Factors Influencing Polytechnic Students’ Readiness to Comply with Taxes in the Future

Abstract

Tax awareness refers to the level of knowledge, understanding, and readiness of individuals to voluntarily carry out their responsibility of paying taxes to the state. High tax awareness is crucial to ensure the effectiveness of the taxation system in generating national revenue and reducing tax non-compliance among citizens. This study was conducted to assess tax awareness among polytechnic students by focusing on four independent variables: tax knowledge, attitude, the role of tax authorities, and tax morale. Data collection was carried out through a questionnaire distributed to 207 polytechnic students. The findings revealed that all independent variables had a positive relationship with the students’ level of tax awareness. Tax morale was found to be the most significant contributing factor in enhancing tax awareness, followed by the role of tax authorities, attitude, and tax knowledge. This study is expected to assist relevant authorities and the Lembaga Hasil Dalam Negeri (LHDN) in designing appropriate tax education strategies in polytechnics to produce tax-literate students who have a positive attitude toward fulfilling their tax obligations and are ready to become compliant taxpayers once they meet the required income threshold in the future. Overall, this research contributes to the literature on tax awareness among the younger generation and can serve as a reference for stakeholders in planning more effective tax education programs in Malaysia.