BESHINCHI KENGASH. MILLIY IQTISODIYOTDA BARQAROR RIVOJLANISH: MOLIYAVIY TIZIM, INNOVATSIYALAR, TURIZM VA TADBIRKORLIKNI RIVOJLANTIRISHNING USTUVOR YOʻNALISHLARI

Compliance with tax regulations among small and medium-sized enterprises (SMEs) in Malaysia has long been a challenge, as reflected in the low submission rates of income tax return forms (ITRF). Although the Special Voluntary Disclosure Programme (SVDP) 1.0 was previously introduced, SMEs continue to struggle with complex tax issues, limited accounting resources, and a lack of awareness regarding regulatory requirements. This study seeks to address these challenges by examining the factors influencing SMEs’ intention to participate in SVDP 2.0, guided by the Theory of Planned Behavior (TPB). The study focuses on determining the relationships among the factors of attitude, subjective norms, tax knowledge, enforcement of penalties, and willingness to participate among SME owners in Malaysia’s Northern Region with regard to SVDP. A quantitative research approach was employed, using an online questionnaire distributed via Google Forms to SME owners in four states in Malaysia, which are located in the Northern region, i.e., Perlis, Kedah, Pulau Pinang, and Perak. A total of 276 valid responses were collected and analyzed using SPSS software (version 29). The findings reveal a strong inclination among SME owners in the northern region to participate in the SVDP to ensure tax compliance. It is supported that attitude, subjective norm, tax knowledge, and enforcement of penalties are significantly related to the intention to participate in SVDP among SMEs in the northern region. This highlights the need for tailored policies and support mechanisms to enhance engagement and compliance. This study contributes to the theoretical understanding of tax compliance behavior by addressing existing research gaps and offering practical recommendations. Implementing these strategies can foster a more supportive environment for SMEs to engage in voluntary disclosure initiatives, thereby strengthening overall tax compliance and contributing to sustainable economic growth.