Behavioural insights into tax compliance among the M40 group in Selangor

This study examines the factors influencing tax compliance behavior among the M40 income group in Selangor, focusing on tax knowledge, peer influence, and tax ethics as key determinants. The primary objective is to explore the relationship between these factors and tax compliance behavior. Data were collected through an online questionnaire distributed to respondents within the M40 demographic, with a sample size determined using established sampling methods. The survey measured demographic information, perceptions of tax compliance behavior, tax knowledge, peer influence, and tax ethics. The findings indicate that tax knowledge, peer influence, and tax ethics all have significant positive relationships with tax compliance behavior. Higher levels of tax knowledge and stronger ethical values are associated with better compliance, while peer influence also plays a notable role in shaping tax behavior. These results suggest that enhancing tax education, promoting ethical standards, and leveraging positive peer influence can effectively improve tax compliance among the M40 group. The study provides insights for policymakers and tax authorities to develop strategies aimed at encouraging greater compliance through education, ethics, and social initiatives.