The Impact of the Digital Tax Administration System on Compliance Among SMEs

Abstract

This study assesses the impact of the digital tax administration system on compliance among small and medium enterprises (SMEs) in the Tanzania Revenue Authority, Tanga regional office. The researchers adopted a quantitative approach. Questionnaires collected data from SMEs. In analysis, the study employed descriptive analysis and regression analysis to determine the association between digital tax and compliance. The study used 133 samples from 254 small taxpayers as representatives of the population selected randomly. Findings revealed that the digital tax administration system plays an important role in compliance amongst SMEs as regression analysis produced a P value of 0.000. The findings also suggest that a digital tax administration system improves tax compliance through the use of technology as results produced an overall mean of 4.096, tax data analytics as results obtained an average mean of 3.583, and electronic filing results generated an average mean of 3.612. Researchers recommend that future research could be conducted in other tax regions in Tanzania or elsewhere in the world.