A textile processing business is required to be registered with;

• Uganda Registration Services Bureau (URSB) for registration of Company or business name.
• Uganda Revenue Authority (URA) for taxes
• Local council authority e.g. KCCA, municipal council, for a trading license

Please note:

Upon registration, you may be required to comply with the   requirements of statutory bodies like;

• Uganda National Bureau of Standards (UNBS)
• National Textile Board (NTB)

For individual

• National ID or any other two of the following valid identification documents: Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card, etc.
• Certificate of registration (incase you are in business)
• Statement of particulars and partnership deeds (in the case of a partnership)

For non-individual

• Company Form 20
• Certificate of incorporation

Click here for details on requirements for registration

• You’re required to visit the URA portal on ura.go.ug
• Click here  to register as an individual
• Click here  to register as a non-individual

As a taxpayer, you’re entitled to rights. However, there are obligations that you must fulfil.

Click here  for your rights as a taxpayer.

Click here  for your obligations as a taxpayer.

Small Business/Presumptive tax

This is a tax charged on businesses whose annual sales exceed UGX 10, 000,000 but below UGX 150,000,000.

Corporation tax

It’s a tax imposed on non-individual players in the sector at a standard rate of 30%.

Value Added Tax (VAT)

VAT is a consumption tax charged at a rate of 18% on all supplies made by taxable persons, i.e. persons registered or required to register for VAT purposes. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.

Click here to register for VAT

Please note:

Businesses that are VAT registered taxpayers are obliged to register for EFRIS and issue e-invoices

Click here for information on how to register for EFRIS

LOCAL EXCISE DUTY

This is a tax that is imposed on specified imported or locally manufactured goods, and services.

 Click here for the applicable excise duty rates

Withholding tax

Withholding tax (WHT) is an income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). If textile processors supply goods above UGX 1 million, the person to whom those goods are supplied charges withholding tax at a rate of 6%. The plant receives a Tax Credit Certificate that helps offset tax liability in the final income tax return.

Please note

The tax withheld is credited or reduced on the tax payable in the final income tax return.

Click here for information on Withholding tax.

Pay As You Earn (PAYE)

This tax applies to a sector player who has employees (administrative or causal labourers) that earn an aggregate in excess of 235,000 per month. This form of tax is withheld every month.

Click here for the PAYE rates

 These returns are filed like any other Income tax returns

Click here for information on how to file your returns.

After filing a return, you’re required to pay taxes due using available payment platforms, e.g. banks, mobile money, VISA, Mastercard, EFT, RTGS, USSD Code (*285#), etc.

Please note: the due date for payment of tax is the same as that of return filing.