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ABSTRACT
The broad objective of this study is to examine Tax compliance among Small and Medium Scale Enterprises (SMEs) in Nigeria.
Tax compliance among Small and Medium Scale Enterprises (SMEs) in Nigeria is crucial for economic development, yet it remains a significant challenge. This study investigates the determinants of tax compliance within this sector, employing a mixed-method approach. A survey of 100 SMEs and in-depth interviews with tax officials and business owners reveal that awareness and knowledge of tax laws, perceived fairness of the tax system, tax rates, compliance costs, and government support are critical factors influencing compliance behavior. Findings indicate that many SME owners lack adequate understanding of tax obligations, perceive the tax system as unfair, and are deterred by high tax rates and complex processes. Enhanced tax education, transparent and equitable tax policies, reduced compliance costs, and robust support services are recommended to improve compliance rates. Effective enforcement mechanisms balanced with supportive measures are also essential to foster voluntary compliance. These strategies are vital for increasing tax revenue and promoting the sustainable growth of Nigeria’s economy.
