Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
E-Taxation And Financial Performance Of Small And Medium Enterprises In Uganda: A Case Study Of Kikuubo Businesses, Kampala
Mutesi Zalika, Irumba Alex
| Journal | Metropolitan Journal of Academic and Applied Research (MJAAR) |
| Volume / Issue | Vol. 5, No. 6 |
| Published | 30 June 2026 |
| ISSN | 3006-6417 |
Abstract
This study examined the relationship between e-taxation and the financial performance of small and medium enterprises (SMEs) in Kikuubo, Kampala, Uganda. Using a descriptive correlational research design and a quantitative approach, data were collected from 120 SME operators through structured questionnaires. The study operationalised e-taxation through e-registration adoption, e-filing usage, and e-payment utilisation, and measured financial performance through tax compliance rates, revenue growth, and cost efficiency. Results indicated that all e-taxation dimensions were positively and significantly correlated with financial performance (r ranging from .621 to .687, p < .001). Multiple regression analysis showed that e-taxation dimensions collectively explain 66.3% of the variance in financial performance (R² = .663, F(4,115) = 56.47, p < .001), with tax compliance rate being the strongest predictor (β = .368, p < .001). The study concludes that e-taxation significantly enhances SME financial performance through improved compliance, cost savings, and revenue transparency. Recommendations include scaling up URA's e-tax awareness campaigns, providing technology access support to SMEs, and simplifying the e-filing interface.
Keywords
E-taxation
financial performance
SMEs
Kikuubo
Uganda Revenue Authority
digital tax
Cite This Article
Mutesi Zalika & Irumba Alex (2026). E-Taxation And Financial Performance Of Small And Medium Enterprises In Uganda: A Case Study Of Kikuubo Businesses, Kampala. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=653
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