Other DT Services
This section provides for a waiver on interest and penalties for taxpayers who have outstanding balances as at 30th June 2023 and settle their principal tax liability by 31st December 2024. This means that taxpayers who pay their outstanding tax shall have the interest and penalties removed. Where a taxpayer pays a portion of the principal outstanding tax as at June 30th, 2023, by December 31st, 2024, the portion of interest and penalties waived shall be proportionate to the principal tax paid.
Section 47A is an extension of the previous Section 40D of the TPC Act whose deadline was 31st December 2023. It means that the period in which taxpayers have to pay has been extended to 31st December 2024. This incentive is to encourage taxpayers to clear their outstanding balances without the pressure of interest and penalties.
Taxpayers who have tax liabilities as at 30th June, 2023 and have made/make payments of their outstanding principle tax between 01st July 2023 to 31st December 2024. This means that the waiver does not consider periods after 30th June 2023.
The waiver applies to all domestic taxes, namely income tax, value-added tax (VAT), local excise duty, rental tax, Pay as You Earn (PAYE), and gaming tax, among others. Customs taxes are, however, not covered by this provision.
To register a payment for the outstanding principal tax;
- Log into your URA account on the URA portal, https//:ura.go.ug using your TIN and password.
- Select “Payment” under “e-Services.”
- Select DT as a “Payment Type.”
- For periods before July 2021, select “Period before July 2021,” then “Tax Head,” and select “Pay Fully.”
- For periods after July 2021, click “Account Payment”, select “Tax Type”, “Fetch Outstanding”, then click on “Show Period-wise Break up” to view the principal tax per period.
Please contact URA immediately for assistance in reconciling any inconsistencies in order to benefit from the waiver.
There is no application required.
Yes. The waiver has a deadline for payment of the outstanding principal tax, i.e., 31st December, 2024. Therefore, all taxpayers who qualify for the waiver of interest and penalty should pay their outstanding principal tax by 31st December 2024 to benefit from the waiver.
As soon as you pay your principal tax outstanding as at June 30th, 2023, the interest and penalties relating to the principal tax paid shall be waived off.
Where you cannot clear all the outstanding tax, pay a portion of the principal tax outstanding as at June 30th, 2023, and the portion of interest and penalties waived will be proportional to the principal tax paid.
For example:
John has a tax liability of Ug.shs. 3,000,000 as at 30th June 2023 where the Principal Tax is UGX 2,000,000, and the interest and penalties are UGX 1,000,000. If John pays 5O% of the Principal Tax (UGX 1,000,000) on 20th November 2024, the interest and penalties waived will be 50% of the interest and penalties relating to the principal tax paid ie (50%X1,000,000). This implies that UGX 500,000 will be waived.
Yes. Any taxpayer with a tax liability as at 30th June, 2023 and makes payment between July 1st 2023 to December 31st 2024 towards their outstanding principal tax qualifies for the waiver to the extent of the principal tax paid.
This means that the amount of the penalties and interest already paid will become your tax credit on your ledger and used to offset all your tax liabilities. In case the amount exceeds 10 million shillings, and there is no pending liability, you can apply for a refund.
Yes. The penalties will be waived. The move is done to encourage taxpayers to file their returns and reduce the tax burden.
Yes. Any penalties and interest relating to tax liabilities as at 30th June, 2023 shall be waived as long as the outstanding principal tax is paid between July 01st 2023 to December 31st 2024.
The penalties and interest against the principal tax of the month of June 2023 do not qualify for this waiver because the penalties and interest under consideration are those as at 30th June 2023.
No, the waiver does not apply to any interest and penalties accrued after 30th June 2023. Taxpayers are advised to pay their outstanding principal tax as soon as possible to avoid further accumulation of interest and penalties.
No, tax returns whose due date falls after 30th June 2023 do not qualify for the waiver, even when submitted by 30th June 2023. This is because the accumulation of interest and penalties starts after the return due date.
