Other DT Services
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
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