The effect of Income Tax on Profitability Levels of Small and Medium Enterprises (Smes) A case study of Kapchorwa Municipal, Kapchorwa District
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Date
2017-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management Sciences
Abstract
The study was can-ied out to detennine the effect of income tax on the profitability levels of
small and medium enterprises. The objectives included to evaluate measw-e s used in assessing
' taxes on SME's to determine the relationship between income tax and profitability levels of
SME's.
The study was a survey involving a collection of both quantitative and qualitative data. Primary
data was collected through interviews using questionnaires and secondaty data from journals,
text books and pe1-iodicals. The findings revealed that income tax negatively affects a number of
SME's in that all profits which would have been ploughed back into the business are eroded
away by tax.
Recommendations include; sensitization of income tax payers by URA officers in form of tax
education should be done regularly. URA should also train their staff about tax assessment and
collection methods as well as how to handle tax payers and small scale beginners regardless of
the size and level of gross annual turnover should be exempted from income tax deposits.
Description
Research report submitted to the College of Economics and
Management in Partial Fulfillment of the Requirement for the
Award of Bachelor's Degree in Business Administration at
Kampala International University
Keywords
Income Tax, Small and Medium Enterprises, Kapchorwa District