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The Effect of Taxpayer Education on SMEs’ Tax Compliance: The Case of Dar es Salaam City

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  • Fred Mwesiga

    (Institute of Accountancy Arusha)

  • Daudi Twamzihirwa

    (Institute of Accountancy Arusha)

Abstract

This conference paper assesses the effect of taxpayer education on SMEs’ tax compliance: The Case of Dar es Salaam City. The specific objectives of this conference paper were to investigate the effect of e-taxpayer education on SMEs’ tax compliance, to evaluate the effects of print media tax education on SMEs’ tax compliance, and to analyze the effect of stakeholder education initiatives on SMEs’ tax compliance. The study was guided by two theories, the economic deterrent theory and the theory of planned behavior. This study involved the collection of primary data through a questionnaire. The nominal and ordinal data were collected using questionnaires and later subjected to quantitative analysis using Statistical Package for Social Sciences. Data was presented in the form of frequency distribution tables & graphs. The study results showed that indeed; electronic taxpayer education, and stakeholder education initiatives have a significant positive effect on tax compliance among SMEs in Kariakoo tax region-Tanzania, on the other hand, print media taxpayer education has a positive but insignificant effect. The study concludes that education for taxpayers, especially small and medium enterprises (SMEs), and stakeholder education initiatives significantly positively affect their performance in Tanzania. Stakeholders like tax authorities, accounting professionals, and business associations should provide education and support to SMEs through accessible platforms. Collaboration is crucial for consistent education initiatives. Government and tax authorities should offer incentives for high tax compliance and effective tax planning, and simplifying tax regulations can reduce confusion and enable efficient compliance.

Suggested Citation

  • Fred Mwesiga & Daudi Twamzihirwa, 2024. "The Effect of Taxpayer Education on SMEs’ Tax Compliance: The Case of Dar es Salaam City," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 3288-3295, July.
  • Handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:3288-3295
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