MJAMR

Taxation and Performance of Small and Medium Enterprises in Nakawa Division-Kampala District

Ahumuza Florence, Arinaitwe Julius


Abstract

The study aimed at taxation and performance of small and medium enterprises in Nakawa divisionKampala district and it was guided by the following objectives; To determine the relationship between tax compliance and the performance of SMEs in Nakawa Division, Kampala, to establish the relationship of tax rates and the performance of SMEs in Nakawa Division, Kampala, to examine the relationship of tax incentives and the performance of SMEs in Nakawa Division, Kampala, to evaluate the relationship between taxation and the performance of small and medium enterprises of SMEs in Nakawa Division, Kampala. The study population would be concentrated on SME owners with in Nakawa Division, Kampala. The study area is limited to Nakawa division since the majority of the SMEs are established in urban areas. Nakawa division has a population of 318,447 (JMP, 2017) and 1000 registered SMEs (UBOS). The study findings revealed that the majority of the respondents agreed (mean = 4.39; SD = 0.867) that tax incentives for SMEs have lowered the operational costs associated with the payment of taxes for small and medium enterprises. Tax incentives, investments, and performance of SMEs are closely linked. This was confirmed by most of the respondents as highlighted by the mean score of 4.53 and standard deviation of 0.641. During the study, it was found out that in order to promote the performance of SMEs in Nakawa Division, Kampala. Uganda’s, primary consideration should be given to strengthening the system of taxation through having a simplified system of taxation that can support SME tax payers to meet their tax duties and thus reduce the burden of tax compliance within SMEs.

Keywords

taxation performance small and medium enterprises
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Ahumuza Florence & Arinaitwe Julius (2023). Taxation and Performance of Small and Medium Enterprises in Nakawa Division-Kampala District. Metropolitan Journal of Academic Multidisciplinary Research, 2(9). https://journals.miu.ac.ug/pages/article.php?article_id=1556

More in This Issue

View full issue →
16
Effect of Teaching Methods on Learners’ Performance in Mathematics Subject in Secondary Schools, a Case Study of Luwero High School, Luwero District
Mirembe Christine, Dr Ariyo Gracious Kazaara, Dr Arinaitwe Julius, Prof Nafiu Lukman
teaching methods learners performance mathematics subject and secondary schools
17
18
Effects of Home Schooling on Child Development: A Case Study of Rubaga Division Kampala District
Namae Rebecca, Okee Jill Margaret, Kaziro Nicholas
home schooling and child development
19
Effects of Tour Guide Training and the Development of Tourism Industry. A Case Study of Kenlink Tours and Travels
Nakazibwe Sylvia, Lunyoro Florence, Rutakama Godie
tour guide training development and tourism industry
20
Employment Contracts and Employee Performance in Public Institutions in Uganda: A Case of Uganda Registration Services Bureau
Tumuhimbise Rosette
employment contracts and employee performance public institutions and Uganda