The effect of presumptive tax on the performance of SMEs in Zimbabwe. A case study of Glenview complex, Harare.
- Author
- Jinja, Viola
- Title
- The effect of presumptive tax on the performance of SMEs in Zimbabwe. A case study of Glenview complex, Harare.
- Abstract
-
The purpose of this study is to investigate how presumptive tax affects the performance of SMEs in Harare's Glenview Complex. The study was conducted as a descriptive survey of SMEs in Harare's Glenview Complex with the following objectives:
• To examine how presumptive tax payments affect SMEs' profitability.
• To examine how presumptive tax payments affect SMEs' investment choices,
• To determine if there is a relationship between presumptive tax payments and performance. The target population was divided into five strata based on their involvement in cottage industries, restaurants, transport, hair salons, and bottle stores. Purposive sampling was used to select 184 SMEs as the sample size from the strata. Using Microsoft Excel and SPSS version 20, questionnaires were used to collect data, which was then analysed. The primary conclusions of the study demonstrated that presumptive tax has a negative effect on the profitability of SMEs. The research findings revealed that the majority of informal traders do not file taxes. The main reasons for this include high tax rates, low detection risk, low trust in the government, and the perception that other informal traders are evading taxes. The research recommends that the tax authorities establish a one-stop shop to simplify the registration procedure and perform follow-ups to improve sector compliance in order to compel the informal sector to register. It is advised that the revenue authority run a serious presumptive tax awareness campaign.
- Date
- 2023
- Publisher
- BUSE
- Keywords
- Presumptive tax
- SMEs
- Supervisor
- N/A
- Item sets
- Department of Accountancy