Research report submitted in partial/fulfilment of the requirement for award of the Bachelor Degree of Business Administration in Entrepreneurship and Development(BBA-ED), Mzumbe University.This study aims to assess the factors that influence voluntary tax compliance, especially for small and medium enterprises. The specific objective of the study was to determine educational level as the factor influence voluntary tax compliance for small and medium enterprises, to determine income level among small and medium enterprises as the factors affecting voluntary tax compliance, to determine the fairness of tax law and regulation as the factors affecting voluntary tax compliance for small and medium enterprises and the last one is to determine how does the attitude of small and medium enterprises influence voluntary tax compliance. Furthermore, the findings have shown that some of the respondents do not comply with tax laws and regulations as they fulfil their obligation by force.The study was deciding Tax education, fines, and penalties, customer attitude and fairness of tax law and regulation as the factors that can be the influence of voluntary tax compliance for small and medium enterprises. Whereby the study comprises forty-eight (48) respondents where eight (8) was tax officers from TRA and the rest were taxpayers. The methods used to collect data were the primary method and secondary method whereby the primary method involved questionnaires, interviews, and participatory observation. Under this research primary data were based on both qualitative and quantitative in which quantitative was data collected and analyzed by questionnaires with closed-ended questions, while qualitative data include questionnaires with open-ended questions, interviews, and observation. Interview method involved only to tax offices but questionnaires involved both to tax officers from TRA and taxpayers from Temeke tax region.Under this study, data were collected by using descriptive statistics and statistical package for social science (SPSS) version 20 was involved to process and analyze data after it has been coded. Data was presented on tables for easy analysis and interpretation of findings.