MEDIATING ROLE OF PERCEIVE EASE OF COMPLIANCE IN SMES’ SST COMPLIANCE BEHAVIOUR

This study examines the Sales and Service Tax (SST) compliance behaviour of Malaysian Small and Medium Enterprises’ (SMEs) by integrating social-psychological (Tax morale, Capability to manage, Perceived ease of compliance) and economic factor (Compliance Cost) within a conceptual framework grounded in established behavioural theories. Survey data from 103 SMEs, analysed using SmartPLS 4, reveal that tax morale, compliance cost, and perceived ease of compliance significantly influence SST compliance, whereas capability to manage tax does not. Perceived ease of compliance fully mediates the effect of managerial capability on compliance. This finding offers a valuable theoretical foundation for future research across diverse contextual settings. Given its status as a newly established relationship, it is poised to make a significant contribution to the existing body of literature on tax compliance behaviour, particularly within the Malaysian cultural context. The findings underscore the central importance of perceived ease of compliance in shaping SMEs’ SST compliance behaviour.