This study examines how cultural values influence corporate tax avoidance among Vietnamese firms. The analysis uses a panel fixed-effects model using data from over 6,000 companies spanning the years 1998 to 2018. The results show that firms operating in cultures characterized by high uncertainty avoidance are less likely to engage in tax avoidance practices. This may be attributed to the fact that such cultures have lower competitiveness, prefer stability, and discomfort with inequality and ambiguity, which make them less inclined to evade taxes. On the other hand, a culture with strong masculinity traits appears to drive firms toward higher tax avoidance. This can be explained by the emphasis on competition and a greater willingness to take risks, including unethical financial strategies, which ultimately increase the likelihood of tax evasion. As the first empirical study to examine the relationship between cultural values and corporate tax avoidance in Vietnam, this research provides valuable insights for policymakers and stakeholders in shaping regulatory frameworks and corporate governance strategies.