For example:
- The monthly returns for June 2023 e.g. PAYE is due on 15th July 2023 and the accumulation of interest and penalties is after 15th July 2023. By 30th June 2023, there is no interest and penalties against principal tax for the month of June 2023.
- The annual final income tax return for for those with a substuted year of income, running between January 2022 – and December 2022 is due by 30th June 2023. Accumulation of interest and penalties against the principal tax start on 1st July 2023 meaning that by 30th June 2023, there is no interest and penalties against the principal tax, hence no need for a waiver.
- The annual final income tax return for the year of income July 2022- June 2023 is due by 31st December 2023. By 30th June 2023, there is no interest and penalties against the principal tax. Accumulation of interest and penalties against the principal tax starts on 1st Jan 2024. Hence no need for a waiver.
Yes, liabilities as at 30th June 2023 qualify for the waiver, even when the return is submitted after 30th June 2023. Please note, however, that the waiver does not apply to any interest and penalties accrued after June 30th, 2023.
Yes. The waiver does not cover penalties and interest not directly related to the principal tax. Specifically, the following are excluded from the waiver:
- Penal tax for failure to provide information.
- Penal tax related to digital tax
- Penal tax related to non-compliance with EFRIS.
- Penal tax for failing to apply for tax registration.
- Penalty and interest related to principal tax for the period 1st July 2023 onwards.
- Any court-imposed penalties and interest.
Any Person (individual or Non-Individuals (Partnerships, Companies) who has been registered by the Tax Agents Registration Committee
- Preparation, certification, and filing of tax returns, information returns, or other statements or reports required by the URA;
- Preparation of requests for rulings, petitions for re- investigation, protests, objections, requests for refund or tax certificates, compromise settlements and or abatement of tax liabilities and other official papers and correspondences with the URA; and
- Represents taxpayers in meetings and hearings in all matters relating to a taxpayer’s rights, privileges or liabilities under the laws or regulations administered by the URA.
Yes. With effect from 1 July 2016, tax agents are required to apply for registration in order to act for and on behalf of taxpayers.
Please note: The requirement to register does not apply to an advocate acting as an advocate to a taxpayer.
An individual, partnership or a company may apply to the committee for registration as a tax agent.
An application for registration shall be in the prescribed form and accompanied by a prescribed fee.
| Category | Application fees (non-refundable fee payable upon application) UGX | Registration fees (payable upon approval of application) UGX | Nominee fees (payable for each nominee upon approval) UGX |
| First time registration | 200,000 | 500,000 | 200,000 |
| Renewal | 200,000 | 500,000 | 200,000 |
| Amendment to add or substitute nominee(s) | 200,000 | NIL | 200,000 |
The Tax Agents Registration Committee (“TARC”) handles tax agent registration.
The mandate of the TARC is to handle registration of tax agents, renewal of registrations and cancellation of registration.
The TARC comprises of the following:
- The Commissioner or a representative to act as the chairperson;
- A representative from the accounting profession nominated by ICPAU;
- A representative from the legal profession nominated by the Uganda Law Society; and
- Two members from the private sector with expertise or relevant experience in economics, finance or taxation, to be appointed by the Board of the
I. Natural persons
A natural person must a fit and proper person to prepare tax returns and transact business with the URA under the tax laws on behalf of a taxpayer.
II. Partnership or a company
The partner or employee specified in the application as the nominee of the partnership or company is a fit and proper person to prepare tax returns and transact business with the Commissioner; and
- A partner in the partnership or a director, manager or other executive officer of the company is of high integrity and good
An individual applying for registration as a tax agent or a nominee of a partnership or company applying as a tax agent is required to have any one of the following qualifications:
- A degree or postgraduate award from an approved tertiary institution in the discipline that is relevant for the provision of tax agent services; or
- Successfully completed a course in taxation that is recognized by the TARC; or
- Have been engaged in full time tax practice for an equivalent of 24 months in the preceding five
A tax agent’s certificate of registration is valid from the date of issuance of the certificate to 31st December every calendar.
