Title: The Relationship of Tax Literacy and Tax Compliance Practices of Barangay Micro-Business Enterprises (BMBEs) in Selected Municipalities of Pampanga
Authors: Krista Marie D. Laxina
Gwyneth Hannah L. Hernandez
Jillan Burdah M. Ma?alac
Kal-el D. Sunga
Jason Y. Carreon
Alan Y. Cabaluna
Volume: 10
Issue: 7
Pages: 370-375
Publication Date: 2026/07/28
Abstract:
This study assessed the level and relationship of tax literacy and tax compliance among Barangay Micro-Business Enterprises (BMBEs) in selected municipalities of Pampanga. It assessed tax literacy in terms of information on tax obligation, knowledge of taxpayer rights, and awareness of tax incentives, also tax compliance in terms of registration, filing, and payment practices in the context of BMBEs. A descriptive-correlational design was used in the study to analyze the collected data from 103 BMBE respondents through survey. The data were analyzed using mean and standard deviation, Pearson's correlation, and regression analysis. Findings revealed that respondents generally have basic understanding of tax, however, their knowledge on specific provisions under the BMBE law is still limited. BMBEs are also aware of their rights but more emphasis is needed on procedural rights. Furthermore, while respondents know basic incentives, awareness on some support programs is relatively low. As to tax compliance, BMBEs are generally compliant in terms of registration, filing, and payment procedures although gaps are observed in the aspect of digital payment channels. Overall, the results indicated that tax literacy and tax compliance has a significant positive relationship among BMBEs in the selected municipalities of Pampanga.