Determinants of Self-Assessed Personal Income Tax Compliance: Evidence from Mongolia

The purpose of this study is to identify the factors influencing tax revenue collection under the self-assessment system of personal income tax in Mongolia. The study employs the BISEP model, which encompasses Business, Individual, Social, Economic, and psychological factors. Data were collected through a survey of 290 taxpayers in the Sukhbaatar District of Ulaanbaatar, and correlation and regression analyses were conducted. The results indicate that the most significant factors affecting tax revenue collection are the taxpayer’s financial condition and knowledge about taxation (R = 0.66, β = 0.46). In contrast, social and economic factors show relatively weak effects. The psychological aspects and perceptions of fairness among taxpayers were found to have a positive influence on taxpaying behavior. This research provides both theoretical and practical foundations for policymakers to strengthen the voluntary tax compliance system and enhance the effectiveness of tax policy implementation in Mongolia.