IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 10 2023
DOI: https://doi.org/10.56201/jafm.v9.no10.2023.pg99.113

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Nigeria's Small and Medium-Size Companies' Tax Burden and Financial Outcome

Dr. Confidence Ihenyen, Question Christiana

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Abstract

Researchers in Nigeria looked examined the effects of corporation taxation on small and medium-sized enterprises. This study aims to answer the question, "How have Corporate Income Taxes and Education Taxes affected the bottom lines of Nigeria's smallest and largest firms?" Ordinary least squares regression was used to analyze time series data, and secondary literature was explored. E-views version 9 was used to gather the numerical values of the model coefficient, and the sample population comprised of all SMEs in Nigeria, or around 41.5 million people. Financial performance of small and medium-sized enterprises (SMEs) in Nigeria was demonstrated to be negatively correlated with the education tax but positively correlated with the business income tax. It was found that the three types of taxation that had the largest effect on the financial performance of SMEs in Nigeria were company income tax, education tax, and personal income tax. It is advised that businesses learn how to calculate the amount of tax payable using the available information in order to achieve social sustainability and a larger per capita income for an enhanced standard of living by people.

keywords:

Business taxation, Taxation of Higher Education, Economic Outcomes, Medium-sized and small-scale businesses.

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References:

Adams, S. (1977). An inquiry into the nature and causes of the wealth of nations,
Adejare, A. T. (2015). The analysis of the effect of corporate income tax (CIT) on revenue
profile in Nigeria. American Journal of Economics, Finance, and Management, 1(4),
312-319.

Adeosun, O. T. & Shittu, A. I. (2022). Small-medium enterprises formation and Nigeria?s
economic growth. Review of Economic and Political Science, 7(4), 286-301.

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