Adane Agegn
The objective of this study was to examine the contribution of knowledge for tax compliance in Bahir Dar city from small and medium scale (SMEs) tax payers’ point of view in 2020. A quantitative approach with an explanatory research design was employed and the study has collected data from 296 respondents using a proportionate stratified random sampling technique through a five point Likert scaled questionnaire and it has been analyzed using EVIEWS for a simple linear regression analysis. The study revealed that knowledge can pave the way for tax compliance positively and statistically significantly. Accordingly, the study recommends that government shall raise tax awareness through tax education, training etc. if tax revenue is to be used as a deriving engine of its economy.