Challenges that arise in respect of tax knowledge, tax compliance, and tax complexity for small and medium enterprises (SMEs) in South Africa

Abstract

Mamman et al. (2015, p. 5) found that there is a strong relationship between small and medium enterprises, economic growth and poverty reduction. Small and medium enterprises’ survival and growth are therefore important. This research report identifies the challenges that arise in respect to tax knowledge, tax compliance and tax complexity for South Africa’s small and medium enterprises. The research report discusses which businesses are small and medium enterprises, the tax knowledge required of these enterprises, the tax compliance requirements faced by these enterprises, the tax complexity faced by these enterprises, and the tax challenges in relation to the value-added tax and employees’ tax in respect of tax knowledge, tax compliance and tax complexity faced by these enterprises in South Africa. The research report suggests that there are challenges that arise in some cases with respect to tax knowledge, tax compliance, and tax complexity and therefore this research report concludes with highlighting areas that require further research