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 →
21
Institutional &#039;gaming practices&#039; and learner exclusion before Primary Leaving Examinations
Dr. Arinaitwe Julius1 , Musiimenta Nancy2 , Akampurira Sarah3
Gaming practices Learner exclusion Primary Leaving Examinations Uganda
22
Inventory Management Practices And Business Profitability: A Case Study Of Supermarkets In Kampala
Akampurira Sarah, Agaba Devis
Inventory management Business profitability Demand forecasting Inventory control
23
Mapping primary-to-tertiary attrition rates and their structural determinants in Uganda&#039;s education system
Dr. Arinaitwe Julius1 , Musiimenta Nancy2 , Akampurira Sarah3
Attrition Education Pipeline Uganda Household Socioeconomic Capital
24
Multi-sectoral coordination challenges in Ugandan social policy implementation
Dr. Arinaitwe Julius1 , Akampurira Sarah2 , Nabaasa Desire3
Multi-sectoral coordination social policy Uganda structural equation modelling
25
Reassessing the &#039;Skills Gap&#039; Narrative: A Critique of Conceptual Displacement in Ugandan Education Policy
Dr. Arinaitwe Julius1 , Ahumuza Audrey2 , Asiimwe Isaac Kazaara3
Ugandan Education Policy