Lutfi Hassen Ali Al-Ttaffi¹ and Hijattulah Abdul-Jabbar<sup>2

1</sup>Faculty of Administrative Science, Seiyun University, Yemen
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²Tunku Puteri Intan Safinaz School of Accountancy,
Universiti Utara Malaysia, Malaysia
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The problem of tax non-compliance is broadly recognized as a serious phenomenon in many countries, especially in the Middle East countries in general and Yemen in particular. However, there is a lack of studies that provide causal explanations of this issue in these countries. Previous studies indicate a number of factors that could possibly influence tax compliance behaviour. In this regard, this study was undertaken primarily to examine the relationship between taxpayers’ perception among SMEs in Yemen about the quality of public governance and their non-compliant behaviour in order to have better understanding of non-compliant behaviour. For the purpose of data collection, a questionnaire was designed and utilized in this study. The analysis reveals that public governance quality is perceived as low in Yemen. A simple regression analysis found that public governance quality has a significant negative influence on tax non-compliant behaviour. Consequently, this study recommends the Yemeni government improves the level of the quality of public governance in order to enhance the level of tax compliance among Yemeni taxpayers.

Keywords: tax non-compliance, public governance quality, Yemen, SMEs