Factors that influence Tax Compliance by SMEs in Zambia: A case study of Ndola Central Business Centre

Abstract

Tax revenue is such an important part of revenue for governments including the Zambian government. In other words, tax is quite a critical aspect in the managing of national income. SMEs, who constitute a large group of the country’s business entities, contribute a lot to this aspect of the
economy. Sadly, tax compliance by SMEs is quite a worrying affair as the levels of compliance are quite low. The study therefore aimed at interrogating the factors that influence tax compliance
among SMEs in the Ndola Business Centre.
The data used in this study was collected with the help of guided questionnaires. Tables and charts were employed in the presentation of the result of the analysis. A statistical tool called PSPP was used in the analysis of data so as to establish the factors that influence tax compliance by SMEs . It
was established that high tax rates negatively affected the SMEs tax compliance. High tax
compliance costs, low levels of tax education and the negative attitude of SMEs towards tax were
other factors that adversely affected tax compliance.