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Compliance rates with local and national business taxes: Evidence from Kampala, Uganda

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  • Rose Camille Vincent
  • Stephan Dietrich
  • Kyle McNabb

Abstract

This paper investigates business tax compliance in a multilevel tax structure with limited coordination. We study the case of Kampala, where firms are taxed at national and local levels—by the Uganda Revenue Authority and the Kampala Capital City Authority, respectively—and where the agencies operate quasi-independently. We begin by merging large-scale administrative tax data from the separate registries of the two agencies. In doing so, we have a rare opportunity to understand firm compliance with their due payments to the URA and KCCA.

Suggested Citation

  • Rose Camille Vincent & Stephan Dietrich & Kyle McNabb, 2023. "Compliance rates with local and national business taxes: Evidence from Kampala, Uganda," WIDER Working Paper Series wp-2023-134, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-134
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    References listed on IDEAS

    as
    1. Vincent, Rose Camille, 2023. "Vertical taxing rights and tax compliance norms," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 443-467.
    2. Giulia Mascagni, 2018. "From The Lab To The Field: A Review Of Tax Experiments," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 273-301, April.
    3. Kangave, Jalia & Nakato, Susan & Waiswa, Ronald & Nalukwago, Milly & Lumala Zzimbe, Patrick, 2018. "What Can We Learn from the Uganda Revenue Authority’s Approach to Taxing High Net Worth Individuals?," Working Papers 13528, Institute of Development Studies, International Centre for Tax and Development.
    4. Emily Aiken & Suzanne Bellue & Dean Karlan & Chris Udry & Joshua E. Blumenstock, 2022. "Machine learning and phone data can improve targeting of humanitarian aid," Nature, Nature, vol. 603(7903), pages 864-870, March.
    5. Werner Güth & Vittoria Levati & Rupert Sausgruber, 2005. "Tax morale and (de-)centralization: An experimental study," Public Choice, Springer, vol. 125(1), pages 171-188, July.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Business tax; Tax compliance; Uganda;
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