Boda boda owner/rider

Who is a boda-boda owner/rider?

This is an individual/company that operates a motor cycle for commercial purposes.

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If you wish to operate a boda boda business, you are required to register with:

  • For non-individual you can register a company name with URSB. Uganda Revenue Authority (URA) for taxes
  • Secure a third party or comprehensive policy with any insurance company.
  • Abide by any regulations passed by local government authority.  

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 (incase of a partnership)

For non-individual

  • Company Form 20
  • Certificate of incorporation

Click here for more information on registration

As a taxpayer, you’re entitled to your rights. Equally, there are obligations that you must fulfill.

Click here for your rights  as a taxpayer

Click here for your 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

No, the owner in whose names the motor cycle is pays this tax. However, if you become the owner, you’re required to transfer the motorcycle into your names and begin to pay the tax.

No, your boss is the one responsible to pay the tax. Always remind your boss to pay Advance income tax on time to avoid inconveniences. 

What do I do if I purchase a motor cycle?

If you purchase a boda boda, ask the registered owner to generate transfer forms such that it is registered in your names.

Please note: Both of you must have TINs

 

For more information, visit the nearest URA office for assistance or call the toll-free lines 0800117000/0800217000 or WhatsApp: 0772140000

  • 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

 

Click here to download Advance tax on transport sector guide
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