LAUSR

Tax non-compliance phenomenon has become a key issue for developing countries such as Libya because it hinders taxpayers from contributing effectively to the economy. Previous literature refers to diverse socio-psychological factors that influence tax noncompliance behavior. Nevertheless, there is a lack of study on the influence of religious factors on tax non-compliance. Therefore, the current study empirically examines the impact of Islamic perspective and Islamic religiosity on tax non-compliance behavior among self-employed taxpayers in Libya. A quantitative method using a questionnaire is utilized to collect the data. Structural equation modeling was employed using PLS. This study provides empirical evidence that Islamic perspective and Islamic religiosity have a significant positive relationship with tax non-compliance among Libyan self-employed. Theoretically, the findings have extended the body of knowledge by providing empirical evidence on the effect of religious factors on tax non-compliance. Practically, the study provides fruitful insights for policymakers and government officials to consider these factors as crucial while formulating taxation policies to minimize the phenomenon of tax non-compliance among Libyan individual taxpayers and, hence, increase government revenue. Fareg Mustafa Abodher (Libya), Zaimah Zainol Ariffin (Malaysia), Natrah Saad (Malaysia)