interna-tional Journal of Research and Innovation in Social Science, VIII(IV), 797–823. https://doi.org/10.47772/ijriss.2024.804059
Delia, D., & Rhadi, R. (2025). The influence of awareness, knowledge, and environmen-tal culture on MSME tax compliance with tax administration modernization and tax incentives as moderating variables. Educoretax, 5(6), 725–729. https://doi.org/10.54957/educoretax.v5i6.1633
Department of Finance. (2024). BIR ramps up tax compliance and enforcement drives in 2023, results in higher collection perfor-mance. Department of Finance. https://www.dof.gov.ph/bir-ramps-up-tax-compliance-and-enforcement-drives-in-2023-results-in-higher-collection-performance
Department of Trade and Industry. (2025, No-vember 15). BN Statistics. https://bnrs.dti.gov.ph/resources/bn-statistics
Farida, A., & David, W. (2018). Tax costs and tax compliance behaviour in Kenya. Jour-nal of Accounting and Taxation, 10(1), 1–18. https://doi.org/10.5897/jat2017.0283
Fauziyah, A. S., Hapsari, I., Hariyanto, E., & Pandansari, T. (2025). The Effect of Mod-ernization of the Tax Administration Sys-tem and Tax Sanctions on Individual Tax-payer Compliance of Free Workers with Tax Socialization as a Moderating Varia-ble. Formosa Journal of Multidisciplinary Research, 4, 3083-3100. https://doi.org/10.55927/fjmr.v4i7.311
Fjeldstad, O., Schulz-Herzenberg, C., & Sjursen, I. H. (2012). Peoples’ views of taxation in Africa: A review of research on determi-nants of tax compliance. CMI – Chr. Mi-chelsen Institute. https://www.cmi.no/publications/4577-peoples-views-of-taxation-in-africa
Granfon, J. A., Lagare, W. N. J. D., Aling, D. A., Dangcalan, N. B. D., & Ebanay, A. A. (2023). Factors Affecting Tax Compliance of MSMEs in Dipolog City. International Journal of Multidisciplinary: Applied Busi-ness and Education Research, 4(4), 1350-1364. https://doi.org/10.11594/ijmaber.04.04.29
Guirgen, K. M. S., & Habunal, J. A. S. (2018). Feasibility study of a food kiosk at univer-sity belt of Iloilo Science and Technology University. (Unpublished master’s special paper). Central Philippine University, Ja-ro, Iloilo City. https://repository.cpu.edu.ph/handle/20.500.12852/1626
Hardika, N. S., Wicaksana, K. A. B., & Subratha, I. N. (2021). The impact of tax knowledge, tax morale, tax volunteer on tax compliance. Advances in Social Sci-ence, Education and Humanities Re-search/Advances in Social Science, Educa-tion and Humanities Research, 544. https://doi.org/10.2991/assehr.k.210424.020
Hia, A., Lahagu, A., Laoli, E. S., & Telaumbanua, W. A. (2024). Analysis of Micro Business Marketing Strategy in Facing Competi-tion. Golden Ratio of Data in Summary, 4(2), 596–607. https://doi.org/10.52970/grdis.v4i2.642
Hidayati, B., Utami, I. S., Hermanto, F. Y. (2023). Tax Knowledge and Appropriate Tax Technology on Tax Compliance: Study on MSME in Batam City. Interna-tional Journal of Economics, Management, Business and Social Science (IJEMBIS), 3(3), 1154–1163. https://www.researchgate.net/publication/382461692_Tax_Knowledge_and_Appropri-ate_Tax_Technology_on_Tax_Compliance_Study_on_MSME_in_Batam_City
Ingutali, S. Y., & Muhyarsyah, M. (2025). The influence of tax knowledge, tax digitaliza-tion and tax service quality on MSME Taxpayer Compliance (MSME taxpayers in the creative industry sector in East Ja-karta). Formosa Journal of Science and Technology, 4(8), 2573–2592. https://doi.org/10.55927/fjst.v4i8.193
Jankeeparsad, R. W., Jankeeparsad, T. R., & Nienaber, G. (2016). Acceptance Of The Electronic Method Of Filing Tax Returns By South African Taxpayers: An Explora-tory Study. Journal of Economic and Fi-nancial Sciences, 9(1), 120-136. https://doi.org/10.4102/jef.v9i1.33
Jefriyanto, J., Masril, M., & Kurniawan, B. P. (2022). Factors affecting the Micro, Small, and Medium Enterprises (MSME) on tax compliance: Online shop owners. Strategic Journal of Management Scienc-es, 2(2), 54. https://doi.org/10.37403/strategic.v2i2.58
Josua, R., & Ismail, H. (2025). The effects of modernization of system tax Administra-tion, Tax-Socialization, Trust in Tax-Authority on tax compliance mediated by taxpayer awareness. International Jour-nal of Research and Innovation in Social Science, 2643–2657. https://doi.org/10.47772/ijriss.2025.909000226
