On 22 January 2021, the Uganda Revenue Authority (URA) has issued guidance on tax compliance on its website. The guidance includes following measures:
Registration Process
A person liable to pay tax shall apply to the Commissioner for registration in the prescribed manner. Upon registration, a person (individual or non-individual) shall be issued with a Taxpayer Identification Number (TIN). Every person registered for taxes is required to state their TIN on any return, notice, communication or any other document furnished, lodged or used for the purposes of a tax law. A TIN contains 10 numeric digits e.g. 1000223947.
Filing of Tax Returns
A return is a declaration of income a taxpayer periodically makes to URA indicating how they have transacted during that period and will reveal the tax payable for that period. A return should be filed by the due date to avoid incurring penalties for a late submission. The due dates for submission of returns are as indicated below:
- Provisional return due date: By the end of the 6th month from the beginning of the taxpayer’s Year of Income;
- Provisional tax payment due date: On or before the last day of the sixth and twelfth months of the year of income;
- Final return due date: By the end of the 6th month after the end of the taxpayer’s Year of Income (e.g 31st December for the Year of Income that ends on 30th June); and
- Final tax payment due date: Final Income Tax and Rental Tax is payable on or before the last day of the 6th month after the end of the taxpayer’s Year of Income.
Further Clarification
- Filing of a return must be followed up with payment of the tax payable;
- Late filing of a return leads to a penalty;
- Late payment of the tax payable leads to accumulation of interest;
- In the case of an administrative assessment, the amount is payable on the date specified in the Notice of Assessment.