A tax agent is required to apply to the TARC for renewal of registration within 21 days before the date of expiry of the registration or a later date as allowed by the Committee.
The TARC will renew the registration if the tax agent still meets the requirements for registration
A partnership or company registered as a Tax Agent may apply to the TARC, in the prescribed form and accompanied by a prescribed fee, to register a partner of the partnership or an employee of the company as an additional or substituted tax agent.
The nominated partner or employee is required to have the above mentioned qualifications and the TARC must be satisfied that the nominee is a fit and proper person to prepare tax returns and transact business with the URA under the tax laws on behalf of a taxpayer.
A partnership registered as a Tax Agent is required to notify the TARC in writing:
- Within seven days after a change in the composition of the partnership; or
- Within seven days before dissolution of the partnership
A company registered as a Tax Agent is required to notify the TARC in writing:
- Within seven days after the registered nominee who is an employee ceases to be employed or a person becomes a director, manager or other executive officer of the company; or
- Within seven days before the company goes into
Yes. A Tax Agent who ceases to carry on business as a tax agent or who no longer wishes to be registered as a Tax Agent, shall apply to the TARC, within seven days after ceasing to carry on business, for their registration to be cancelled.
The TARC may cancel a Tax Agent’s registration if satisfied that:
- In the case of an individual, the person is no longer fit and proper to prepare tax returns and transact business with the URA on behalf of a taxpayer;
- In the case of a partnership, the additional or nominated partner has ceased to be a partner in the partnership or the partnership has applied to the TARC to cancel the registration of the partner;
- In the case of a company, the nominee has ceased to be employed by the company or the company has applied to the TARC to cancel the registration of the employee;
- A tax return prepared and delivered by the tax agent is false in any material particular, unless the tax agent establishes to the satisfaction of the TARC that it was not due to any willful or negligent conduct of the tax agent;
- The Tax Agent has ceased to meet the requirements for registration as a tax agent; or
- The Tax Agent has ceased to carry on business as a Tax A
Visit the URA web portal at https://ura.go.ug and follow the steps below:
- Log into your TIN account;
- Under e-registration:
- Select Tax Agent Registration if you are a new applicant;
- Select Renewal of Tax Agent Registration if you are renewing your registration;
- Click next, fill the application form and submit;
- Print the submitted form, e-acknowledgement receipt and Payment Registration Slip;
- Pay application fees;
- Submit the signed application form together with a copy of proof of payment of application fees and a Transactional Tax Clearance Certificate to the nearest Domestic Taxes Office
What is a Formal Business?
A formal business is one that has registered with Uganda Registration Services Bureau (URBS) and obtained a business or Company name, registered for taxes with URA and obtained a Tax Identification Number (TIN) and has secured permission to trade in any desired area/place through obtaining a trading license.
Note: If your business is not registered by these agencies, then you are informal.
What are business records?
A business record is a document that shows transactions that a business has carried out in a given period. The record can be on physical paper or in electronic form or both. It should be kept for 5years (or more if the records are needed for ongoing proceedings by URA). All businesses must keep records in an organized way with satisfactory details of their operations. These records also provide details to determine your tax obligations and entitlements.
If the records are not in the English language, you are required to translate them at your cost. Otherwise, you need the permission of the commissioner to keep your records in any other language.
What tax registration requirements must I fulfil?
A person liable to pay tax shall apply to the Commissioner for registration in the prescribed manner. Upon registration, a person (individual or non-individual) shall be issued with a Taxpayer Identification Number (TIN). Every person registered for taxes is required to state their TIN on any return, notice, communication or any other document furnished, lodged or used for the purposes of a tax law. A TIN contains 10 numeric digits e.g. 1000223947.
What is a small business?
