Assessment of Tax Enforcement in Selected Small and Medium Enterprises (SMEs) in Kigali City, Rwanda





Tax system, Training on tax, Tax Audit, Tax rewarding, Tax penalties


The purpose of the study was to assess the level of tax enforcement as it is exerted by Rwanda Revenue Authority (RRA) among SMEs in Kigali city. The indicators under consideration are Tax system, Training on tax, Tax Audit, Tax rewards and Tax penalties. Administered questionnaire was used to collect data. Finding showed that generally, tax system was appreciated at a moderate level (Mean=2.67). The average level of RRA trainings is low (Mean=2.31). The General level of tax audit practice is high level (Mean=3.72). Generally, the level of Tax Rewarding is Moderate (Mean=3.37). Generally, the level of appreciation on Tax Penalties was Moderate (Mean=2.53). As recommendations, RRA should change its tax system. This is because level of appreciation of the taxpayer to the system is moderate with a mean of 2.67. The are to improve include helping taxpayers to pay only when they have made profits. Facilitating the taxpayer to increase the capacity to pay their tax liabilities, making tax law friendly user by SMEs taxpayers. RRA should increase training for SMEs taxpayers. This is because the level of this indicator is low. The low level has been found in all areas of training assessed. RRA should increase the rewords to the best taxpayers so that this practice is recognized by all taxpayers. It should also avail them the standards of selection and to the public. This will increase trust and competition in complying to the tax laws.

RRA should modify the penalties given to taxpayers who have broken the tax laws. This is because the taxpayers said that the tax penalties discourage many SMEs. The tax penalties should be reduced and increase other methods of enforcement such as education, rewords and audit. Taxpayers should inform themselves from different sources about the tax system as applicable in Rwanda. This will help them to comply with the law and avoid penalties




How to Cite

NTAHONDEREYE, A., & NTAKIRUTIMANA, E. (2023). Assessment of Tax Enforcement in Selected Small and Medium Enterprises (SMEs) in Kigali City, Rwanda. East African Journal of Science and Technology, 13, 15–29.