The Effect of Citizens’ Perception of Governance on Tax Compliance: A Cross-Country Analysis Study for 32 Sub-Saharan African Countries

Abstract Raising domestic revenue still represents a priority for most Sub-Saharan African countries that continue to face high tax non-compliance. This research investigates whether there is a link between citizens’ perceptions of governance and individual tax compliance in SSA. We employ a logistic regression model by applying five levels of specifications and using round 7 of the Afrobarometer, which contains information on Africans’ views on democracy, governance, economic reform, civil society, and quality of life for 32 countries. The main results suggest that perceptions of governance and attitudes towards tax compliance are positively associated, and their impact differs by country. The study proposes a binary mediation analysis to investigate the direct and indirect effects of governance perception on individual tax compliance, with trust in institutions serving as a mediator. Our findings suggest that a negative perception of governance may influence the trust in institutions and affect willingness to pay taxes.