Multiple Taxation and Financial Performance of SMEs in Juba City, South Sudan

Abstract

This research explored the effects of multiple taxation on SMEs Financial performance in Juba City, South Sudan. The study's objectives included investigating the impact of mandatory contributions, business taxes, compliance costs and taxation awareness on financial performance of  SMEs. The study utilized descriptive research design. The target population consisted of 7,140 licensed SMEs in Juba City. Slovin's formula was employed to arrive at a sample of 99 respondents who were selected randomly. Data was collected through questionnaires and analysis performed using SPSS. Descriptively the findings revealed that SMEs experienced negative impacts from mandatory contributions, business taxes and compliance costs. On taxation awareness only 35.6% felt well-informed about their tax obligations. Correlation analysis showed strong negative relationships between mandatory contributions, business taxes , compliance costs and financial performance, while taxation awareness demonstrated a positive relationship. The study concluded that mandatory contributions, business taxes, and compliance costs significantly impaired SME financial performance, while taxation awareness served as a protective mechanism. The study recommended establishing a unified tax collection system, implementing digital tax platforms, and creating comprehensive taxation awareness programs. Progressive tax structures and SME-specific tax regimes were suggested to align tax burdens with business capacity and support economic development in South Sudan.