Factors Influencing Turnover Tax Compliance among Micro, Small and Medium Enterprises Sector in Westland Area in Nairobi, Kenya

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dc.contributor.authorMutinda, Timothy
dc.date.accessioned2023-03-16T12:37:25Z
dc.date.available2023-03-16T12:37:25Z
dc.date.issued2022
dc.descriptionPost Graduate Diploma in Tax Administrationen_US
dc.description.abstractTurnover tax was introduced in Kenya in 2007 to enhance revenue collection, improve tax administration and reduce non-compliance and collection costs among the micro, small and medium enterprises. However, the level of tax compliance for the turnover tax has been very low since its implementation. The main objective of the study was to establish factors influencing turnover tax compliance among micro, small and medium enterprises sector in Westlands area in Nairobi. The specific objectives were to establish the effect of digitalization of service, compliance cost, taxpayer perception and deterrent measures on turnover tax compliance among the MSMEs in Westlands. The study was anchored on four theories; Ability to pay theory, Fiscal Exchange Theory, The economic deterrence theory and Technology Acceptance Theory. The target population was 241 MSMEs registered by the Kenya Revenue Authority and a sample size of 151 respondents. Primary data was collected through closed-ended questionnaire, with a response rate of 74%. The data was analyzed using descriptive and inferential statistics. The study findings indicated that the digitaliazation of services.(β1=0.315, p=0.000<0.05), taxpayer perception.(β3=0.278, p=0.006<0.05), and deterrence measures.(β4=0.330, p=0.000<0.05), had a statistically positive significant effect on turnover tax compliance among the MSMEs in Westlands while compliance cost .(β= -0.294, p=0.000<0.05), had a negative effect on turnover tax compliance among the MSMEs in Westland. The study results concluded that digitalization of service, compliance cost, taxpayer perception and deterrence measures significantly affect turnover tax compliance among the MSMEs in Westland. Based on the findings, the study recommended that KRA should pay more attention and focus on deterrence measures and develop policies relating to the deterrence measures. The study therefore suggests that, future studies to focus on different variable such as effect of tax audits on turnover tax compliance in Kenya.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/2656
dc.language.isoenen_US
dc.publisherKESRA/JKUATen_US
dc.subjectTurnover tax, Deterrence Measures,Costs of complianceen_US
dc.titleFactors Influencing Turnover Tax Compliance among Micro, Small and Medium Enterprises Sector in Westland Area in Nairobi, Kenyaen_US
dc.typeThesisen_US

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