1. UNDERSTAND THE MARKET

This helps you understand your customers/markets, your needs, and analyze your competitors. This enhances decision-making on how to market your products and or services. Research about the market and industry where you are venturing to avoid unnecessary losses.

• Identify your customers and your preferences and needs.
• Find out the current market trends to understand shifts in consumer behavior, technology, and competition.
• Assess and analyze your competitors’ strengths and weaknesses to find opportunities and differentiate your products/services.
• Evaluate the size of your market and its potential for growth, which helps in estimating incomes and expenses.

2. CREATE A FINANCIAL PLAN

This involves outline the financial needs of your business, budgeting for expenses, and identifying potential sources of financing/capital, such as loans, grants or investors. This ensures the business has the necessary capital to operate, grow and track the financial performance of the business.

• Separate and plan your business and personal income and expenses.
• Choose a reliable financial service provider. This can be a SACCO, microfinance or a commercial bank.
• Focus on what the business needs, set financial goals and raise money to meet them.
• Draw a budget which is within your income to avoid getting into debts.
• Save and invest to grow your income.
• Seek financial support where need arises through accessing an affordable bank loan with manageable repayment schedules and plan on how to use it well

3. KNOWLEDGE OF THE BUSINESS LEGAL AND REGULATORY REQUIREMENTS

Gain a thorough understanding of the specific laws and regulations that govern how a business must operate. Following these requirements helps your business avoid legal issues, maintains a good reputation, and ensures smooth operations.

• Register your business name with Uganda Registration Services Bureau (URSB) and obtain a certificate of registration for a business or a certificate of incorporation for companies.
• Acquire a Tax Identification Number (TIN) through the Uganda Revenue Authority (URA) website or by visiting any URA offices near you, or contacting the toll-free helplines 0800117000/0800217000.
• Get a Trading License from KCCA or the Local Government, authorizing you to operate your business in that locality.
• Engage your regulatory body, such as the Uganda National Bureau of Standards, National Drug Authority, among others, for guidance on the regulatory needs.

Note: To register for taxes, you need to have the following:

1. Individual:A National ID or any two identification documentse. Passport, Employment ID, Driver’s License, Refugee ID etc.

• Company: Certificate of Incorporation, Directors’ TINs, Company Form 7 etc.

4. KEEP ACCURATE BUSINESS RECORDS

Maintain accurate and well-organized records of all your business transactions providing a clear view of income earned and purchases and or expenses made. This practice enables you to track profits, which is essential for the overall success and sustainability of the business.

• Ask for receipts from your suppliers whenever you purchase business items.
• Issue receipts to your customers whenever you sell to them.
• Write down your business expenses, and maintain records related to your employees.
• Keep all tax records that demonstrate payments made to URA.

Important things to note about record keeping

1. It is very important for you to keep proper records of all business transactions in English. If you wish to keep records in a different language or currency shall apply in writing with clear reasons to the commissioner for

Note: In case a record is necessary for a proceeding which started before the end of the 5 years, a taxpayer shall keep the record until the end of the proceedings.

1. Keep records for five years after the end of the tax period to which they relate for future
2. 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
3. Apply in writing with clear reasons to the commissioner for permission, if you wish to keep records in a different language or
4. Where a record is not in English, you will be required to meet the cost of translation into English by a translator approved by the

Note: The magnitude of records maintained relate to the size of your business. Businesses that have annual sales exceeding Ugx 500 million must keep audited books of accounts.

5. FULFIL ALL YOUR TAX OBLIGATIONS

Understand your tax obligations and strategize on how to minimize tax liabilities. This lays a foundation for a business on how and when to pay your taxes, which ensures compliance with tax laws.

1. Register for taxes

Register and obtain a Tax Identification Number (TIN). A TIN is a 10-digit number that acts as a taxpayer’s account with URA. It is used for identification and communication with URA and for all tax purposes under all tax laws.

Any person engaging in “business “generating income in Uganda is required to register for taxes. A TIN is personal to the person to whom it has been issued and shall not be used by another person. A TIN is obtained free of charge and therefore no one should charge  you for it.

A TIN enables you to;

• Import or export goods and services within and outside
• Claim tax benefits that accrue to you g. tax refunds etc.
• Access bank loans above 50 million shillings.
• Acquire a trading license from the Local Government / KCCA to undertake business in your
• Register your motor
• Process land transactions above 10 million

How to get a TIN

1. Instant TIN for individuals

Step 1: Visit the URA web portal https://ura.go.ug  and on the home page, click ‘Get a TIN’

Step 2: Next, click ‘Instant TIN Application’

Step 3: On the Instant TIN Application page, click ‘click to apply for an Instant Tin’

Step 4: On the TIN Registration page, select Individual as the applicant category.

Step 5: Fill in the National ID Number (NIN), source of income, and current physical address. Fields labeled with a red asterisk (*) are mandatory fields.

