A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.This research assessed the attitude towards tax compliance among small and medium enterprises toward tax compliance in the economy used Dar es Salaam region as the case study. Specifically, the study was subjected to assess attitude towards tax compliance among SMEs in Tanzania economy, thereafter it aimed to study the factors contributing towards tax compliance among SMEs in Tanzania economy and lastly it determined the role tax knowledge in enhancing taxpayers’ attitude toward tax compliance. The study was descriptive in nature and it embedded to quantitative approach that guided the conduct of the study. Data were gathered from one hundred small and medium size businesses taxpayers. The findings revealed that respondents had different attitude on taxation system of the country as respondents perceived it to be unfair, tax information do not reach to taxpayers on time, tax payer have inadequate knowledge on tax payment procedures, and many others as presented in findings section. Again the findings showed that SMEs owners agreed positively to the questions about factors contributing factors to tax compliance and finally, the findings showed that however respondents agreed that knowledge on tax issues is a contributing factor in tax compliance. The findings further disseminated that the lack of adequate knowledge on tax issues have caused taxpayers to have poor performance on tax reporting, calculation, tax rules as well as the importance of tax. It was concluded that no matter how it can be explained, the presence of the factors presented in second objective are very essential when come to issues of tax compliance. More important taxpayers need to be given education. And the study recommend that the authority concern (TRA) should champion campaign on knowledge on skills provision to its customers.