Tax Policies and Performance of SMEs in Ibadan, Oyo State, Nigeria

The study focused on the impact of taxation policies on the growth and performance of SMEs in Ibadan, Oyo State, Nigeria. The research adopted survey design. The population comprised the entire 7468 SMEs in Ibadan, Nigeria. The simple random sampling technique was used to choose the SMEs owners in Ibadan. The data was collected by administering the questionnaire and data collected were analyzed using descriptive and linear regression techniques. Findings showed that there is a significant negative relationship between higher tax rates and the profitability of SMEs in Ibadan, a significant positive relationship between tax incentives and the investment decisions of SMEs in Ibadan and a significant positive relationship between efficient tax administration and the growth and sustainability of SMEs. Based on the above findings, this study concludes that there is a significant relationship between taxation policies and the growth of SMEs in Ibadan. The study therefore recommended that tax regulations governing SMEs should be simplified in order to make compliance easier for them. This includes clear and simple tax regulations, and an undemanding tax filing process and also there should be provision of educational programs and workshops to help SMEs understand their tax obligations and navigate the tax system effectively.