An Investigation of the Determinants of Non-Tax Compliance among Small and Medium Enterprises: Case Study of Green Market, Mutare

Liberty D Mudzengerere, Kudzai Munyawarara, Kudzai Munyawarara, Memory Matsikure Cheure, Allen Mutumwa, Denny Chakauya, Tafadzwa Mudadi and Tinashe Mudzengerere
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Liberty D Mudzengerere: Manicaland State University, Mutare, Manicaland, Zimbabwe
Kudzai Munyawarara: Manicaland State University, Mutare, Manicaland, Zimbabwe
Kudzai Munyawarara: Manicaland State University, Mutare, Manicaland, Zimbabwe
Memory Matsikure Cheure: Manicaland State University, Mutare, Manicaland, Zimbabwe
Allen Mutumwa: Manicaland State University, Mutare, Manicaland, Zimbabwe
Denny Chakauya: Manicaland State University, Mutare, Manicaland, Zimbabwe
Tafadzwa Mudadi: Manicaland State University, Mutare, Manicaland, Zimbabwe
Tinashe Mudzengerere: Manicaland State University, Mutare, Manicaland, Zimbabwe

International Journal of Research and Scientific Innovation, 2025, vol. 12, issue 2, 771-806

Abstract: Tax compliance is crucial for both individuals and businesses to fulfill their financial obligations accurately. Small and Medium Enterprises (SMEs) are vital to economic growth but ensuring their tax compliance is a global challenge. This study sought to assess, identify and analyze the key determinants of non-tax compliance with specific reference to SMEs at Green Market, Mutare. The sample comprised of 90 participants who were selected through the use of stratified random sampling procedure. The descriptive survey design and the mixed method approach were adopted for this study. Data collection was done using a semi-structured questionnaire and personal interviews for triangulation purposes. Qualitative data was analyzed according to emerging themes, while quantitative data was presented and analyzed using IBM SPSS (version 21.0). Integration of rational choice theory, deterrence and the social capital theory formed the foundations for this study. The study was guided by both positivism and interpretivism paradigm. The study revealed that institutional, social and economic factors affect tax compliance for SMEs at Green Market. The correlation between level of information access and provision of support services by business development organisations and improved tax compliance was also revealed via the use of Pearson’s coefficient correlation. The Kaiser Meyer-Olkin and Bartlett’s test were used to reveal significant factors where social and economic factors were noted. The study highlighted some strategies that could be adopted by ZIMRA which includes extended payment deadlines, public awareness campaign and provision of online chat-bot and support services. From the findings it can be concluded that there is need for all SMEs to appreciate the role of tax compliance since tax contribute to the nation’s development. Level of access to information and provision of support services from BDOs should be consistent and ZIMRA should prioritize the implementation of an online tax chat-bot to provide immediate assistance to taxpayers. This study suggests that scholars could expand the current research by expanding the sample frame to all SMEs in Zimbabwe. Further studies should incorporate the impact of digitalization on tax compliance investigating on how the digital divide may impact SME tax compliance, particularly in rural areas or among businesses with limited technological resources.

Date: 2025
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