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The influence of international standards on SME tax compliance in Vietnam

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  • Duy, Nguyen Vu
  • Tran, Tien Quang

Abstract

Few studies consider whether firms should use international standards as a means to combat tax evasion. Using a fixed-effect instrumental variable approach for data from Vietnamese SMEs in the 2011–15 period, this paper finds that the application of international standards certification boosts tax compliance from private SMEs in Vietnam. This effect derives from several mechanisms operating in such a way that certified firms are more likely to engage in export and innovation than non-certified firms. Also, adherence to international standards increases the likelihood that formal accounting records will be kept, reducing the payment of bribes.

Suggested Citation

  • Duy, Nguyen Vu & Tran, Tien Quang, 2021. "The influence of international standards on SME tax compliance in Vietnam," Finance Research Letters, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320307479
    DOI: 10.1016/j.frl.2020.101750
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