Journal
Metropolitan Journal of Academic and Applied Research
MJAAR
Taxpayers' Skills And Tax Compliance Among Small Business Taxpayers In Kampala, Uganda
Nagayi Maureen, Zikusooka Enock
| 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 effect of taxpayers' skills on tax compliance among small business taxpayers in Kampala, Uganda. Persistent low voluntary tax compliance rates among small businesses represent a major challenge for revenue mobilization in Uganda, yet the specific role of taxpayer skills in explaining compliance behavior remains inadequately explored. A cross-sectional survey of 220 small business owners in Kampala's central business district was conducted using structured questionnaires. Data were analyzed through descriptive statistics, Pearson correlation, and multiple linear regression using SPSS version 25. The study conceptualized taxpayers' skills along three dimensions: financial literacy (r = 0.534, p < 0.01), tax record-keeping skills (r = 0.581, p < 0.01), and digital filing proficiency (r = 0.496, p < 0.01), all of which showed significant positive correlations with tax compliance. Regression findings demonstrated that tax record-keeping skills were the strongest predictor of compliance (β = 0.362, p < 0.001), followed by financial literacy (β = 0.281, p < 0.01) and digital filing proficiency (β = 0.198, p < 0.05). The model accounted for 62.1% of variance in tax compliance (R² = 0.621). The study concludes that targeted skills development programs focusing on record-keeping and financial management can significantly improve voluntary tax compliance rates. Recommendations include integrating tax education into business registration processes, establishing mobile tax clinics in commercial areas, and developing vernacular- language tax guidance materials.
Keywords
Taxpayers' skills
tax compliance
financial literacy
record-keeping
small business
Cite This Article
Nagayi Maureen & Zikusooka Enock (2026). Taxpayers' Skills And Tax Compliance Among Small Business Taxpayers In Kampala, Uganda. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=658
More in This Issue
View full issue →
1
A comparative analysis of the Sixth Parliament and the 11th Parliament's institutional independence
Institutional Independence
Sixth Parliament
Eleventh Parliament
Legislative Autonomy
2
Access To Finance And Performance Of Small And Medium Enterprises In Uganda: A Case Of Selected Smes In Kabale Municipality
Access to Finance
SME Performance
Bank Credit
Microfinance
3
Assessing the feasibility of sector-based parliamentary representation in Uganda's governance system
Assessing the feasibility of sector-based parliamentary representation in Uganda's governance system
4
Auditing as ritual versus auditing as enforcement: rethinking public accountability mechanisms in Uganda
Auditing
Public Accountability
5
Business Risk Management, Capital Structure, And Financial Performance Of SMEs: A Case Of Nakaseke District
Business risk management
capital structure
financial performance
SMEs