Dissertation (MA Business Administration)This study explores Factors Affecting Tax Compliance in Tanzania: A Case Study of the Tanzania Revenue Authority in Dodoma Municipality. It attempts to examine the Tax Compliance which has encountered a number of challenges, such challenges as difficulties in tax collections /reluctance of people towards paying taxes and poor record keeping and non-issuance of receipts on sales made are some of the notable problems facing TRA within the context of tax management. The study used a sample of 55 respondents and its methodology employed questionnaire, interviews and documentary review during data collection. Data were collected through questionnaire and documentary source such as journals, books and various organizations reports. Descriptive statistics summarized the information from the collected data and data collected were analyzed both qualitatively and quantitatively with a help of computer software programme called Statistical Package for Social Sciences (SPSS). The findings of this study unveil that, tax evasion in Tanzania still exist despite the fact that there are tax policy, reforms and strategies as catalyst to increase government revenues. Change of business name, closing business during inspection, none use of receipts, incorrect sales records and hiding other businesses were identified as ways used to evade taxes. Small returns from businesses, high tax rates, tax knowledge, negative perception of taxpayers on government spending ,unaware of tax matters, the need of high profits, irregular follow-ups from tax authorities and probability of audits and penalties were identified as variables affecting tax compliance in Tanzania. Likewise, divulged in this study is poor training done by TRA to its stakeholders, pitiable working condition and skimpy management, unfriendly working environment, and poor remuneration. Besides, the study also reveals that some fundamentally important facilities such as Offices are not friendly to facilitate proper executions of TRA responsibilities. Additionally, revealed from the study are very poor allocations of fund which escalated TRA to fail to conduct training programs for stakeholders that hinders the efficiency of TRA at large. In view of that; the study recommends that the government need to increase effort to TRA in order to ensure that there is enough and sufficient tax collected for the purpose of increasing revenue at National level as well as Dodoma Municipality and to ensure that TRA stakeholders comply with all TRA regulations in paying tax . Moreover, the study recommends that education on tax compliance to the community is highly needed for the purpose of meeting the arranged target for revenue collection at Dodoma as well as at the entire level of TRA.