Impact of Tax Cost on Tax Compliance for Small to Medium Enterprises: A Bibliometric Analysis

Description

Page: 1714-1721

DOI: https://doi.org/10.5281/zenodo.17826597

Simbarashe Chibaya and Ophias Kurauone (Department of Higher Degrees, Faculty of Commerce, Zimbabwe Open University, Zimbabwe)

This study explored the impact of tax cost on tax compliance among Small to Medium Enterprises (SMEs) through a bibliometric analysis of scholarly literature. It examined how administrative, compliance, and transaction-related tax costs influence the willingness and ability of SMEs to comply with tax regulations in both developed and developing economies. The research adopted existing academic contributions on tax compliance and identified recurring themes, including compliance cost burden, tax complexity, informality, enforcement mechanisms, and digitalization of tax systems. It further highlighted structural and contextual barriers to compliance, such as limited financial literacy, weak institutional support, fragmented record-keeping practices, and regulatory inconsistencies affecting SMEs. Grounded in the Allingham-Sandmo tax compliance model and the fiscal exchange theory, the study investigated how tax cost dimensions interact with compliance behaviours while considering the role of policymakers, revenue authorities, and SME associations in shaping outcomes. Bibliometric data were retrieved from the Scopus and Web of Science databases covering publications from 2000 to 2024. Using analytical tools such as VOSviewer and Biblioshiny, the study mapped author influence, institutional collaboration, thematic evolution, and citation trends. Findings revealed growing global research interest in SME taxation, with significant contributions emerging from countries in Sub-Saharan Africa, Asia, and Europe. While research has increasingly focused on digital tax innovations and simplified regimes to reduce costs, implementation challenges remain particularly acute in developing contexts. The study concluded with recommendations on designing proportionate tax systems, simplifying compliance procedures, expanding tax education, and strengthening academic-policy engagement to enhance compliance while minimizing tax costs for SMEs.