ABSTRACT: This study seeks to examine the impact of tax knowledge on the tax compliance of informal SMEs in Ghana. Quantitative technique is adopted together with the survey strategy. Convenience sampling is adopted to select 400 informal SME owners/managers from whom 326 valid questionnaire responses are obtained. The SPSS is used to perform simultaneous multiple regression on the data to test the hypothesis, after determining the fundamental structure of the items with factor analysis. The findings show that general tax knowledge and procedural tax knowledge have significantly and positively effect on tax compliance but legal tax knowledge does not have significant impact on tax compliance. The study concludes that general and procedural tax knowledge are major determinants of tax compliance. Recommendation is provided that the government and stakeholders in the tax policy and administration space such as the GRA precede their effort to increase tax revenue mobilization with tax education to enhance the tax knowledge of taxpayers that significantly drive taxpayers to be tax complaint. The GRA can do this by liaising with the Ghana Enterprises Agency to build the tax knowledge capacity of the SMEs owners/ managers to enhance compliance.

KEYWORDS: General tax knowledge, Informal SMEs, Legal tax knowledge, Procedural tax knowledge, Tax compliance, Tax knowledge.