The purpose of this study was to establish the relationship between tax administration and performance of business enterprises in Kabale Municipality. It was based on the following objectives; Tax registration significantly affects the performance of business enterprises in Kabale Municipality, tax assessment significantly affects the performance of business enterprises in Kabale Municipality and tax incentives significantly affect the performance of business enterprises in Kabale Municipality. The study found that the majority of the respondents with a mean score of 3.29 and a standard deviation of 1.185 believed that streamlining tax incentives in Kabale Municipality is a strong stimulus to improving business performance while respondents with a mean of 3.23 and a standard deviation of 1.278 opined that tax incentives for business enterprises in Kabale Municipality has attracted and retained new businesses. The study found that the majority of the respondents with a mean score of 3.91 and a standard deviation of 0.971 believed that the tax officials of Kabale Municipality assess business enterprises basing on amended tax policies. The study found that the majority of the respondents with a mean score of 4.07 and a standard deviation of 0.977 believed that High tax rates on businesses make tax mobilization difficult in Kabale Municipality. Results portrayed 81 (54.7%) of participants as male, female counterpart in comparison were 67 (45.3%) of the respondents. Revenue mobilization and its subsequent repayment inform of taxes paid by the business enterprises leads to low business performance since it encroaches on the business financial achievements of the firms. In Kabale Municipality, revenue officials use government policies to collect taxes.