SME Tax Education and Outreach

How is URA using local media, SACCOs, and community radio to reach informal traders and small businesses with simplified tax education?
Can URA partner with local governments or business associations to create periodic tax clinics for rural SMEs?

Dear Reader,

Uganda Revenue Authority is intentional about continuous improvement of the quality and coverage of tax education. We work with business associations such as Uganda Manufacturers Association (UMA) and partner with different Government Agencies like KCCA, URSB, Local governments, Ministry of Internal Affairs and Ministry of Trade.

Furthermore, URA sensitizes the public on a continuous basis and has disseminated tax literature in 13 (thirteen) languages. This literature can be accessed on the URA web portal (www.ura.go.ug) under Tax Education. Below the login option, use the language option to choose a language you would like to use for reading the material.

URA also runs a weekly publication in Bukedde and New Vision newspaper columns called Buuza Komisona and Ask the Commissioner General respectively. We are also hosted by different Radio and Television sensitization programs in different languages.

URA, is committed to serve you better and welcomes more partnerships to widen the reach of tax education especially in rural areas. Please reach out to us on our tollfree number 0800217000 or our WhatsApp 0772140000 or Touchpoint www.touchpoint.ura.go.ug 

Dear Commissioner General, did you abolish importation of goods under the groupage system?

Dear Reader,

URA has not abolished importation of goods under the groupage system. However, the system requires that upon arrival of goods at the destined warehouse, cargo consolidators must issue individual house bills to the different importers of the groupage cargo, so that each individual pays tax in their own TIN and name.

The rationale for streamlining the groupage cargo clearance system is to promote transparency, fairness and protection of unsuspecting traders from exploitative tendencies by some container leaders who over charge importers and remit less tax to URA making it appear like the taxes are very high.

In addition, clearing taxes through individual TINs enables importers to claim input tax incurred (VAT and WHT) at importation which is not possible where taxes are paid under the TIN of the groupage leader or consolidator.

PAYE and Commission Income

If I am formally employed and already paying PAYE and NSSF, but occasionally earn commission income (which is subject to withholding tax), am I still required to file separate returns for that commission income? If yes, under what category?

Dear Reader,

A taxpayer who earns both salary and commission income is required to file an Income Tax Return for Individual with Business Income declaring both incomes. The Commission category is found under Section E Part 1(4)(e) of the return.

However, where the commission is for airtime distribution or provision of mobile money services to a resident individual, withholding tax on the commission is a final tax and the taxpayer will not be required to file an individual Income Tax Return.

Tax Burden on the Hospitality Sector

Why are hotels and hospitality businesses subjected to over 27 different types of taxes? Doesn’t this make accommodation and services more expensive for tourists? Could the government consider consolidating or waiving some of these taxes to enhance the competitiveness of Uganda’s tourism sector?

Dear Reader,

A taxpayer who owns a hotel or hospitality business is required to account for the following taxes:

• Income Tax: This is tax on profit generated by a business entity which may be taxed under the Individual tax rates (where the business is owned by an individual) or at corporation tax rate (where the business is operated as a company). Income tax is accounted for on an annual basis;
• Pay As You Earn (PAYE): This is deducted at source from the salaries and allowances of employees. Where the business is operating as a company, the director(s) may account for tax on their salary through the PAYE collection mechanism. An employer is required to account for PAYE monthly through a PAYE return and remit the taxes due by the 15^th of the following month. However, where the director(s) has other sources of income, they will be required to account for their income through filing Individual Income Tax returns.
• Value Added Tax (VAT): The business will be required to register and account for VAT where the value of taxable supplies in 3 consecutive calendar months exceeds UGX 37.5m. VAT is accounted for monthly by the 15^th of the following month.

Please note that these are the only domestic taxes collected by URA from the hotel and hospitality business. However, such businesses are required to other fees to their regulating authority and Local Government.

Employer vs. Employee PAYE Obligations:
Can an employee’s PAYE be paid under the employer’s TIN, or must every employee have their own TIN for proper PAYE remittance? How should small businesses handle this practically?

Dear Reader,

Every employee is required to obtain a TIN and share it with their employer so that the employee’s TIN is included when the employer is filing the PAYE return. Under no circumstances should an employee’s PAYE be paid under the employer’s TIN.

Customer Service and Escalation:
When taxpayers face unresolved issues at local URA branches (e.g., Hoima URA Station), what formal escalation channels exist to reach the Commissioner General’s office for timely resolution?

As a service-oriented organization, Uganda Revenue Authority is intentional on continuously improving the quality of service that it offers its clients.

We have availed different channels through which taxpayers may contact us for service-oriented requests and these include: our email address; services@ura.go.ug, or Toll free numbers; 0800117000 and 0800217000, or WhatsApp line; 0772140000, or through our website; touchpoint.ura.go.ug

Taxpayers can also report staff misconduct of any staff to our Integrity, Compliance and Ethics Division via 0800257700 or 0772141075 or through the informer management window accessed as below:

• Visit the URA web portal, ura.go.ug
• At the bottom left, select the whistle blow icon.
• Fill in the form

Taxation of Members of the Armed Forces:
Are members of the Uganda People’s Defence Forces (UPDF) and other security agencies subject to PAYE and other income taxes in the same way as civilians?

Dear Reader, the official employment income of a person employed in the Uganda Peoples’ Defense Forces, the External Security Organization, the internal Security Organization, the Internal Security organization, the Uganda Police Force, or the Uganda Prisons Service, other than a person employed in a civil capacity; is exempt from tax [PAYE.]

However, if that UPDF or Police officer opens up a business, the income from that business is not exempted from taxes, and therefore taxed like any other civilian.

Add to favorites