The taxation act (2009) and financial performance of small and medium enterprises in central Equatoria state, South Sudan: a case study of custom market and Munuki market.

Abstract

The study was set to examine the Taxation Act (2009) and financial performance of small and medium enterprises in South Sudan, using a case of Custom Market and Munuki Market. The study was guided by the following objectives: To establish whether Custom Market and Munuki Market comply with all Taxation Act (2009)to ensure effective financial performance. To establish whether taxation awareness and knowledge enhance financial performance of Custom Market and Munuki Market and to examine whether tax administration criteria improve financial performance of Custom Market and Munuki Market. The study used a population of 112 selected from Custom Market and Munuki Market and a sample of 88 respondents was selected using Neumann’s formula (2000). Cross sectional research design and descriptive were used and both quantitative and qualitative approaches of data collection were used. The used questionnaires, interview guide and documentary checklist to collect data from the field. Study finding revealed that R=.889a , R Square=.790 and Adjusted R Square=. 787; this indicates that the significance level was found and the hypothesis tested proved that there is a positive and significant relationship between Taxation Act (2009)and financial performance in Custom Market and Munuki Market. The study concluded that Custom Market and Munuki Market comply with all Taxation Act (2009)to ensure effective financial performance; taxation awareness and knowledge enhanced financial performance of Custom Market and Munuki Market and tax administration criteria improved financial performance of Custom Market and Munuki Market. The study recommends that the government of South Sudan, through policymakers should be able to align the tax systems or policies in order to conform to the environment specific production, importation, exportation, and performance needs for the SMEs. Through such measures, the taxation threshold will be bearable to the SMEs and this is likely to improve financial performance.