UNDP Global Shared Services Centre
63000 Cyberjaya, Selangor, MALAYSIA.
Faculty of Accountancy
Universiti Teknologi MARA
Cawangan Selangor
Kampus Puncak Alam
42300 Bdr. Puncak Alam, Selangor, MALAYSIA.
School of Mathematical Sciences
College of Computing, Informatics and Mathematics
Universiti Teknologi MARA (UiTM) Cawangan Pahang
26400 Bandar Jengka, Pahang, MALAYSIA.
Universiti Kuala Lumpur Business School
Kuala Lumpur Campus
50250 Kuala Lumpur, MALAYSIA.
Abstract
In Malaysia, local governments are facing a decline in the collection of residential property assessment taxes, primarily attributable to an increase in non-compliance among residential property owners. As these taxes constitute over half of local government’s revenue, understanding the factors influencing tax compliance is imperative. This study examines the significant factors of tax compliance among residential property owners, including tax knowledge, awareness, morale, and penalties. Applying the theory of planned behaviour, this research investigates the behavioural patterns of residential property owners when fulfilling their residential property assessment tax obligations. Employing a quantitative approach, the questionnaires were distributed to residential property owners in Selangor, resulting in 108 valid responses. The findings reveal that tax awareness and morale significantly influence the willingness of residential property owners to pay residential property assessment taxes. However, no apparent relationship was found between tax knowledge and tax penalties toward tax compliance. These results suggest that local government authorities to devise robust compliance enforcement strategies and actively engage with residential property owners to reinforce tax collection. The implications of this study are substantial for future researchers and academicians, as they elucidate consistent factors influencing tax compliance among residential property owners, aligning with prior research in the field. These insights emphasise the need for local governments to develop more effective, taxpayer-friendly strategies to improve compliance rates, enhance revenue collection, and promote a culture of voluntary compliance among property owners.