AN ANALYSIS OF FACTORS AFFECTING TAX AWARENESS OF INDIVIDUAL BUSINESS HOUSEHOLDS IN DONG NAI PROVINCE

Abstract

This study examines the factors influencing tax awareness among individual household businesses in Dong Nai province, Vietnam, where informal economic activity remains prominent. The research aims to identify key psychological and institutional elements that affect tax awareness, thereby supporting improved tax compliance policies. A quantitative research method was employed, using a structured questionnaire distributed to 203 individual household businesses selected through stratified random sampling. Data were analyzed using SPSS 26.0, including exploratory factor analysis, correlation analysis, and multiple linear regression. The research model tested five independent variables: tax knowledge, attitude toward taxation, transparency of tax authorities, social influence, and support from tax authorities. The results show that all five factors have a statistically significant positive effect on tax awareness. Among them, transparency of tax authorities has the strongest impact (standardized coefficient = 0.418), followed by social influence (0.306), tax knowledge (0.209), support from tax authorities (0.195), and attitude toward taxation (0.104). The model explains 53.7 percent of the variation in tax awareness (R² = 0.537), with high statistical significance. These findings suggest that enhancing transparency, providing consistent support, and increasing tax literacy can substantially improve tax awareness among individual household businesses. The research provides empirical evidence to assist tax authorities in designing more targeted communication and educational programs, contributing to higher levels of voluntary compliance and a more sustainable tax system.