Effect of Taxes on the Performance of Insurance

The study investigated the effect of taxation on the performance of insurance companies in Uganda. Its case study was Insurance Company of East Africa ICEA General Insurance Company Limited. The study’s main objectives were to investigate the relationship between PAYE and performance of ICEA; to find out the relationship between Value Added Tax and performance of ICEA and to assess how property tax affects the performance of ICEA.

The study employed a cross-sectional research design, which was descriptive in nature to collected data of the selected variables of the study. The target population for this study comprised 126 employers at ICEA in Uganda. Using questionnaires as its main tool of data collection, the study collected data from a sample that was randomly selected. Data was analyzed through descriptive and inferential statistics and results presented in frequency tables.For deeper analysis, regression analysis of the effect of taxes on performance of ICEA was carried out in order to establish whether taxes had a statistically significant effect on the performance of ICEA. The findings of the study showed a positive strong significant relationship between PAYE and performance of ICEA. The findings also showed that VAT has a positive strong significant relationship with ICEA’s performance. Furthermore, the findings on property tax and its effect on ICEA’s performance showed positive significant correlation. The study recommends that ICEA should manage its tax obligation competitive in order to limit the negative impact of taxation on its operations.
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