Tax Compliance. Determinants of Tax Compliance among Micro and Small Enterprises in Nairobi County, Kenya

      Аннотация: The general objective of this study was to establish the determinants of Micro and Small Enterprises tax compliance in Kenya. With government expenditure increase, there is a high demand to increase revenue collection in order to reduce the budget deficit. Micro, Small and Medium sectors have emerged as potential and unexploited by the Kenya Revenue Authority tax system. In an attempt to counter this, KRA has enacted amendments in the tax laws and procedures and also offered amnesties. However, tax collected from Micro, Small, and Medium has usually been lower in comparison to their contributions to employment and economic output. The study concluded that MSEs are aware of domestic tax reforms in light of tax rates, administration, and obligations. In regard to inflation, it was concluded that inflation affects general prices which consequently influences Micro and Small Enterprises tax compliance negatively. MSEs tax behavior has a significant influence on the MSEs tax compliance in Nairobi county. The recommended involvement of MSEs in tax reforms and administration of MSEs tax education. The study also recommended KRA to be conducting constant compliance audit checks on MSEs.

Ключевые слова: tax compliance, small, micro and small enterprises