Automatic Exchange of Information (AEOI)
In 2014, the Organisation for Economic Cooperation and Development (OECD), working with G20 countries, developed the Standard for Automatic Exchange of Financial Account Information in Tax Matters (the Standard), which encompasses the OECD’s Common Reporting Standard (CRS).
The Standard requires Financial Institutions to determine and report financial account information of account holders that are tax resident in a foreign jurisdiction to their tax authority. This information is then automatically exchanged between treaty partners on an annual basis.
Uganda is a member of the Global Forum which she joined in 2012 and implements these initiatives in line with the set international standards on exchange of information to foster tax transparency.
Uganda signed and ratified the Convention on Mutual Administrative Assistance in Tax Matters (the MAAC) which came into effect on September 01, 2016.
Subsequently, Uganda signed and ratified the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (the MCAA) on November 18, 2021 and thereunder adopted the the Standard for Automatic Exchange of Financial Information in Tax Matters (the AEOI Standard) which provides the requirements, mechanisms and procedures to implement Automatic Exchange of Information.
Uganda then enacted the Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act, 2023 that came into force on July 01, 2023 providing for the implementation of AEOI. The Act domesticated the MAAC, the MCAA and the Common Reporting Standard on AEOI which provide for the implementation of AEOI.
Automatic Exchange of Information (AEOI) is a systematic and periodic transmission of “bulk” non-resident taxpayer information by the source country to the residence country concerning various categories of income (e.g. dividends, interest, royalties, salaries, pensions, etc.
To help both account holders and financial institutions comply with their obligations under the CRS, Jurisdictions have made information available concerning;
- The Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act
https://ura.go.ug/en/download/automatic-exchange-of-information-act-2023/ - Their Tax Identification Numbers (TINS) / Unique Identifiers:
https://web-archive.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/index.htm - Tax residence rules
https://web-archive.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/index.htm - Organisation for Economic Cooperation and Development – Common Reporting Standard – FAQs
https://www.oecd.org/content/dam/oecd/en/topics/policy-issues/tax-transparency-and-international-co-operation/crs-related-faqs.pdf
According to Section 6(1) of the Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act, 2023, “A Reporting Financial Institution shall submit a return to the Competent Authority providing information on the account held by a non-resident person or on a reportable account for the year ending December 31st in every calendar year and by the 31st day of May of the following year”.
