Motor Vehicle Ownership and TIN Records
What procedure exists for taxpayers who sold motor vehicles many years ago but were unable to complete the transfer of ownership, and the vehicle remains attached to their TIN?
Dear Reader,
A person who disposes off a motor vehicle to another person is required to transfer ownership of the vehicle within 3 months after the sale. Where ownership is not transferred within the prescribed time, both the seller and buyer are liable to a fine of UGX 300,000 or imprisonment for a period not exceeding 6 months.
Where a person sold the motor vehicle years ago but did not effect the change of ownership, they are required to contact the person they sold the motor vehicle in order to obtain their TIN and initiate the transfer to that person. Where you cannot trace the buyer, you are required to advertise in a newspaper of wide circulation requesting the person who bought the motor vehicle and/or the person who is in possession of the motor vehicle to contact you for purposes of initiating the transfer.
Where the person does not come forth within 2(two) weeks after publication of the advertisement, you are required to write to the Chief Licensing Officer notifying him or her about the sale and failure to locate the buyer.
Kindly note that motor vehicle registration is now the mandate of the Chief Licensing Officer under the Ministry of Works and Transport. For further assistance call please contact the Chief Licensing Office at the Motor Vehicle Registration office on 0200 420000.
Where the person in possession of a motor vehicle cannot trace the registered owner because the vehicle has been sold multiple times, can URA remove the vehicle from the original owner’s TIN records?
Dear Reader,
URA cannot remove a motor vehicle registration record from a person’s TIN.
Where a person in possession of a motor vehicle cannot trace the registered owner because the vehicle has been sold multiple times. The person with the vehicle is required to advertise in a newspaper of wide circulation requesting the registered owner to contact them and initiate the transfer process.
Where the person does not respond within 2(two) weeks after publication of the advertisement, you are required to obtain a court order authorizing the transfer of the motor vehicle.
Thereafter, submit the court order along with the following documentation to the Chief Licensing Officer:
- A copy of the motor vehicle registration book;
- A copy of the sales agreement;
- A copy of the buyer’s identification;
- A copy of the seller’s identification and their contact, if possible.
- The newspaper Advert.
- Vehicle inspection report
How can taxpayers protect themselves from future liabilities, penalties, or obligations arising from vehicles that were sold but not formally transferred?
Dear Reader,
A person who disposes off a motor vehicle to another person is required to transfer ownership of the vehicle within 3 months after the sale. Where ownership is not transferred within the prescribed time, both the seller and buyer are liable to a fine of UGX 300,000 or imprisonment for a period not exceeding 6 months.
Buyers are advised to conduct due diligence prior to purchasing a motor vehicle to establish the correct details of the registered owner or any encumbrance or tax liabilities.
Kindly note that motor vehicle registration is now the mandate of the Chief Licensing Officer under the Ministry of Works and Transport. For further assistance please contact the Chief Licensing Officer at the Motor Vehicle Registration office on 0200 420000.
Is URA considering a simplified mechanism for regularizing ownership records of long-disposed vehicles where transfer documentation is no longer available?
Dear Reader,
Thank you for your inquiry.
Please note that the management and registration of motor vehicles is no longer under the mandate of URA. This function was transferred to the Licensing Office under the Ministry of Works and Transport.
As such, matters relating to ownership records, transfer regularization, and missing vehicle transfer documentation are now handled by the Licensing Office. We encourage affected members of the public to engage the Ministry of Works and Transport for guidance on any simplified mechanisms or procedures that may be in place to regularize ownership records for long-disposed vehicles.
URA remains available to support taxpayers on tax-related matters.
Reducing delays in customs clearance
What measures is URA implementing to reduce delays in customs clearance that sometimes lead to demurrage costs for businesses when trucks or containers are held at ports or border points?
Dear Reader,
Uganda Revenue Authority (URA) has implemented a number of measures aimed at reducing customs delays. These include:
- The Single Customs Territory (SCT) which has reduced transit times from 18 days to under a week,
- Regional Electronic Cargo Tracking System (RECTS) for real-time tracking,
- The Authorized Economic Operator (AEO) program that provides compliant businesses with expedited, blue lane clearance.
These efforts, together with One-Stop Border Posts (OSBPs) and pre-arrival declaration systems, greatly reduce delays in cargo clearance and lower the cost of doing business. Importers are encouraged to provide complete and accurate information about their goods during declaration and submit all authentic supporting documents to enable faster and smoother clearance.
If I fail to pay tax on imported goods, how long does it take before the government auctions them? Can I request more time to pay tax on imported goods? Is it possible to pay taxes in installments to avoid my goods being auctioned? Juma from Mbale.
Dear Juma,
When importing goods, you are required to assess and declare the taxes payable on your shipment. If you are unable to pay all the taxes at once, you have the following options:
- Warehousing and Partial Clearance:
You may warehouse your goods for up to 180 days, with a possible extension of an additional 90 days upon request. During this period, you can choose partial clearance, where you clear part of the goods by paying taxes for only the portion you wish to take, and pay the remaining taxes later.
- Installment Payment Arrangement:
You may also apply to the Commissioner for Customs for permission to pay the taxes in monthly installments.
The key difference between the two options is that installment payments attract monthly interest, while partial clearance does not. However, installment payment allows you to take all your goods at once, whereas partial clearance only allows you to collect the goods for which taxes have already been paid.
If an importer fails to clear their goods completely, URA may auction the goods in accordance with the East African Community Customs Management Act (EACCMA). In such cases, the importer will first be notified and given 30 days to clear the goods. If they fail to do so within that period, Customs will proceed to sell the goods through a public auction.
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