Tax Compliance among the Business Sectors in Baguio City

A descriptive research study was conducted in Baguio City to determine the level of compliance of its business sector towards BIR’s tax laws and regulations, with the objective of evaluating their compliance behavior as business taxpayers through identifying their user satisfaction, compliance procedures, and systems’ challenges they encounter. This research study is purely quantitative, with 255 sample business respondents in Baguio City classified under the four business sizes, with online and manual BIR system users. The survey aimed to examine the users’ experiences with both systems. To meet the research objective, statistical procedures were applied, like the computation of weighted means for each level of category and the analysis of variance (ANOVA). The results showed that taxpayers exhibited a moderate level of satisfaction with tax services, demonstrated high compliance with tax laws and regulations, and encountered moderate challenges in using both systems. Notably, significant differences in the level of compliance were found when taxpayers were grouped according to business size and years of operation. The findings suggest that taxpayer education and support programs, as well as improvements to tax filing and payment systems, are necessary to enhance compliance and address challenges encountered by business taxpayers.