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Analysis of the Effect of the Tax Electronic System on Tax Paying Behavior

Author

Listed:
  • Galmandakh Urlee

    (Graduate School of Business, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.)

  • Sumjidmaa Tumurchudur

    (The School of Business Administration and Humanities, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.)

  • Oyuntungalag Buyantur

    (The Graduate School of Business, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.)

Abstract

In 1992, Mongolia adopted a set of tax laws, defining the rights and obligations of tax authorities and taxpayers, and creating a new legal framework for tax relations. When transitioning to the new tax system, the system for taxpayers to determine self-assessment tax rates was introduced for the first time. Mongolia switched to the "Integrated Tax Administration System" or electronic system in 2021. According to Business registry statistics, a total of 220,000 enterprises were registered in 2023. However, only 35 percent of the registered enterprises did not submit tax reports and did not pay the reported taxes on time, indicating that tax compliance is not satisfactory among enterprises. Unfortunately, little has been studied in our country on tax compliance behavior and the factors affecting it. This study aims to analyze the effect of the tax electronic system on tax compliance behavior. Concerning the framework of the Theories of Reasoned Action and Planned Behavior an intention to pay taxes was considered as a mediating factor in the relationship of the electronic tax system and tax compliance behavior. The analyses confirmed that the tax electronic system influences tax compliance behavior through the intention to comply with taxes. Hence, motivation to increase the use of the tax electronic system may improve tax compliance behavior.

Suggested Citation

  • Galmandakh Urlee & Sumjidmaa Tumurchudur & Oyuntungalag Buyantur, 2024. "Analysis of the Effect of the Tax Electronic System on Tax Paying Behavior," International Journal of Science and Business, IJSAB International, vol. 37(1), pages 84-95.
    • Handle: RePEc:aif:journl:v:37:y:2024:i:1:p:84-95
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    References listed on IDEAS

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