Abstract: Rwanda, as any other country in the world needs resources to finance national expenditure for economic development. Tax collection is perceived to be the highest contributing factor to this achievement. For efficient and effective collection of taxes, Rwanda has moved away from administrative assessment system to a system of self-assessment which relies on most taxpayers to voluntarily comply with their tax obligations to register, keep proper records, file correct returns and pay tax on time. Therefore, this study was aimed at assessing the determinant of tax compliance on corporate income tax in Rwanda amongst corporate enterprises to determine what encourage or discourage taxpayers to register, to file and pay to the tax authority the accurate tax and at the right time. According to the literature review, four main factors influence tax compliance namely: economic, institutional, social and individual factors. A sample size of 396 taxpayers grouped into large, medium and small taxpayers was randomly selected and participated in this study. Primary and secondary data was used in this research. Data was collected with the help of a structured questionnaire. Descriptive statistics were presented in forms of tables, frequency, and percentage. The empirical analysis used multinomial regression model and correlation coefficient analysis. The study results show a statistically significant relationship between tax knowledge, tax law, tax rates, enforcement, tax penalties, tax attitudes and perceptions and tax compliance level. With tax knowledge that knowledge as an important factor influencing tax compliance among taxpayers in Rwanda. The results show that 56.3 % of respondents are not informed of their tax rights and obligations, while 57.7% have not received trainings or any other information regarding how to use RRA electronic filling and payment system. This may pose some taxpayer educational challenges for RRA. The study results can assist the policy makers and the tax administration to address the root causes of non-compliance to eradicate once for all the non-tax compliance among taxpayers.
Keywords: Tax compliance, Corporate income tax, Tax avoidance, Tax evasion, Rwanda Revenue Authority.
Title: THE DETERMINANTS OF TAX COMPLIANCE ON CORPORATE INCOME TAX IN RWANDA
Author: Helene UWIMBABAZI, Harelimana Jean Bosco
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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