| Abstract: | For many developing countries, tax non-compliance has posed a severe challenge to tax administration and revenue performance. Several emerging countries have primarily faced with the challenge of adhering to existing tax structure. Ethiopia is similarly in a similar Scenario. The aim of this study was to test the relationship between tax compliance and its factors in the MRSTin Addis Ababa.Primary data source used from MRSTbranch offices solicit response of 388 taxpayers though survey. Out of questionnaires that have been distributed, 97% were usable. The data was analyzed using quantitative approach, descriptive study (mean and standard deviation) and inferential statistics (regression analysis). The mean value of the five-point Likert scale values of the dependent and various independent variables were taken as factor affecting tax compliance behaviour of taxpayers. The analysis of the data was done with the help of SPSS. V26. The result showed that, the relationship between Business Characteristics, Accounting Practice, Tax policy and electronic taxation has a positive and significant relationship with tax compliance behaviour. However, Awareness of tax rule and regulation has an inverse relationship and insignificant with tax compliance behaviour of Ministry of Revenue small taxpayers. To improve the tax compliance behaviour of taxpayers, it is the researcher’s opinion that the tax office should give emphasise on tax policy awareness creation, giving tax incentives to the best compliers, improve tax rate based on annual turnover of taxpayers and to ease the tax payment procedure to taxpayers. |
