Although culture is assumed to play a role in the development of tax systems internationally, its influence is not well understood. This study draws on the cultural frameworks by Hofstede (1980) and Gray (1988) to develop a theoretical model of the influence of culture on tax systems internationally. It also empirically tests hypotheses that relate Hofstede's (1980) individualism, uncertainty avoidance, power distance, and masculinity cultural dimensions to some key values of tax systems: equity, simplicity, neutrality, and visibility. Based on data from 43 countries, the regression results show that individualism is significantly related to all of the tax values, while power distance is significantly related to equity, neutrality, and visibility; and uncertainty avoidance is significantly related to simplicity, neutrality, and visibility. However, masculinity is not related to any of the tax values in the regression analysis. These findings provide support for the importance of culture in influencing tax systems.
