| Summary: | Small and medium enterprises (SMEs) are important to emerging economies, especially in tackling economic growth and unemployment challenges. SMEs bear a disproportionate burden in complying with many forms of regulations, in particular tax rules and legislation. Complying with tax regulations often result in increased costs and a significant reduction in profits. There is very little information available about the various factors that determine the tax compliance costs of SMEs, especially in Africa. The study attempted to identify the determinants of tax compliance cost using a survey of 132 SMEs in Ghana. From the analysis of three models and OLS regression, the study found that the size of the business, the age of the business, the business sector and technological costs were significant determinants of tax compliance cost. The results provide meaningful insight to the revenue authorities in knowing the determinants of SMEs' tax compliance costs. Furthermore, the findings provide valuable information to SMEs to assist in evaluating and managing their tax compliance costs. Finally, the study offers an empirical contribution to the scanty literature on SMEs' tax compliance cost in emerging economies.
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