A Small Business Taxpayer for income tax purposes is a resident taxpayer whose gross turnover from all businesses owned by such a person in a year is above 10 MILLION shillings but is less than 150 MILLION shillings. The term TURNOVER refers to one’s total sales in a year. The legislation is provided for in Part II Section 4(5) and the Second Schedule of the Income Tax Act Cap 340.
Read More: KEY FINANCIAL MANAGEMENT SKILLS FOR SMALL BUSINESSES
TAXPAYER REGISTRATION STARTER PACK
Vol. 1, Issue 3
FY 2022-23
Dear Esteemed Client,
Thank you for registering for taxes. We promise you a great experience as you embark on this journey of fulfilling your tax obligations.
OUR VALUE PROPOSITION
We promise simplified, timely, reliable and convenient revenue services everywhere at a minimum cost to you.
What is Voluntary Disclosure?
Voluntary disclosure is a process where the taxpayer discloses information related to tax liabilities, misstatements or omissions his or her tax declarations to Uganda Revenue Authority (URA) without being prompted by any action or threat of action by URA.
Such actions include; initiation of a tax investigation, a request for tax information, a tax advisory letter, a tax health check/review, a Notice of audit, a tax query or compliance visit by URA officers.
Voluntary Disclosure also covers persons engaged in income generating activities who are not yet registered or whose registration details are inaccurate. Those who voluntarily register for taxes can apply and will be required to pay only the principal tax due for the period of their noncompliance.
What is withholding tax?
Withholding tax (WHT) is a form of income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). This tax is deducted at source and remitted to URA in advance by the withholding agent.
The law stipulates the persons who are required to withhold the tax and the persons from whom the tax is withheld. This depends on the nature and the circumstances of the transaction.
TRANSITION TO THE NEW LOG BOOK (VALIDATION OF MOTOR VEHICLE PARTICULARS)
What is validation of a motor vehicle
To validate your motor vehicle means to re-capture your vehicle particulars on the hard paper log books into the system so as to be given the new A4 log books.
Issuance of the new A4 log books commenced
Introduction
What is EFRIS?
EFRIS in full is Electronic Fiscal Receipting and Invoicing Solution. EFRIS is an initiative under the Domestic Revenue Mobilization Program whose aim is to address the tax administration challenges relating to business transactions and issuance of receipts.
It is a new smart business solution used to record business transactions and share the information with URA in real time (concurrently). It involves the use of e-Invoicing through the URA web portal and direct communication with business transaction systems (system to system connection), electronic Fiscal Devices (EFDs) and Electronic Dispenser Controllers (EDCs) to manage the issuance of e-receipts and e-invoices.
What is hotel and accommodation sector?
The hotel and accommodation sector is a branch of hospitality industry that involves establishments that provide travelers with shelter/lodging, food, refreshments, and recreational services like entertainment, and personal services on a commercial basis.
What is a hotel?
The Income tax Act defines an approved hotel as an industrial building licensed by the appropriate authorities for use, at a price, for boarding and lodging with at least;
- Ten bedrooms with minimum facilities of bed and breakfast, toilet and bath or shower room; and
- Restaurant or dining room for provision of food and beverages
These can include resorts hotels/suites, apartment
What is a small Business?
This is a business that makes total sales between Ugx 10,000,000 and 150,000,000 in a year. This business should at least make sales of Ugx 27,500 in a day.
What is tax on small businesses?
This tax, also known as presumptive tax is charged by Uganda Revenue Authority from operators of small businesses.
Who pays this tax?
This tax is paid by the owners of small businesses.
Does every owner of a business in this sales category pay this tax?
No. professionals for example persons in dental, medical, engineers, accountants, and architectural practice among others do not pay this tax.
TOURISM AND TOUR OPERATIONS SUB SECTOR OVERVIEW
What is tourism?
Tourism involves the short-term movement of people to destinations outside the places where they normally live and work. It also involves the activities of people who travel for recreation, holiday, business, sports and leisure activities.
When am I considered a player in the tourism sector in Uganda?