Step 6: Click ‘submit application,’ after first confirming that you are not a robot.

Note:

Where the source of income is employment, the employer’s TIN is mandatory and for a registered business, the business registration date, name and number are also mandatory. After submission, you will get an Instant TIN and a provisional TIN certificate.

1. Through the URA Web portal:

• Visit the URA web portal – https//ura.go.ug.
• Download the appropriate registration form (Individual or Non-Individual).
• Complete the form by filling in the mandatory fields (boxes).
• Upload and submit online the completed form.
• Print a copy of the form and sign it off, and together with the necessary attachments, submit to the nearest URA office.
• Receive an acknowledgment notice of approval of TIN.

1. File correct tax returns (where applicable) before the due dates

A tax return is a declaration in a form prescribed by the Commissioner, on which a taxpayer reports their income for the tax period as a way of self-assessment for taxation purposes.  Once registered with URA for any tax type other than Pay as you earn (PAYE) with a single employer you required to submit a return for the tax period as per the respective tax law.

A tax period is the duration for which a return is required i.e. a year, month or week. A due date is the deadline for filing a return beyond which you are penalized for not filing. Returns are filed online using an electronic system – etax.

Note

1. All tax returns must be submitted in the prescribed format, and the commissioner can appoint any other person to assist a taxpayer who fails to file at his/her cost.
2. The law provides for a separate quarterly return for non-resident suppliers of services deemed to be supplied in Uganda when made to non-taxable persons.

1. Making timely tax payments

You are required to pay your tax liabilities by the due dates of filing the respective returns to avoid the accumulation of interest. Thus, any tax payable is a debt to the Government of Uganda.

You can apply in writing to the Commissioner for an extension to file a return at a later date, but this does not change the payment due date, and thus interest will be charged on any outstanding liability from the date when the payment was due.

Taxes are paid by registering a payment online through the URA web portal or using the Ask URA App (downloadable from Google Store) or dialing *285# and effecting the payment either in the Bank, through Mobile Money or Payway services.

Steps to register a payment

Step I: Visit the URA web portal https://ura.go.ug  and on the home page, click Make a payment

STEP II: From the menu on the left hand side, click Generate a payment slip and select  Click here to register a payment

STEP III: On the payment registration page;

• Under Taxpayer details, provide the taxpayer TIN, taxpayer name, and district/city
• Under period selection, select the tax period for which you are making payment
• Under basis of payment, select the applicable basis of payment

STEP IV: Under payment details>>Tax head, select the correct tax head for which you want to make payment e.g. income tax, and click on load periods.

STEP V: Under load periods, fill in the period for which you are making payment and click Add period

STEP VI: Next, fill in the amount to pay

STEP VII: Under payment methods, enter text from the given image and click Accept and Register.

STEP VIII: Once you have submitted, the payment registration slip will be generated. Take note of the payment registration number that is indicated on the payment registration slip or print the slip and make payment in the bank or via mobile money or any other URA payment modes.

NOTE

• URA or any staff of URA does not receive taxes incash.
• Ensure you withhold all necessary taxes, such as PAYE, before payments are made.
• Plan and estimate your taxes due at the beginning of the year based on the turnover in the previous year.
• Visit your nearest tax office for any questions or assistance.

1. Importation of goods

Goods may be brought into the country upon making a customs entry or declaration, either for;

1. Home consumption: Such goods are imported solely for the purpose of sale or use within Uganda.
2. Warehousing: Where an importer is not ready to clear the goods immediately, the goods must be kept in a customs bonded warehouse until such a time when they can be released for 6months, extendable to 9months
3. Transshipment: Where goods in transit are transferred under customs control from one conveyance to another (e.g from one truck to another or one container to another) within the customs-controlled area or along the gazetted transit route.
4. Transit through: These are goods intended to be consumed in another country (other than the Partner States) so they just go through Uganda before they reach your final destination.
5. Temporary importation: Where goods are imported temporarily for a specific period of time and intended to be returned after use. It is for one calendar year, but can be extended upon seeking an extension from the Commissioner Customs
6. Export processing zones/Free zones. Customs gazetted processing zones that import goods free of tax and are meant to process for export(Not less than 80% should be exported, and not more than 20% can be considered for local consumption)

Goods up to the value of United States dollars two thousand ($2,000) imported by a person/traveler who has been outside Uganda for a period in excess of twenty-four (24) hours shall be allowed a baggage allowance (tax exemption) provided the said goods are in the traveler’s accompanied baggage and are declared to customs. Such goods should not be for distribution, for friends, for relatives or commercial purposes but rather personal effects.

Note. Clearance here does not mandate a clearing agent but is rather cleared on a simplified clearance regime (PB4) that is registered by a customs officer

When goods are brought into a customs area e.g. a border entry point, customs must be informed of the person responsible for fulfilling the customs obligations with regard to the goods on board. This can be the owner of the goods or a third party, including customs brokers, agents, and transporters referred to as declarants.