The general objective of the study was to assess the challenges of collection and implementation of rental income taxation in Jigjiga city revenue authority. The specific objectives of this study were to investigate the challenges of rental income taxation in Jigjiga City Revenue Authority, to analyze the attitude of rental income taxpayers toward taxation, and to analyze the collection systems of rental income tax in Jigjiga City Revenue Authority. In selecting the sample in this research mixed sampling design was used; which means both (random) sampling and (purposive) sampling techniques. Jigjiga city revenue authority Kebele 01 and Kebele 06 were selected randomly. For the purpose of this study both qualitative and quantitative types of data were used from different data sources. To achieve those objectives, the researchers used both primary and secondary data. Primary data was collected through a survey questionnaire which was developed formerly for the sampled respondents, and with the concerned officials, as well as personal observation by the investigators. The secondary data was collected from different documents and sources. The collected data witnessed the existence of negative attitudes and perceptions of rental income taxpayers toward taxation. The result shows that the collection period of rental income tax in the authority is short and it can cause unnecessary fines. Lack of awareness of taxpayers, poor attitude of taxpayers, inadequate knowledge of workers, a limited number of tax officials, lack of access of documented information, and lack of effective implementation of rules and regulations by taxpayers are the challenges that Jijiga city revenue authority faced.

Keywords : Rental Income Tax, Tax Payer’s Attitude, Rental Income Tax Challenges Introduction.