The Perception of Cambodian toward the Future Implementation of Personal Income Tax

Abstract

The aim of this research was to investigate the determinants that affect the readiness of Cambodian citizens to pay personal income tax, should the General Department of Taxation decide to implement it in the future. The study utilized four latent variables, assessed through a total of fifteen manifest variables within the PLS-SEM framework. These variables included the perceived advantages of taxation, evaluated through six manifest variables; the degree of knowledge and comprehension regarding tax responsibilities, assessed with three manifest variables; the citizens' preparedness for the prospective introduction of personal income tax, measured by three manifest variables; and the willingness of taxpayers to adhere to such tax obligations, which was also gauged using three manifest variables. The measurement model satisfied the required criteria for both validity and reliability with regard to the indicators and variables. As indicated by the path analysis, all proposed hypotheses received support from the study.