What guidance or support does URA provide to first-time entrepreneurs to help them understand tax registration, filing obligations, and compliance requirements?

Dear Reader,

As a new taxpayer, you may access any URA Service Centre for guidance regarding your rights and obligations. At our offices, you will be able to have onboarding sessions that are intended to support taxpayers comply with their obligations including but not limited to how to register, update registration details, file returns and pay taxes.

The Uganda Revenue Authority (URA) is pleased to announce the upcoming opening of a Taxpayer Support Center located on the ground floor of Pearl Towers. This center will provide taxpayers with a dedicated space to resolve tax-related issues with the assistance of our standby officers. We invite all taxpayers to visit the center for any support needed. Furthermore, URA is planning to establish an additional service center in the city center to enhance accessibility and service delivery.

In addition, our Tax Education team is readily available to support all taxpayers through trainings and availing tax literature. Weekly training sessions are conducted at URA Service Centre, Ham Towers, Tuesdays for Domestic Taxes and Thursdays for Customs from 10.00am to 12.00pm.

Key learning areas for domestic taxes include:

• Keeping proper business records.
• Filing returns.
• Payment of taxes.
• Updating registration details.
• Due dates for filing returns and payment of taxes.
• How to avoid penalties and interest on late payments.

Please note that tax education 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.

For further information, do not hesitate to reach out to us via https://touchpoint.ura.go.ug/ or on our tollfree number 0800217000 or WhatsApp on 0772140000.

Digital tax services and system improvements

With the increasing use of URA’s digital platforms, what upgrades or improvements are planned to make tax filing, payments, and account management easier for taxpayers?

Dear Reader,

URA has continuously made system upgrades to improve service delivery.

For instance, the Local Excise Duty, Rental Income Tax and Value Added Tax returns are now web based. These have since changed from the previous excel forms and simplified the filing process.

URA has diversified payment platforms like; over the counter, Electronic Funds Transfer, VISA card services, Real Time Gross Settlement and the use of USSD Code *285# for MTN.

Support for small and informal businesses

Many small businesses operate informally before formal registration. How does URA encourage these entrepreneurs to formalize while ensuring that compliance requirements remain manageable?

Dear Reader,

URA collaborates with other government agencies including Uganda Registration Services Bureau [URSB], Kampala Capital City Authority [KCCA], Uganda Investment Authority [UIA] and Ministry of Local Government through the Taxpayer Register Expansion Programme (TREP) to provide a One Stop Centre with the aim of supporting business formalization.

The Law provides for a three-year tax incentive (Income Tax exemption) for anyone who registers their business after 1^st July 2025. URA is encouraging taxpayers to register their businesses and benefit from this income tax exemption.

Role of National Identification Number in tax registration

What is the role of a National Identification Number (NIN) in tax registration, and can individuals obtain a Tax Identification Number (TIN) even if they are running a small or early-stage business?

Dear Reader,

The National Identification Number [NIN] issued by the National Identification Registration Authority (NIRA), is a unique identifier that will be used to identify individual taxpayers who are citizens of Uganda. It will replace the Tax Identification Number (TIN) which is currently in use.

Every person liable to pay tax under a tax law is required to apply to the Commissioner General for registration. Upon registration, the Commissioner General shall issue a TIN to each person registered. 

Therefore, every person with a business, small or at an early stage is required to register for taxes and issued with a unique identifier (TIN).

Engagement with business associations

How does URA collaborate with business associations and chambers of commerce to address tax policy concerns and improve compliance within the private sector?

Dear Reader,

The Ministry of Finance, Planning and Economic and Development (MoFPED) is the tax policy arm of Government and Parliament is the legislature. URA’s mandate in tax policy is simply advisory in nature. The Minister of Finance may require the Commissioner General to provide input regarding policies that Government is introducing or removing, their revenue implication and the impact of the proposed policy changes on tax administration.

During the policy cycle, MoFPED receives policy proposals from different associations and government agencies and in conjunction with URA, engage stakeholders on the proposed policies.

URA also engages stakeholders such as tax consultants, professional associations etc. and analyses their proposals for further discussion with MoFPED. In addition, URA participates in different budget breakfasts organized by the private sector like UMA, American Chamber of Commerce and audit firms.

Tax treatment of real estate purchases

When purchasing apartments or other real estate properties, what taxes are applicable in Uganda, and under what circumstances would Value Added Tax (VAT) apply?

Dear Reader,

When purchasing an apartment or other real estate property, different taxes may be applicable and include the following:

1. The purchaser will be required to withhold tax at a rate of 6% where the seller is a resident person or 10% where the seller is a non-resident;
2. The seller will be required to account for capital gains tax on the disposal;
3. Value Added Tax is applicable where the property is a serviced apartment or a commercial building.

In addition, a person who earns rental income is required to account for rental income tax and where the property is a serviced apartment or a commercial building, VAT shall be applicable where the rental income earned by the person meets the VAT registration threshold of UGX 150m per annum.

Tax obligations for new businesses

For someone planning to start a new business in Uganda, such as an auto brokerage firm, what are the key taxes they should expect to pay, when are these taxes due, and through which URA platforms can they be paid?

Dear Reader,

Every business is required to register and account for relevant taxes. An auto brokerage firm as a business entity is required to account for the following taxes:

1. Income Tax: This is tax on profit generated by the auto brokerage firm, which may be taxed under the Individual tax rates (where the auto brokerage firm is owned by an individual) or at corporation tax rate (where the auto brokerage firm is operated as a company). The final income tax return is due by the last day of the sixth month after the end of the financial year.
2. PAYE: This is deducted at source from the salaries and allowances of employees. The auto brokerage firm will be required to account through a PAYE return and remit the taxes due by the 15^th of the following month.
3. VAT: This is applicable where the annual turnover of taxable supplies exceeds UGX 150m. The auto brokerage firm will be required to account through a VAT return and remit the taxes due by the 15^th of the following month.
4. Where the auto brokerage firm is designated as a Withholding Tax Agent, it will be required to withhold tax at 6% on payments for supplies above UGX 1m. Where the auto brokerage firm is making a payment for either management fees or professional fees, it will be required to withhold tax at a rate of 6% if the payee is a resident and 15% if the payee is a non-resident. The auto brokerage firm will be required to account through a withholding tax return and remit the taxes due by the 15^th of the following month.
5. Where the auto brokerage firm is operating as a company, the director(s) may account for their salary through the PAYE system. However, where the director(s) has other sources of income, they are required to account for their income through individual income tax returns.

The taxes may be paid through the various available platforms including over the counter, Electronic Funds Transfer, VISA card services, Real Time Gross Settlement and the use of USSD Code *285# for MTN.

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