Yeri, Omar Kazungu2021-11-102022-06-072021-11-102022-06-072020https://ikesra.kra.go.ke/handle/123456789/1770Tax AdministrationThe researcher in this study sought to evaluate different factors that influence compliance of taxpayers in Likoni Sub-county. The following research objectives was used: To establish the influence that taxpayer knowledge has on Tax compliance among SMEs in Likoni Sub County, to establish the impact that tax rates has on tax compliance among SMEs within Likoni Sub County and to establish the effects of compliance cost influences the level of tax compliance among SMEs in Likoni Sub County. To provide the basis of the study, the researcher relied on prospect, fiscal and psychological and economic theories. The study adopted cross-sectional research design, where 831 SMEs were targeted and a sample of 314 was obtained using Krejecie and Morgan’s formulae, was used. Structured questionnaire was used to collect data from these SMEs and then the collected data was analysed using SPSS version 24. Reliability and validity test on the study variables, indicated that the study variables were reliable and valid. The study found out that tax knowledge and tax compliance were positively and significantly related. Further the analysis showed that there was a negative and significant between tax rates and compliance cost. Finally, on the relationship between compliance cost and tax compliance. the study concluded that tax knowledge and compliance cost significantly and positively affect tax compliance, but tax rates negatively and significantly affects tax compliance. It was further concluded that tax knowledge and compliance cost significantly contribute to the improvement of tax compliance, but an increase in tax rates contributes to non-tax compliance among SMEs in Likoni. The study recommended that KRA should Consider lowering the tax rates to enhance collections. The study finally recommends that the returns ought to be simplified and accompanying notes reconstructed into plain language that can be understood by all taxpayers.enCompliance CostsTax ComplianceTax InformationTax RatesSMEsProjects