Factors affecting personal income tax planning toward the use of tax allowances to support domestic tourism

Abstract

This research aims to examine the factors influencing personal income tax planning through the utilization of tax deduction measures designed to promote domestic tourism. The population in this study comprises approximately 250,000 individual taxpayers expected to benefit from the tax incentives. The sample includes 419 taxpayers, among whom 175 have used the tax deduction measure. Data were analyzed using inferential statistical methods, including correlation analysis, logistic regression, and multiple regression. The results reveal that gender and general knowledge of personal income tax are negatively associated with the use of the tax deduction measure. Specifically, females are less likely to utilize the benefit compared to males, and individuals with greater general tax knowledge are also less likely to claim the deduction. In contrast, education level and positive taxpayer attitudes are positively associated with the use of the measure-taxpayers with higher education and a more positive attitude toward tax compliance are more likely to use the deduction than those with lower education levels or negative attitudes. Furthermore, among those who used the tax benefit, age, education level, and source of income are positively related to the amount of deduction claimed, whereas monthly income is negatively related. These findings provide valuable insights for designing tax policies that align with taxpayer behavior, particularly in developing effective communication strategies to improve understanding and proper utilization of tax benefits. The results also support relevant agencies in promoting the use of tax incentives to sustainably stimulate domestic tourism in the future.