- Registration for taxes
- Timely return filing
- Timely payment of tax
For Individual TINs
- National Identity Card
- Certificate of Registration (Sole Proprietorship Businesses)
For Non-Individual TINs
- Certificate of Incorporation
- Company Form 20
Note: You are required to submit copies of signed registration forms with copies of identification documents indicated in the registration form before a TIN is issued.
- Presumptive Income Tax: This is imposed on manufacturers whose annual turnover exceeds UGX 10 million and below UGX 150 million. Filing Presumptive Income Tax
- Non- individual income tax: The income tax rate for a company is 30% of the entity’s chargeable income (gross income less allowable deductions).
- Individual income tax: The income tax rate for individuals depends on the income bracket in which the individual falls.
- 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. All VAT registered taxpayers are obliged to register for EFRIS and issue e-invoices
- Local Excise Duty: This is a tax that is imposed on specified imported or locally manufactured goods, and services. Filing LED (Luganda) (English)
- WITHHOLDING TAX (WHT): This is income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). The tax withheld is credited/ reduced on the tax payable in the final income tax return. Filing WHT
- Pay As You Earn (PAYE): Any person dealing in transport business and has workers earning a monthly salary more than 235,000 per month is required to register for Pay as You Earn (PAYE), withhold and remit tax to URA. Filing PAYE (Luganda)
A return is a declaration of transactions that took place during a particular period for purposes of ascertaining the tax position for that period.
When is a Return Supposed to be Filed?
- Annual returns i.e. Income Tax, within six (6) months from the end of the financial period e.g. taxpayers with 30th June as the accounting date, the deadline to file returns is 31st December every year.
- Monthly Returns i.e. VAT, WHT, PAYE, LED.
This is the 15th day of the month following the return period - Weekly Return i.e. Gaming and Lotteries returns, by Wednesday of every week.
However, you can apply for an extension to seek permission to file a return late but the extension cannot exceed an aggregate of 90 days. This extension shall not change the due date of payment of tax due for that period.
A Taxpayer needs all the information required to file that particular return. E.g. for VAT, you need all purchase and Expenses and Sales (Including all taxable and exempt sales) transactions. Including those transactions where VAT has not been charged or incurred. Currently all transactions for input and output tax should be bearing FDNs from EFRIS.
Impacts of not Filing Returns
- You will suffer penalties for late filing which is Ugx. 200,000 or 2% of the tax liability for the period whichever is higher.
- You also give room for URA to estimate the tax liability for the period through an administrative assessment which at times becomes so inconvenient.