Sunday Abimbola AJAYI2024-06-112024-06-112023-12M.Schttps://repository.lcu.edu.ng/handle/123456789/503This study investigated the influence of taxation on the financial performance of Small and Medium Enterprises (SMEs) in Ibadan, Oyo State, Nigeria, aiming to identify the effects of Company Income Tax (CIT), Capital Gains Tax (CGT), and Value Added Tax (VAT). The research was motivated by the observed complexity and burden of tax compliance for SMEs, filling a gap in understanding how specific taxes impact their financial viability. Utilizing a judgmental sampling technique, 120 SMEs in five bustling urban Local Government Areas in Ibadan were selected, ensuring inclusion of diligent tax-payers. Data were gathered through meticulously distributed questionnaires, employing a systematic approach considering both location and optimal times for retrieval. The study revealed that CIT, CGT, and VAT significantly hindered growth and profitability for SMEs, with respondents consistently viewing these taxes as barriers to investment and expansion. It concluded that the current tax system is challenging for SMEs, necessitating recommendations for tax reform that include simplifying regulations, providing incentives, exemptions, and actively engaging SME owners in policy formulation. Implementing these strategies, it suggests, would foster a more conducive tax environment for SMEs in the region. Keywords: Small and Medium Enterprises (SMEs), Taxation, Company Income Tax (CIT), Capital Gains Tax (CGT), Value Added Tax (VAT), Financial Performance, Ibadan, Oyo State, Tax Reform, Policy Formulation Word Count: 185enSmall and Medium Enterprises (SMEs)TaxationCompany Income Tax (CIT)Capital Gains Tax (CGT)Value Added Tax (VAT)Financial PerformanceIbadanOyo StateTax ReformPolicy FormulationThesis