A Dissertation Submitted in a Partial Fulfilment of the Requirements for the Award of a Master of Business administration in corporate Management (MBA-CM) of Mzumbe University.This study sought to establish factors influencing voluntary tax compliance to Small and Medium Enterprises in Kinondoni tax region, Tanzania. The study was guided by three specific objectives namely; to findout the rate at which SMEs voluntary conform to income tax in Tanzania, to find out the efficiency of Tanzania Revenue Authority block administrative system in influencing SMEs Compliance to income tax and to determine factors which influence the perception of SMEs on voluntary tax returns. The study was conducted at Kinondoni Tax Region (KTR) and covered a sample size of 100 respondents, which include 80 customers and 20 TRA staff members. In addition to that, the study used both secondary and primary data sources. For the purpose of this research data was collected through questionnaire, interview and document review.The information was based on TRA Kinondoni tax region. Data was analyzed with SPSS Version 20. The study found out that most of the customers of Tanzania Revenue Authority both registered and unregistered have low awareness on tax laws, this regarded as of the main factors influencing tax compliance among SME's. In addition to that, the study found out that, there is weakness in TRA block system management since it did not manage to cover majority of the respondents neither to simplify work. In addition, it was found out that, education level amongst taxpayers has a great influence on taxpayers towards compliance. It was concluded that, TRA should considers empowering its officers, provide and equip them with more facilities for easy and fast visitation, increasing trainings to tax payers and tax laws should be made such that understood and user friendly.