Explaining Tax Compliance Behavior Among Start-Up Owners in General Santos City, Philippines: The Role of Tax Knowledge

Abstract

This study examines the relationship between tax knowledge and tax compliance behavior among start-up business owners in General Santos City, Philippines. Anchored on the Slippery-Slope Framework, the study adopts a quantitative, descriptive–correlational research design to determine whether taxpayers’ level of tax knowledge significantly influences their compliance behavior. Data were collected from 540 start-up business owners classified as “New Businesses” by the city’s Business Permits and Licensing Office using a validated and modified survey questionnaire. Descriptive statistics and Spearman's rank correlation were used for data analysis. Findings reveal that respondents possess a moderate level of tax knowledge and a very high level of tax compliance behavior. Results further indicate a positive, though statistically insignificant, relationship between tax knowledge and tax compliance behavior, suggesting that while tax knowledge contributes to compliance, it is not the sole determinant of compliance behavior. The study underscores the importance of strengthening tax education initiatives tailored to start-up enterprises to enhance voluntary and sustainable tax compliance.