Tax education and tax compliance behavior of small business (SB) entrepreneurs in Uganda

This paper examines the effect of tax education on tax compliance behavior among small businesses in Uganda. Using a cross-sectional survey of 460 licensed small businesses drawn from a population of 16,614 firms in Kampala Capital City and Mukono Municipality, data were collected through structured questionnaires and analyzed using Ordinary Least Squares (OLS), Feasible Generalized Least Squares (FGLS) and logistic regressions. The findings reveal that tax education has a significant and positive effect on tax compliance, with businesses exposed to tax education exhibiting higher levels of compliance than those without such exposure. The results are robust across alternative econometric specifications. The study further identifies tax knowledge and perceived fairness of the tax system as important drivers of compliance, while socio-demographic characteristics exert a considerable influence as well. These findings underscore the importance of strengthening taxpayer education programs as a strategy for enhancing voluntary tax compliance among small businesses. For broader policy insights, future research could extend the analysis to a nationally representative sample, unlike the current study which only focuses on Kampala and Mukono. Clinical trial number : Not applicable.