Overview of the Transport sector
What does transport sector consist of for tax purposes?
The transport sector in Uganda puts more emphasis on passenger and goods vehicles for tax purposes.
All businesses in the transport sector in Uganda are required to be registered with
- Ministry of Works and Transport for licenses
- Uganda Revenue Authority (URA) for taxes
- For non-individual you can register a company name with URSB.
- Secure a third party or comprehensive policy with any insurance company.
For individual
- National ID
- Certificate of registration
For non-individual
- Company Form 20
- Certificate of incorporation
Click here for more information on 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
In case you cannot register online, visit the nearest URA office for assistance or call the toll-free line 0800117000/0800217000 or WhatsApp: 0772140000
As a taxpayer, you’re entitled to your rights. Equally, there are obligations that you must fulfill.
Click here for your rights and obligations as a taxpayer
Advance Income tax – for all players
Advance income tax is paid by passenger service vehicles and goods/freight vehicles.
Owners of such vehicles are required to pay Advance income tax once every year for each vehicle.
Please note
At Transport Licensing Board (TLB), you will be issued a single assessment (PSV + Advance income tax).
Pay As You Earn (PAYE) – paid by employees in this sector who earn above UGX 235,000 per month. The employer withholds on the employee’s salary and remits it to URA.
Click here for PAYE rates
Withholding tax – will be paid by the vehicle owner in case you supply services to a designated withholding agent when the invoice value is above UGX 1,000,000
Value Added Tax (VAT) – for players who generate income from transport service that exceed UGX 150,000,000 in a given year, are expected to collect VAT on every transaction that is invoiced (EFRIS)
The rates of Advance income tax are stated below:
|
Sn |
Type of vehicle |
Amount (in UGX) per ton or passenger per year |
|
1. |
Motor cycle |
20,000 per seat per year |
|
2. |
Passenger Service Vehicles (PSVs) |
20,000 per seat per year |
|
3. |
Goods/freight vehicles above 2 tones |
50,000 per ton per year |
Non- individual income tax
The income tax rate for a company is 30% of the entity’s chargeable income (gross income less allowable deductions).
Please note
What you have paid under Advance income tax is credited/reduced on the tax payable in the final income tax return.
Individual income tax
The income tax rate for individuals depends on the income bracket in which the individual falls.
Players in this sector are reminded to file a final Income tax return at the end of every year. This will help them offset what has been paid in the course of the year
Click here for Income tax rates
Please note
At the end of the year, URA advises you to file your final income tax return to provide for all expenses incurred in the course of the year (for individuals and non-individuals).
Click here for details on return filing
- Visit the URA web portal on ura.go.ug
- Click on e-Services, Payment registration
- Input your TIN
- Select tax head as Income tax – Advance tax for motor vehicles
- Select original assessment
- Input your vehicle registration number
- Input TIN
- Select the assessment year
- Enter text from the given image
- Click submit
|
 INCOME TAX |
|||
|
 Beneficiary |
 Incentives |
Period of Incentive |
Conditions for the Tax Incentive |
|
 Aircraft Operators |
Income Tax exemption for Aircraft Operators |
Indefinite |
Applies to persons engaged in air transport for domestic and international traffic or aircraft leasing. |
|
Foreign transporters
|
Exemption of income derived from transportation of passengers or goods or mail embarked outside Uganda |
Indefinite |
Transportation of passengers or goods or mail must have embarked outside Uganda |
|
Description |
                Tax incentive |
|
Commercial Vehicles of gross weight 20 tonnes and above. |
Free of import duty for one year, VAT is payable |
|
Road Tractors for semi – trailers. |
Free of import duty for one year, VAT is payable. |
|
Goods carrying vehicle with gross vehicle weight exceeding 5 tones but not exceeding 20 tonnes |
Import duty is 10% instead of 25% for one year |
|
Ships and other vessels include the following 1.      Passenger and cargo vessels of all kinds of twenty-five tonnage net weight or more 2.      Cable ships, floating factories, whale catching vessels, trawlers and other commercial fishing vessels EXCEPT sport fishing vessels 3.      Weather ships, hopper barges, lighters and pontoons (being flat decked vessels used for transportation of persons or goods) 4.      Ferry boats, parts and accessories EXCEPT batteries and sparking plugs |
Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
