What is construction?
Construction is the action of building, repairing, renovating, and maintaining infrastructure that can be in the nature of; residential, commercial, industrial facilities and associated activities.
It typically starts with planning, financing, and design, then continues until the structure is built and ready for occupancy.
Construction also covers repairs and maintenance work, any works to expand, extend and improve the structure value and impression, and its eventual demolition, dismantling or decommissioning.
How do I register a business in the construction sector?
All businesses in Uganda are required to be registered with;
- Uganda Registration Services Bureau (URSB).
A certificate of incorporation and Company form 20 will be issued, if registered as a Limited Liability Company.
- Uganda Revenue Authority (URA) for taxes i.e. issuance of a TIN. (Taxpayer Identification Number.)
- Local council authority e.g. KCCA, municipal council, for a trading license
Upon registration, construction companies are required to comply with the Regulatory Framework of bodies like;
- National Construction Authority (NCA)
- National Building Review Board (NBRB)
- Architects Registration Board. (ARB)
- Uganda National Association of Building and Civil Engineering Contractors (UNABCEC).
- Engineers’ Registration Board. (ERB)
What do I need to register for taxes?
- National ID
- Certificate of registration
- Company Form 20
- Certificate of incorporation
Click here for more details on registration
How do I register for taxes?
- You’re required to visit the URA portal on ura.go.ug
- Click here to register for an individual
- Click here to register as a non-individual
What are my rights and obligations as a taxpayer?
As a taxpayer you are entitled to your rights. Equally there are obligations you must fulfill.
Click here for your rights and obligations as a taxpayer
What kind of records do I have to keep?
A business has to keep records relating to all its transactions. It is important to always have records that are dated so that you can understand which reports relate to what period. These include;
- Record of income realized in a given year
- Record of receipts / invoices and payments
- Record of debtors and Creditors
- Payroll for your employees if applicable
- Import schedules if applicable
- Contracts for supply
- Bank statements
- Utility bills
- Stock records
- Asset registers
What do I need to know regarding record keeping in my construction business?
It is very important for taxpayers to;
- keep proper records of all business transactions in the English language.
- keep records such that it is easy to determine their tax liability.
- keep records for five years after the end of the tax period to which they relate for future reference.
- In case a record is necessary for a proceeding that started before the end of the 5-year period, a taxpayer shall keep the record until the end of the proceedings.
- The records kept should contain sufficient transaction information and should be saved in a format that is capable of being recovered and converted to a standard understandable record format.
- A taxpayer who wishes to keep records in a different language or currency shall apply in writing with clear reasons to the commissioner for permission.
- Where a record is not in English, the taxpayer will be required to meet the cost of translation into English by a translator approved by the Commissioner.
How do I pay taxes to URA?
After filing a return, you’re required to pay the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.
Please note: the due date for payment of tax is the same as that of return filing.
In case further assistance, you can visit the nearest URA office for assistance or call the toll-free lines 0800117000/0800217000 or WhatsApp: 077214000