Assessing the level of awareness and compliance with the Ease of Paying Taxes (EOPT) Act among local eateries in Laoag City: Basis for compliance enhancement

Abstract

Generally, this study was conducted to formulate strategies to enhance compliance with the provisions of Ease of Paying Taxes (EOPT) Act among local eateries in Laoag City, Ilocos Norte, Philippines. Employing a descriptive-correlational research design, the study gathered data from 86 local eatery owners using a structured survey questionnaire. Statistical tools such as frequency count and percentage, weighted mean, binary logistic regression, and Pearson-r were utilized.

Findings revealed that respondents were slightly aware of the EOPT Act’s provisions. The degree of seriousness of problems encountered was rated very serious. While, the extent of compliance was generally low. Regression results indicated that awareness of withholding taxes significantly influenced compliance, while other areas did not. Furthermore, awareness and problem seriousness were significantly correlated, and problem seriousness significantly affected compliance.

The study concludes that awareness plays a crucial role in shaping compliance behavior, but greater awareness also heightens recognition of compliance barriers. Strengthening taxpayer education, enhancing access to accounting support, and fostering collaboration between the Bureau of Internal Revenue and local stakeholders are essential strategies to improve awareness and voluntary compliance with the EOPT Act among small and micro enterprises. Future research may expand to other cities or business sectors to allow comparative analysis and to assess the long-term impact of the EOPT Act on taxpayer behavior and compliance efficiency.