Definition:
Tax compliance involves adhering to tax laws and regulations when processing payments, reporting earnings, and conducting business transactions.

Contextual Explanation:
Payment service providers must ensure proper tax reporting, including sales tax, VAT, and withholding tax, depending on their operational jurisdictions.

Why It Matters:
Non-compliance with tax regulations can result in fines, audits, and reputational damage. Businesses must maintain accurate tax records and meet filing deadlines to avoid penalties.