Kenton, W. (2025). Understanding Kiosks: defi-nition, history, types, and business risks. Investopedia. https://www.investopedia.com/terms/k/kiosk.asp
Kwok, B. Y. S., & Yip, R. W. Y. (2018). Is Tax Education Good or Evil for Boosting Tax Compliance? Evidence from Hong Kong. Asian Economic Journal, 32(4), 359–386. https://doi.org/10.1111/asej.12163
Malau, D. N., Lasmini, L., & Trisyanto, A. (2025). The influence of taxpayer knowledge and tax awareness on compli-ance must tax for perpetrator MSMES in East Kara-wang District, Karawang Re-gency. International Journal of Economics and Management Research, 3(2), 423–433. https://doi.org/10.55606/ijemr.v3i2.587
Mambori, G. L. (2020). Factors Affecting The Tax Compliance Of Small-Scale Traders In Voi Sub-County, Kenya. Kenya School of Revenue Administration. https://ikesra.kra.go.ke/server/api/core/bitstreams/4fadfc77-f21f-4a63-b9b4-a03eeea46997/content
Manalo, J. C. C., Mariano, L. S. N., Unas, J. E. L., & Yrastorza, J. S. C. (2025). Beyond Tax Enforcement: An Experimental Survey on the Role of Trust and Power on Tax Com-pliance in the Philippines. https://doi.org/10.13140/RG.2.2.17239.59046
Manaye, M. K. (2018). Determinants of Tax-payers’ Voluntary Compliance with Taxa-tion: The Case of Wolaita Sodo and Ter-cha Town in Dawuro Zone. Global Journal of Management and Business Research: D Accounting and Auditing, 18(3), 25-41. https://globaljournals.org/GJMBR_Volume18/4-Determinants-of-Taxpayers-Voluntary-Compliance.pdf
Mandasari, N. (2024). The effect of tax digitali-zation (Electronic system) on increasing individual taxpayer compliance. Advances in Taxation Research, 2(3), 153-167. https://doi.org/10.60079/atr.v2i3.62
Mardiyah, A., Salmavira, A., & Inasius F. (2025). Voluntary versus enforced tax compliance: Empirical evidence from dig-ital-based freelancers. Edelweiss Applied Science and Technology, Learning Gate, 9(7), 622-635. https://doi.org/10.55214/25768484.v9i7.8685
Mas-Montserrat, M., Colin, C., Ribault, E., & Brys, B. (2023). The design of presump-tive tax regimes. In OECD Taxation Work-ing Papers. https://doi.org/10.1787/141239bb-en
Matshona, Z., Sibanda, M., & Phesa, M. (2024). Tax knowledge and tax behaviour of in-dividual taxpayers in South Africa: A scoping review. International Journal of Economics and Financial Issues, 14(5), 299–316. https://doi.org/10.32479/ijefi.16149
Mebratu, A. A. (2024). Theoretical foundations of voluntary tax compliance: evidence from a developing country. Humanit Soc Sci Commun, 11, 443. https://doi.org/10.1057/s41599-024-02903-y
Mendenueta, R. (2025, April 10). Understand-ing tax compliance in the Philippines. Manila Bookkeepers. https://manilabookkeepers.com/blog/understand-tax-compliance-philippines/
Michael, M. M., Widjaja, W. W., Sabil, S. S., & Wijayadne, D. R. W. (2025). Interaction of Tax Awareness, Attitude, and E -Tax Adoption in Improving Tax Compliance: A Study in Indonesia MSMEs. Global Busi-ness & Finance Review, 30(8), 121–135. https://doi.org/10.17549/gbfr.2025.30.8.121
Muthinji, J. (2022). Factors Affecting Turnover Tax Compliance Among Micro Small and Medium Enterprises in Roysambu, Nairo-bi. African Tax and Custom Review, 5(2), 33. https://atcr.kra.go.ke/index.php/atcr/article/view/97
Myburg, J., & Schutte, D. (2025). SMMEs’ busi-ness mindset on tax compliance in North West: Perceptions and challenges. The Southern African Journal of Entrepre-neurship and Small Business Manage-ment, 17(1). https://doi.org/10.4102/sajesbm.v17i1.1085
Nguyen, H. T. (2021). Factors affecting tax compliance of small and medium enter-prises in Hung Yen province, Vietnam. Accounting, 8(2), 111–122. https://doi.org/10.5267/j.ac.2021.7.010
Nguyen, T. T. H., Bui, T. T. T., & Dang, A. T. (2025). Tax knowledge and tax compli-ance of the small and medium enterprises in Vietnam. International Journal of Inno-vative Research and Scientific Studies, 8(1), 886-898. https://doi.org/10.53894/ijirss.v8i1.4433
Obodoechi, E. U., & Mbobo M. E. (2024). Effect of Tax Compliance Costs on Tax Evasion by Small and Medium Enterprises. Inter-national Journal of Research and Innova-tion in Social Science (IJRISS), 8(9), 1545-1562. https://doi.org/https://dx.doi.org/10.47772/IJRISS.2024.8090126
