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Determinants Of Monthly Tax Deduction (mtd) Non-compliance Among Smes In Malaysia
Monthly Tax Deduction (MTD) was implemented in January 1995. It is a system of tax collection, whereby the employers deduct certain amount from the employee's monthly remuneration by referring to the Schedule of Monthly Tax Deduction. It is compulsory for the employers and employees to comply with this matter. However, based on the Annual Report 2012 to 2016 of IRBM, the statistics of MTD audit shows the number of non-compliant employers kept rising over the past five years. Hence, this study aims to examine the determinants of MTD non-compliance among SMEs in Malaysia. SMEs are chosen as the target respondents since it represent the largest population of all the companies in Malaysia.
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