Abstract:
The study assessed the impact of technology 00 tax compliance among small and medium
enterprises in Tanzania. Specifically had the following specific objectives; to examine the
effect of technology literacy on tax compliance among small and medium enterprises in
Tanzania, to examine the effect of system security concerns on ta r r,ornpliAnce Among smAll
and medium enterprises in Tanzania and to examine the effect of system quality on tax
compliance among small and medium enterprises in Tanzania. The study was conducted in
Tunduma Songwe region, and survey method was applied in data collection from
respondents. 144 respondents were involved in the study; including TRA officers, SMEs sale
electronic devices and sale motorcycles owners from Tunduma Market and shops were
chosen to participate in the study. Also, multiple linear regression and descriptive analysis
was used to analyse the data. The findings revealed that technology literacy and system
quality had significant impact on tax compliance level among SMEs in Tanzania while security
concern has contribution but not significant. The study recommended the following:- the
government invest on improving and emphasising provision of training service to taxpayers on
the usage of technology in taxation; the government to ensuring the existence of reliable
technological service in order to ensure service availability on customers need; the
government to establish appropriate security measures to secure customers information as
well as company privacy; the government to provide reliable technical support to taxpayers to
reduce additional assistance cost of using tax system or devices; and application of simple
and up to date technology to improve tax compliance to all taxpayers should be emphasized. Keywords: Technology, Tax Compliance, Small Enterprises, Medium Enterprises
