Work

The five-factor model of personality and tax compliance intention: an analysis of social media-based online traders in Tanzania

Year: 2026

Type: article

Abstract: The rapid expansion of social media-based trading in Tanzania has created significant opportunities for economic growth, but it also poses substantial challenges for tax compliance, as traditional deterrence models prove insufficient in this digital environment. Addressing the gap in understanding psychological drivers of compliance among online traders, this study employs the Five-Factor Model of personality to examine how individual dispositions shape compliance intentions among social media-based online traders in Tanzania. Using a cross-sectional survey of 384 respondents analysed through Partial Least Squares Structural Equation Modelling, the results reveal that the digital marketplace acts as a contextual filter: openness (β = 0.895, p < 0.001) and neuroticism (β = 0.177, p < 0.05) confirmed a positive relationship, and agreeableness shows a negative relationship (β = −0.333, p < 0.001), while conscientiousness and extraversion demonstrate non-significant effects, with situational cues such as anonymity, algorithmic governance, and peer visibility activating or suppressing personality traits. The study concludes that psychological drivers provide critical explanatory power beyond economic deterrence, offering practical implications for the Tanzania Revenue Authority to adopt tailored strategies, including intellectual engagement for open individuals, procedural clarity for neurotic traders, and fairness cues for agreeable traders. Limitations include cross-sectional design, self-reported intentions, and sample specificity, while future research should employ longitudinal designs, objective compliance data, and platform-stratified sampling.

Source: Cogent Social Sciences

DOI: 10.1080/23311886.2026.2717906

Authors: Fadhili B. Mahenge, Nicodemus S. Mwakilema, Emmanuel E. Lulandala, Richard Ibrahim Msuya

Institution: Moshi Co-operative University

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,165