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.
What is a Tax Clearance Certificate (TCC)?
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.
Section 134 of the Income Tax Act Cap 340 provides that any person who requires a Tax Clearance Certificate shall apply to the Commissioner for the certificate as proof of tax compliance.
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
Read More: HOW TO GET A TAX CLEARANCE CERTIFICATE