Oladele, R., Aribaba, F. O., Ahmodu, A. L. O., Yusuff, S. A., & Alade, M. (2019). Tax En-forcement Tools and Tax Compliance in Ondo State, Nigeria. Academic Journal of Interdisciplinary Studies, 8(2), 27-38. https://doi.org/10.2478/ajis-2019-00138
Pangestuti, D. F. R., & Romadhona, F. B. (2024). Determinants of Micro Small Me-dium Enterprises (MSMEs) tax compli-ance. Jurnal REKSA Rekayasa Keuangan Syariah Dan Audit, 11(1), 74–89. https://doi.org/10.12928/jreksa.v11i1.10694
Paulite, S., & Espiritu, M. (2025). Assessing the financial challenges of food businesses in Gumaca, Quezon: a foundation for strate-gic Growth and Sustainability. Psychology and Education a Multidisciplinary Jour-nal, 36(3), 342–366. https://doi.org/10.70838/pemj.360309
Perveen, N. N., & Ahmad, N. A. (2022). Tax Technology, Fairness Perception and Tax Compliance among Individual Taxpayers. Audit and Accounting Review, 2(2). https://doi.org/10.32350/aar.22.05
Putri, A., & Ginting, W. (2024). KPP Tegallega Bandung’s Individual Taxpayer Compli-ance: The Impact of Tax Administration Modernization, Tax Knowledge, and Tax Sanctions. eCo-Buss, 7(1), 743-755. https://doi.org/10.32877/eb.v7i1.1590
Rinaldi, A., & Devi, Y. (2021). Mathematical modelling for awareness, knowledge, and perception that influence willpower to pay tax using multiple regression. Journal of Physics Conference Series, 1796(1), 012062. https://doi.org/10.1088/1742-6596/1796/1/012062
Saldajeno, D. A., & Sarita, A. N. (2025). Drivers of Tax Non-Compliance: Systematic Re-view of Evasion and Avoidance. Journal of Economics, Management and Trade, 31(6), 177–185. https://doi.org/10.9734/jemt/2025/v31i61308
Sentanu, I. N. W., & Budiartha, K. (2019). Effect of taxation modernization on tax compli-ance. International Research Journal of Management, IT and Social Sciences, 6(4), 207–213. https://doi.org/10.21744/irjmis.v6n4.683
Sison, J. G., Sison, J. E., & Agustin, N. (2025). Tax compliance in microenterprises: A basis for strategic plan. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5253557
Slemrod, J. (2019). Tax Compliance and En-forcement. Journal of Economic Litera-ture, 57(4), 904–954. https://doi.org/10.1257/jel.20181437
Sonny, S., Firmansyah, A., & Trisnawati, E. (2025). The effect of tax knowledge and tax awareness on taxpayer compliance with e-filing as a moderating variable. Educoretax, 5(6), 843–855. https://doi.org/10.54957/educoretax.v5i6.1696
Syamsudin, H. S., Damayanti, R. A., & Fattah S.. (2023). Exploring of Tax Compliance: Tax Practitioners Interpretation. Jurnal Mul-tidisiplin Madani, 3(2), 392–403. https://doi.org/10.55927/mudima.v3i2.2209
Tjaraka, H., & Putra, E. (2020). Tax Law En-forcement In Strengthening Tax Compli-ance Behavior Of Individual Taxpayers. Jurnal Akuntansi, 24(1), 154–168. https://doi.org/10.24912/ja.v24i1.664
Umali, O. S. (2024). Tax Literacy and Tax Com-pliance of the Selected Micro Business in Cabuyao City. International Journal of Multidisciplinary and Current Education-al Research, 6(3), 333-363. https://www.ijmcer.com/wp-con-tent/uploads/2024/06/IJMCER_Y0630333363.pdf
Valerian, K. F. (2023). Analysis of Factors Influ-encing Tax Compliance and Non-Tax Compliance Among Small & Medium En-terprises: A Case of Tanga Region. http://repository.iaa.ac.tz:8080/xmlui/bitstream/handle/123456789/2548/VALERIAN%2C%20Kavishe.%20F.pdf?sequence=1
Widuri, R., & Irawan, W. (2019). Tax justice perception and trust in government on tax compliance. Proceedings of the Inter-national Conference on Tourism, Econom-ics, Accounting, Management, and Social Science (TEAMS 19). Atlantis Press. https://doi.org/10.2991/teams-19.2019.20
Ya’u, A., Miraz, M. H., Saad, N., Bala, H., Rangasamy, D., Olaniyi, O. N., & Mus-tapha, U. A. (2023). Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector. International Journal of Energy Economics and Policy, 13(5), 289–302. https://doi.org/10.32479/ijeep.14736
Downloads
Published
Issue
Section
Categories
License
Copyright (c) 2026 Aeriel Louh Reign V. Banaag, Florindo C. Ilagan, Elizabeth D. Bigalbal, Dolores L. Aguilar, Maria Cristina L. Desepida, Jaysi T. Corpuz, Tricia Claire D. Apostol, Queen Aizaell P. Ramos, Princess Mae D. Tan, Nobel Victoria S. Cruz, Lyka Mae P. Quite, Hannah Nicole G. Valencia, Aeron Charles H. Casiño, Rowena R. Noceda
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
