Understanding the Effect of Demographic and Personality Traits on the E-Filing Continuance Usage Intention in Malaysia

The submission of tax return forms via e-filing has shown a tremendous increase among taxpayers in Malaysia since its launch in 2006, particularly for individual taxpayers. Around 33 per cent of the total registered individual taxpayers in Malaysia have filed their income taxes via e-filing in 2010. E-filing services serve measurable benefits to both taxpayers and the Inland Revenue Board of Malaysia (IRBM) in terms of convenience, time saving, accuracy, security, cost effectiveness, reduced processing time and increase in productivity and efficiency. Unfortunately, as a result of digital divide, all the taxpayers may not be able to realize these benefits. This study examines the effect of individual demographic characteristics of age, gender, income, education and ethnicity, and the Big Five personality traits of extraversion, conscientiousness, neuroticism, agreeableness and openness to experience, on the e-filing continuance usage intention. Data were collected from five urban states in Malaysia, namely, Penang, Perak, Selangor, Kuala Lumpur and Johor. The result indicates a significant support for most of the demographic and personality variables. The implication of the study and future research are elaborated in the discussion.