Tax Clearance

This is a process initiated by the client to the URA commissioner, to be certified as being compliant with their tax obligation with URA. The client receives a tax certificate from URA confirming that a person’s tax affairs are in order at the date of issue of the Certificate.

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It is tool used to compel non-compliant taxpayers to comply with provisions of regis­tration, filing of returns and payment of taxes. A TCC certifies to a third party that the stated taxpayer is compliant i.e. has fulfilled their obligation of paying taxes.

Persons (tax payers) who require TCCs include those:

  • Providing passenger transport services
  • Providing freight transport service where the goods vehicle used has a load capacity of more than 2 tons
  • Providing ware housing or clearing and forwarding services
  • Supplying goods or services to the Government or
  • Transferring funds in excess of 2,500 currency points from Uganda to a place outside Uganda
  • Who may wish to obtain certificates as evidence of their tax compliance
  • etc. 

 

Annual Tax Clearance Certificate; 

This is issued once a year to clients who have complied with all their tax obligations. This certificate may be issued to only clients whose compliance has been monitored for at least three (3) years.

Transactional Tax Clearance Certificate; 

This is issued to a client upon application if the station head is satisfied that the client is complying with their obligations. It must be addressed to the entity for which the facility was applied for; and once submitted by the client to the third party, the transactional tax clearance expires.

Please Note:

 A Tax Clearance Certificate is required in cases where a client is;

  • Providing transport services for passengers and goods
  • Tendering process with the Government
  • Transferring funds abroad in excess of 50million Uganda Shillings.

  1. An application of a tax clearance certificate will enable the taxpayer reduce on their tax burden since one is prompted to clear up any tax obligation in the course on the year to obtain the certificate.
  2. A Tax Clearance Certificate facilitates easy acquisition of work permits for persons looking forward to work in foreign countries.
  3. It also facilities re-export and import certain restricted goods such as tyres, sugar, etc.”

Cautions

  1. Cancellation of a Tax clearance certificate can be done on request by the client to their office of jurisdiction.
  2. Persons who have not operated for more than three year may not qualify for an annual tax clearance certificate.
  3. The tax clearance certificate will be addressed to the address provided by the client.
  4. When applying for a TCC, the addressee’s correct accounting date should be quoted.

 

  1. The registration profile of the tax payer should be up to date
  2. The tax payer should have submitted all the returns for the registered tax types
  3. For Non-Individuals, the associated persons (directors or partners) MUST have submitted all their returns
  4. The submitted returns MUST be satisfactory
  5. All taxes due to must have been paid by the tax payer or there is a Memorandum of Understanding to pay in installments
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