Assessment of Factors Associated With OTT Tax Compliance in Uganda: A Case Study of Kampala

Abstract

The aim of the study was to assess the factors associated with OTT tax compliance. Its objectives were to establish the relation between demographic and socio-economic factors with people’s OTT tax compliance. The study was conducted in Kampala and it used a two stage cluster sampling technique to select a sample of 100 respondents. The researcher used questionnaires to collect data and it was analyzed using SPSS at both univariate and bivariate level. According to the findings of the study, it was revealed that there was a significant association between respondent’s marital status, age, education level, occupation as well as monthly income with OTT tax compliance. The study concluded that although majority of the respondents were currently using social media, only half of them were fully compliant to OTT tax. This was due to the fact that many people had access to Wi-Fi and VPN’s and therefore found no use of paying OTT tax. The main problems people faced while paying OTT was a high fee charged and unfavorable means of payment. The researcher therefore recommends government to look for other OTT tax payment methods other than mobile money like using airtime and also to increase on public sensitization as far as OTT tax is concerned in order to reduce on the use of VPN and increase on the compliance thus raising the target revenues that can sustain the economy.