A STUDY OF FACTORS AFFECTING TAX COMPLIANCE AMONG SMEs IN ZAMBIA

Abstract: Governments engage into various strategies to raise resources to finance among other things their developmental projects. From its domestic base collecting revenue from SMEs is one of them. However, tax compliance among small and medium taxpayers is a challenge and is very poor. It is for this reason that the researcher embarks on this study to assess the factors that affect tax payer compliance among the SMEs in Zambia. The sampling frame for this study is the main business activity the representative SME are engaged in and the length of time the business has been in operation. The sample size will be 50 small and medium size enterprises taxpayers, in the Kamwala Shopping area in Lusaka. Among the notable factors identified as affecting tax compliance among SMEs are the high level of cost for tax compliance for SMEs brought about by the long process for filing in returns; inadequate or lack of proper knowledge on tax compliance and its benefits for SMEs and also the negative attitude of SMEs towards tax compliance. The study therefore, will make recommendations that the process of filing in for taxes be shortened and the need for use of expert agents be removed into to shorten the process and reduce costs. It will also be recommended that the Authority enhances its taxpayer education to enlighten the SMEs on the many incentives available for the sector and how they could be accessed. Lastly, government should consider widening the incentive base to attract and change the attitude of SMEs towards being tax compliant. Keywords: Kamwala, Revenue, SMEs, Tax compliance, Tax, Zambia, ZRA. Title: A STUDY OF FACTORS AFFECTING TAX COMPLIANCE AMONG SMEs IN ZAMBIA Author: Ms. Dinah Diana Banda, Dr. Nilanjana Kumari International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 9, Issue 3, July 2022 - September 2022 Page No: 120-125 Paper Publications Website: www.paperpublications.org Published Date: 15-September-2022 DOI: https://doi.org/10.5281/zenodo.7081788 Paper Download Link (Source) https://www.paperpublications.org/upload/book/A%20STUDY%20OF%20FACTORS%20AFFECTING-15092022-3.pdfInternational Journal of Recent Research in Commerce Economics and Management (IJRRCEM), ISSN 2349-7807, Paper Publications, Website: www.paperpublications.or