You’re considered a player in the tourism sector if you operate tourism sights/destinations, accommodation, food service activities, tour operations, travel agency, arts and culture sectors.
What does transport sector consist of?
The transport sector in Uganda is divided into four modes. i.e. Air, Road, Water and Rail.
How do I register my transport business?
All businesses in the transport sector in Uganda are required to be registered with
- Ministry of Works and Transport for permits and licenses
- Uganda Revenue Authority (URA) for taxes
- Local council authority e.g. KCCA, municipal council, for a trading license
Who is a VAT registered taxpayer?
This is a business that makes total sales above Ugx 150,000,000 in a year and deals in taxable supplies.
If you run any business in this category and are not yet registered, you’re advised to register for VAT.
What is wholesale trade?
Wholesale trade is the buying of goods in large quantities and selling them to the retailer in relatively large quantities.
Wholesalers sometimes sell goods directly to final consumer in small quantities.
What is retail trade?
Retail trade is the buying of goods from wholesalers or distributors and selling them to final consumers in small quantities.
- Kindly note that the service is available online. Please visit the URA web portal, ura.go.ug and Login to your account with TIN and password.
- Under e-services, select objection and Appeals with Liability (If the communication contains any obligation to pay)
- Enter the Assessment number, date you received the notice, select the objection type and the ground of objection.
- Tick the disputed details and type in the amount you are disputing, click next
- Click on excel download to download the return, Go to section B-C and type the amount of tax you are allowing to pay in the field line 17 (If it is an estimated assessment) or edit the details to derive the acceptable tax liability (If it is an additional assessment) and Validate to generate an upload file
- Click on browse to select the upload file and click upload.
- You will be notified when upload is finished and after submit you will get an acknowledgement receipt and print and take to the tax office for processing with any attachment that may be vital to support your objection.
Note: You are kindly advised to object on line within 45 days from the date of service of the assessment.
- Kindly note that the service is available online. Please visit the URA web portal, ura.go.ug and Login to your account with TIN and password.
- Under e-services, select objection and Appeals with Liability (If the communication contains any obligation to pay)
- Enter the Assessment number, date you received the notice, select the objection type and the ground of objection.
- Tick the disputed details and type in the amount you are disputing, click next
- Click on excel download to download the return and save. If you are objecting to the whole amount select YES to nil return in sec: A-F otherwise edit the details to derive the acceptable tax liability and Validate to generate an upload file
- Click on browse to select the upload file and click upload.
- You will be notified when upload is finished and after submit you will get an acknowledgement receipt and print and take to the tax office for processing with any attachment that may be vital to support your objection.
OBJECTIONS AND APPEALS
KEY DEFINITIONS
Objection
An Objection is a communication in writing from a taxpayer to the Commissioner showing dissatisfaction with a tax decision (e.g. an assessment) raised on the taxpayer.
Tax Decision
A tax Decision means an assessment raised on the taxpayer or a decision on any matter left to the discretion, judgement, direction, opinion, approval, satisfaction or determination of the Commissioner.
Objection Decision
This is a decision made by the Commissioner General of Uganda Revenue Authority to allow the objection made by a taxpayer either in whole or in part and amend the tax assessment in whole or in part or disallow the objection.
Reviewing Body
This means the Tribunal, the High Court, the Court of Appeal and the Supreme Court.
What is objection?
An Objection is a communication in writing from a taxpayer to the Commissioner/Commissioner General expressing dissatisfaction with a tax decision within forty five days after receipt of notice of a tax decision.
An objection shall be in the prescribed form and shall state the grounds upon which it is made and must contain sufficient evidence to support it.
Who is required to do it?
A taxpayer who is dissatisfied with a tax decision issued by the authority
Why should one object?
- a) To have a platform for a fair hearing regarding particular tax decision issued.
- b) The objection process can facilitate issuance of an objection decision to an assessment by affirming ,reducing, increasing or otherwise varying the assessment the objection relates OR
In case of any tax decision by affirming, varying or setting aside the decision
