A Substantive Theory Explaining Namibian Employers’ Tax Compliance Behaviour towards Employee Taxes

Zelda van der Walt, Marina Bornman and Grietjie Verhoef
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Zelda van der Walt: Faculty of Commerce, Human Sciences and Education, Namibia University of Science and Technology, Namibia
Marina Bornman: College of Business and Economics, University of Johannesburg, South Africa
Grietjie Verhoef: College of Business and Economics, University of Johannesburg, South Africa

International Journal of Research and Scientific Innovation, 2025, vol. 12, issue 3, 151-166

Abstract: Studies on tax compliance behaviour seek to identify the key determinants and frameworks for the compliance decision. These studies primarily explain the compliance decisions of tax-liable persons regarding their own taxes. However, compliance behaviour relating to employers’ withholding and remitting employees’ taxes may be more complex than the conduct of individuals regarding their own taxes. Few studies have investigated the compliance decisions of employers regarding withholding and remitting taxes on behalf of employees. In this study, using a grounded theory (GT) approach, a systematic analysis of Namibian employers in micro, small and medium enterprises (MSMEs) attitude towards employee taxes forms the basis for developing a substantive theory explaining employers’ compliance behaviour regarding their statutory obligation towards employee taxes. The results show that employers’ compassion towards employees, moral values, upbringing and religion, lack of tax knowledge, and the power of the tax authority are the core variables influencing their compliance decisions. These results advance the understanding of employers’ compliance behaviour and may assist tax authorities’ efforts in encouraging compliance behaviour towards employee taxes.

Date: 2025
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