The Effect of Tax Knowledge on Voluntary Tax Compliance for Micro Enterprises in Tanzania: A Case of Buhongwa Ward in Mwanza Region

This research aimed as to depict the effect of Tax Knowledge on voluntary tax compliance in Tanzania. To attain the objectives of this study descriptive research design was used. Data was collected through questionnaire from a sample of 166 micro-entrepreneurs of Buhongwa ward in Mwanza region. Statistical tools such as standard deviation, mean, correlation and multiple regression analysis were used to analyze data collected from the questionnaire. Results of the study revealed that legal tax knowledge, procedural tax knowledge, and general tax knowledge have a positive and significant association with voluntary tax compliance. The study thus provides the following recommendations based on study’s findings: (i) Tanzania Revenue Authority (TRA) should consider employing the best practices for tax knowledge, and (ii) TRA should focus on conducting extensive taxpayer trainings.

Keywords: Legal tax knowledge, Procedural tax knowledge General tax knowledge, and Voluntary Tax Compliance