Impact of Tax Equity, Tax Perception on Smes Performannce in Uganda Case Study: Nateete Market

Abstract

The main purpose of the study was to establish the impact of tax equity, tax perception on SMEs performance. The specific objectives were to examine the impact of tax equity on performance of SMEs, analyze the impact of tax perception on performance of SMEs, and determine relationship between tax equity, tax perceptions on the performance of SMEs.

A case study of Nateete market was used and a sample size of 36 respondents was used. Both the quantitative and qualitative research designs were used and a cross sectional survey was also adopted to help in the collection of data.

Finding in the research showed that SMEs performance is greatly affected by tax equity and tax perception. There is a relationship between tax equity and SMEs performance evident by a correlation of (r = 0.221, p ≤ 0.01). Tax equity enables SMEs to perform because of fair taxes, perception increases compliance of SMEs towards compliance.

The study recommended there is a need to engage the SMEs business people in coming up with the different kind of taxes which are imposed onto them in order to make sure they are not a burden when it comes to performance as well as compliance.

The study establishes that these topics as areas of further research: Social norms and tax compliance among small business enterprises in Uganda, Financial Management Practices and performance of Small and Medium Enterprises.

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