Penalty Payments in Installments
Is it possible for taxpayers to pay penalties related to driving licenses in installments? If so, what is the procedure and eligibility criteria?
Dear Reader,
The Express Penalty System is managed by the Uganda Police Force. You may contact the Traffic Operations Office through their toll-free line 0800199099 for assistance.
Access to TIN Account (Password Recovery Issues)
What steps should a taxpayer take if they have forgotten their TIN password and no longer have access to the registered email address?
Dear Reader,
If a taxpayer forgets their TIN password and can no longer access their registered email, they should first update the email address on their TIN profile.
To change the email address, the taxpayer must visit the nearest URA office with a valid identification document:
- A National ID for Ugandans, or
- A passport for non-Ugandans.
At the URA office, the taxpayer will need to:
- Fill out a form (DT 1003) and clearly write the new email address.
- Attend a short interview with a registration officer to confirm ownership of the TIN.
Once ownership is confirmed, the officer will start the update process. The taxpayer will receive a phone call on their registered number for verification before the changes are approved.
After the email address is updated, the taxpayer can reset their password through the URA website (www.ura.go.ug). A default password will be sent to the new email address, and it must be changed upon first login.
For non-individual TINs (such as companies), a director or business owner must follow the same process on behalf of the organisation.
Reactivation of Dormant Businesses Post-COVID-19
For businesses that ceased operations during the COVID-19 period, what is the process for reactivation, especially where there are outstanding tax liabilities?
Dear Reader,
It is unfortunate that your business stopped operating during COVID-19. However, closing your business does not automatically deactivate your TIN. TIN deactivation must be requested by the taxpayer and approved by URA.
If your TIN was deactivated and you want to reactivate it, you need to visit the nearest URA office with a valid identification document:
- A National ID for Ugandans, or
- A passport for non-Ugandans.
At the URA office, you will be required to:
- Fill in a form (DT 1016) and attach your identification.
- Attend an interview with a registration officer to confirm ownership of the TIN.
Once this is confirmed, the officer will begin the reactivation process. You will receive a phone call on your registered number for verification before the reactivation is approved.
If your TIN was deactivated while there were unpaid taxes, the taxes will continue to accumulate. You are required to pay all outstanding amounts. However, if you do not agree with the tax assessed, you have the right to lodge an objection.
Offsetting Tax Liabilities with Withholding Tax Credits
Can taxpayers request URA to offset outstanding tax liabilities using available withholding tax credits or retained funds? What is the procedure for this?
Dear Reader,
A taxpayer may use their Withholding Tax credits to offset their outstanding tax liabilities. To utilize the credits, follow the steps below;
- Login into the TIN portal account,
- Under Payment select Credit Transfer,
- Input the period that has credits,
- Select period you want to transfer to and submit.
The credits will be transferred after approval.
Please note that the above process only applies to transfer of credits for the same tax head.
Government Payment Delays and Tax Obligations.
In cases where government entities delay payments to businesses for extended periods, how does URA factor this into tax compliance requirements?
Dear Reader,
For VAT registered persons, a taxpayer may elect to account for VAT on supplies to government on cash basis. To account for VAT on supplies to Government entities on cash basis, select the category B2G when issuing e-invoices through the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
Thereafter, at the point of filing the return, the taxpayer will be required to adjust the return for invoices where payments have been received.
Taxpayers may also request to pay the outstanding tax in installments.
Tax Treatment of Imported Agricultural Inputs
Are agricultural pesticides imported for personal or farm use, with approval from the Ministry of Agriculture, exempt or zero-rated for tax purposes?
Dear Reader,
The supply of pesticides (insecticides, rodenticides, fungicides and herbicides) except pesticides packaged for personal or domestic use are subject to VAT at a rate of zero.
However, insecticides packaged for personal or domestic use and acaricides are exempt from VAT under the law.
Utilization of Credit Balances on Tax Ledgers
Why are taxpayers currently experiencing challenges in utilizing credit balances on their tax ledgers following recent system changes?
Dear Reader,
URA has improved the credit transfer process to make it easier and more efficient for taxpayers to use. However, some taxpayers may still experience challenges while using the new system.
If you are facing any difficulties, you are advised to visit the nearest URA Service Centre or the Ledger Reconciliation Section at URA Tower in Nakawa. You can also contact URA through the online portal at touchpoint.ura.go.ug or call the toll-free number 0800217000 for assistance.
Dispute Resolution for Tax Assessments.
What mechanisms are available for taxpayers to dispute tax assessments they believe are unfair or do not reflect their financial reality?
Dear Reader,
Where a taxpayer is dissatisfied with an assessment, you may object to the assessment within 45 days from the date of notice of the assessment.
To object to the assessment;
- Log into your TIN account on our URA web portal, ura.go.ug
- Under eservices, select Objections and Appeals;
- Select object to tax assessments with liability;
- Fill in the relevant information.
An objection decision will made within 90 days from receipt of full information by URA.
Should you not be satisfied with the objection decision, you may apply in writing for Alternative Dispute Resolution (ADR) within 7 days from date of notice of the objection decision or lodge an appeal to the Tax Appeals Tribunal (TAT) within 30 days from date of notice of the objection decision.
Where a taxpayer is dissatisfied with a customs assessment, they may appeal to the Commissioner Custom (via touch point or formal letter) within 30 days from the date of notice of the assessment.
The Commissioner shall make a decision within 30 days from receipt of full information by URA.
A person dissatisfied with the decision of the Commissioner may lodge an appeal to the Tax Appeals Tribunal (TAT) within 30 days from date of notice of the decision.
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