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This study examines the factors influencing tax compliance among Small and Medium Enterprises (SMEs) in Ubungo Municipal, Dar es Salaam, Tanzania. Using a cross-sectional research design, data were gathered from a sample of 150 SME owners through structured questionnaires. The study employed probability sampling, specifically simple random sampling, to select participants. Key findings indicate that older businesses and married owners are more likely to comply with tax obligations, while perceptions of corruption negatively impact compliance. Although higher education had a marginal effect, better access to tax services and a positive attitude towards taxation significantly contributed to compliance. The study also highlights challenges such as bureaucratic hurdles, corruption, lack of awareness, unfriendly tax administrators, and issues with Electronic Fiscal Devices (EFDs). Recommendations include enhancing tax education, streamlining tax administration, combating corruption, improving access to tax services, addressing technological challenges, and building trust in the tax system.
Hyera et al. (2024) studied this question.