Understanding Tax Compliance Intention among E-Commerce Entrepreneurs: Proposing a TPB-Based Framework

The rapid proliferation of e-commerce in Malaysia has reshaped the nation’s business environment, contributing to economic growth while simultaneously posing significant challenges to tax enforcement and compliance. Many e-commerce sellers, particularly those unregistered or informal, participate in the shadow economy, often evading tax obligations. This conceptual paper aims to examine the determinants influencing tax compliance intention among e-commerce sellers in Malaysia. Drawing upon the Theory of Planned Behavior (TPB), this paper proposes a framework linking tax knowledge, tax complexity, tax morale, and future tax cost to tax compliance intention. Through an extensive review of existing literature, this paper underscores the need for effective policy responses, taxpayer education programs, and enhanced enforcement strategies tailored to the digital economy. The proposed conceptual framework lays the groundwork for future empirical research to validate the relationships hypothesized herein.