Effect of Perceived Usefulness of Digitized System on Rental Income Tax Compliance Among Landlords in Makadara Constituency, Nairobi County, Kenya
DOI:
https://doi.org/10.70619/vol4iss5pp49-58Keywords:
Landlords, Perceived Usefulness of Digitized System, Rental Income Tax ComplianceAbstract
Purpose: Despite the tremendous growth in real estate, the corresponding tax collection from the sector has remained low. The contribution by rental income earners has been low despite all the efforts to enforce rental income tax policies. The study examined the perceived usefulness of digitized system on rental income tax compliance among landlords in Makadara Constituency, Nairobi County, Kenya.
Methodology: It was guided by a unified theory of acceptance and use of technology the study adopted an explanatory research design. The target population was 4,927 landlords in Makadara Nairobi County. The sample size of the study was 369, and the study questionnaires that were correctly filled and returned were 230. The study used primary data which was collected using structured questionnaires with close-ended questions and a pilot test was conducted to test reliability and validity.
Results: The study found that Perceived usefulness of digitized system and rental income tax compliance, β=0.261 p-value =0.000<0.05.
Conclusion: Based on the findings the study recommends that the KRA should launch widespread campaigns to educate landlords about the usefulness of digitized systems. Future studies could be conducted to determine the impact of tax reforms on rental income tax compliance.
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