Authors : Doroth James Msami; Dr. Seif Muba

Volume/Issue : Volume 9 - 2024, Issue 9 - September

Google Scholar : https://tinyurl.com/ar5vntza

Scribd : https://tinyurl.com/yfde9a7w

DOI : https://doi.org/10.38124/ijisrt/IJISRT24SEP992

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : The general objective of the study was to assess the factors affecting rental tax compliance in Tanzania. Specifically, the study intended to examine the influence of knowledge of taxpayers on rental tax compliance, to examine the influence of penalties on rental tax compliance and to examine the influence of tax rates on rental tax. This study was carried out in Lindi region. Survey design was adopted while a mixed approach was adopted. Simple random sampling and purposive sampling techniques were used to select 92 respondents. Data collection methods employed included questionnaire, interview and documentary review while analysis of the study was undertaken through descriptive statistics and content analysis. Firstly, the findings revealed that rental tax compliance was affected by little knowledge on filling tax returns, undertaking tax planning, tax calculation and tax laws. Secondly, the findings revealed rental tax compliance was affected tax rates especially unfavorable tax rates, limited exemptions and deductions and limited income earned by taxpayers. Finally, the findings revealed that rental tax compliance was negatively affected by penalties especially absence of penalties for late inaccurate reporting of rental tax, failure to fill tax returns and failure to pay the correct amount of tax. The study concluded that rental tax compliance was affected by knowledge of taxpayers, tax rate, penalties and perceptions of taxpayers. It was recommended that there is a need for provision of education to taxpayers, there is a need for revision of tax rates to make them more favorable and there is a need for imposition of penalties for those who fail to pay rental tax on time and at the correct amount.

Keywords : Tax, Tax compliance, Rental Tax.

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