The Acceptance of Digital Tax Administration among SMEs in Malaysia: The Application of UTAUT Model | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Muhammad Amiruddin Azizi Bin Salleh: UNITAR International University/ Faculty of Business,Selangor,

2. Wan Zurina Nik Abdul Majid: UiTM Cawangan Kelantan/Accounting, Malaysia

3. Marziana Madah Marzuki: UiTM Cawangan Kelantan/Accounting, Malaysia

4. Maheran Zakaria: UiTM Cawangan Kelantan/Accounting, Malaysia

5. Zulfahmy Ibrahim: Zulfahmy & Co,,Malaysia

Abstract:

To improve the tax system in Malaysia, the government is implementing electronic invoicing. Transparency will be promoted, and the Inland Revenue Board of Malaysia (IRBM) will receive a more precise compliance risk assessment due to this initiative. The Twelfth Malaysia Plan, which intends to enhance digital services infrastructure and digitise tax administration, is in line with the use of e-invoicing. SMEs have an enormous opportunity for growth as a result of this digitisation. Small businesses, however, are still trailing behind in this transformational initiative. In order to comprehend the acceptance of digital tax administration in Malaysian SMEs, this study will examine and apply existing models of technology adoption, particularly the Unified Theory of Acceptance and Use of Technology (UTAUT). The goal of this study is finding the elements that affect taxpayers' acceptance of digital tax administration. Data were collected from 102 SME taxpayers. The study adopts a quantitative approach and distributed questionnaires to all SMEs' top management. PLS 4.0 was used to analyse the data, and the study found that taxpayers' tendency to embrace digital tax administration is determined by social influence, facilitating conditions, performance expectancy, and effort expectancy. Furthermore, according to Importance-Performance Map Analysis (IPMA), the most significant factor influencing SME adoption of digital tax administration is performance expectancy. By determining the elements that influence Malaysian SMEs' support for tax administration, the study strengthens the theory. It further contributes to practicality by giving policymakers evidence, which guarantees that all SMEs in Malaysia will embrace digital tax administration.

Page(s): 5738-5748

DOI: 10.57239/PJLSS-2025-23.1.00449

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

UTAUT Model Digital Tax Administration Performance Expectancy Effort Expectancy Facilitating Condition Social Influence SMEs

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