The Role and Capacity of Tax Knowledge in Enhancing Tax Compliance: A PRISMA-Guided Systematic Literature Review in Ethiopia

Abstract Purpose: This article investigates the role and capacity of the tax knowledge in improving tax compliance in Ethiopia the topic is essential relies not just on taxpayer’s awareness of tax regulations, but also on motivational, institutional, and governmental considerations that formed either knowledge interprets into real compliance behavior. Design/ Methodology/ approach : This study employs a Systematic Literature Review (SLR) directed by the PRISMA 2020 framework. Articles were gathered from Google Scholar, Scopus, and DOAJ and limited to peer-reviewed articles published between 2014 and 2026, with a geographic emphasis on Ethiopia. Selected articles were examined employing qualitative descriptive synthesis. Findings/ Results: The review demonstrates that Tax knowledge commonly supports tax compliance by reinforcing understanding of tax regulations and systems. Nevertheless, the impact of tax knowledge is not unrestricted; it is repeatedly mediated by trust in government, perceived fairness, and tax morale, and moderated by institutional quality and implementation. Tax awareness, trust and education and socialization enhance compliance results, but just when they are rooted in a fair transparent and administratively supportive tax environment. Originality/Value : This study shows tax compliance as a behavioral institutional result formed by mental, behavioral, and administrative factors. The major significance is that attempts to reinforce voluntary compliance should merge taxpayer education, awareness building, trust in government, and available digital facilities instead of trusting mainly on penalties.