Applying the Theory of Planned Behavior to SME Tax Compliance: A Conceptual Literature Review and Firm-Level Framework

This conceptual review examines the applicability of the Theory of Planned Behavior (TPB) in understanding tax compliance behavior among small and medium enterprises (SMEs). While TPB has been widely applied to individual behavior, its extension to firm-level analysis remains limited. The study synthesizes existing literature to propose a firm-level framework that operationalizes TPB’s three constructs, namely attitude, subjective norms, and perceived behavioral control, within organizational and legal contexts. It integrates Malaysia’s statutory framework and emphasizes that firms express behavioral intentions through legally authorized representatives such as directors and managers. The findings indicate that TPB provides a coherent and adaptable framework for analyzing SME tax compliance when its constructs are interpreted through managerial attitudes, stakeholder expectations, and perceived resource control. The review highlights theoretical, practical, and methodological contributions by demonstrating TPB’s adaptability beyond individual agency and by offering policymakers insights into enhancing compliance through behavioral and institutional interventions. The study concludes by proposing directions for future empirical research to validate the conceptual framework of firm-level tax compliance behavior.

Theory of Planned Behavior; Tax Compliance Behavior

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