Browsing by Author "Natasha Nziza Nyakato"

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    The Effect of Income Tax on the Financial Performance of Small Businesses in Central Division Mukono
    (Uganda Christian University, 2024-09-02) Natasha Nziza Nyakato
    The study provided a detailed analysis of how income tax policies affect the financial performance of small businesses. Small businesses faced different financial pressures compared to the larger businesses and they play a crucial role in economic development and job creation. This research examined the relationship between income tax rates, incentives, and small business financial outcomes, mainly looking at the profitability, cashflow, liquidity and growth potential. The study used a cross sectional survey design that included the quantitative research method where by a sample size of 88 respondents were used. All of these respondents were small business owners in central division Mukono district and only questionnaires were used to collect information from these groups of people. The analyisis showed that the tax burdens constrained the performance of the small businesses whereby the high tax rates negatively impact the small businesses because they prevent the small businesses from expanding, reduces their profitability since most of their profits are diverted towards taxes. It however explained that access to clear and concise tax information would improve the compliance of these small business owners towards tax regulation. The study recommended that the government together with the tax authorities should carry out workshops to educate these small businesses owners about the different types of taxes they are supposed to pay as well as the procedures to follow while filing the taxes in order to reduce on the challenges that they face due to these taxes.