MJAAR

E-Taxation And Financial Performance Of Small And Medium Enterprises In Uganda: A Case Study Of Kikuubo Businesses, Kampala

Mutesi Zalika, Irumba Alex


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
Metropolitan Journal of Academic and Applied Research

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

More in This Issue

View full issue →
11
Digital Taxation And E-Commerce Growth Among Kasita Traders In Kampala, Uganda
Nabunya Asiat, Irumba Alex
Digital taxation e-commerce growth Kasita traders Uganda Revenue Authority
12
Early pregnancy as a mechanism of female educational exclusion in Ugandan secondary schools
Dr. Arinaitwe Julius1 , Dr. Twinomujuni Rosebell2 , Asiimwe Isaac Kazaara3
Early pregnancy school dropout female educational exclusion school re-entry
13
Employee Motivation And Organizational Performance: A Case Study Of Kampala Capital City Authority
Dr Mable Namara, Asiimwe Prisca
Employee motivation Organizational performance Financial incentives Career development
14
Employee Training And Organisational Performance: A Case Of Byayuya Sugar Factory, Kaliro District, Uganda
Mutono Geofrey, Dr. Moses Ntirandekura
Employee training organisational performance human resource development Byayuya Sugar
15
Executive dominance and its effect on parliamentary committee effectiveness in Uganda
Dr. Arinaitwe Julius1 , Akampulira Sarah2 , Nabaasa Desire3
executive dominance parliamentary committee effectiveness Uganda oversight