How to File Your Taxes in Uganda: A Step-by-Step Guide

by Samuel Kagamba

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Filing taxes is an essential responsibility for individuals and businesses in Uganda. The Uganda Revenue Authority (URA) oversees the collection of taxes, and understanding the process can help ensure compliance and avoid penalties. This guide will walk you through the steps of filing your taxes in Uganda.

1. Determine Your Tax Obligations

Before filing, it is crucial to determine what taxes apply to you or your business. In Uganda, common taxes include:

Income Tax: Applicable to individuals and businesses earning income.
Value Added Tax (VAT): Charged on the supply of goods and services.
Pay As You Earn (PAYE): Employers deduct this tax from employees’ salaries.
Corporate Tax: Levied on the profits of corporations.
Withholding Tax: Deducted at the source on payments like dividends, interest, and payments to contractors.

2. Register for a Tax Identification Number (TIN)

A Tax Identification Number (TIN) is mandatory for all taxpayers in Uganda. If you do not already have a TIN, you can register for one through the URA's online portal. Here’s how:

Visit the URA e-Services Portal.
Select “eServices” and then “TIN Registration.”
Fill in the required details and submit the application.
After approval, your TIN will be issued electronically.

3. Maintain Accurate Financial Records

Keeping accurate and up-to-date records of all your financial transactions is essential for proper tax filing. This includes:

Sales invoices and receipts
Purchase records
Payroll records (for businesses)
Bank statements
Expense reports

Proper bookkeeping ensures that you can correctly calculate your tax liability and provide necessary documentation if required by the URA.

4. Calculate Your Tax Liability

Once you have your records in order, calculate your tax liability. For businesses, this involves determining your gross income and then applying the relevant tax rates:

Individuals: Taxed on a graduated scale based on income.
Corporations: Generally taxed at 30% of their taxable income.
VAT: The standard rate is 18%, but some goods and services may be exempt or zero-rated.

You can use the URA’s online tax calculators to simplify this process.

5. File Your Tax Returns

Filing tax returns in Uganda is done electronically through the URA portal. Here’s a step-by-step process:

Log in: Go to the URA e-Services Portal and click login button on the right hand side. Select "Portal" and log in with your TIN and password.
Select the appropriate return:On the left menu, via e-services, select return. Now under "File a return", Choose the correct return form for the tax you are filing (e.g., income tax, VAT, PAYE). For filing income tax, look under "Annual" section and select what you want to file. There are several options ie Income Tax Final, Income Tax Provisional, Income Tax for Presumptive Taxpayers, etc. Income Tax Provisional refers to your declaration of the amount of money you expect to make in the current financial year while Income Tax Final is a declaration of your actual earnings in the just concluded financial year. You may need to download the form for filling offline especially for Income Tax Final. While filling the downloaded excel sheet, please remember to enable macros in your sheet before you can fill. It will make the filling a lot easier for you.
Fill in the details: Complete the form with the required information, including income details, deductions, and tax credits.
Submit the return: Once completed, submit the return online. You will receive an acknowledgment receipt upon successful submission.

6. Pay Your Taxes

After filing, you must pay the taxes owed. The URA provides several payment options:

Bank Payment: Generate a payment registration number (PRN) through the URA portal, then pay at any URA-partnered bank.
Mobile Money: Payments can also be made via mobile money platforms by following the URA’s guidelines.
Online Payment: Direct online payments are available through the URA’s e-Payment system.

Ensure you pay by the deadline to avoid penalties and interest on late payments.

7. Keep Your Records Safe

After filing and payment, retain all records, including:

Tax return forms
Payment receipts
Correspondence with the URA

These documents may be required for future reference, audits, or in case of disputes with the tax authorities.

8. Seek Professional Assistance if Needed

Tax laws can be complex, and it may be beneficial to seek the assistance of a tax consultant or accountant, especially for businesses. Professionals can help ensure that your tax returns are accurate and that you are taking advantage of any tax reliefs or deductions available.

9. Note the timing of filing

Please note that URA expects you to file your taxes within a specified time period. The official financial year for URA starts on 01 July each year and ends on 31st June the next year. You must file your Income Tax Provisional every new financial year before the 31st of December. Income Tax Final must be filed at least within the first three months of every new financial year ie by the end of September. URA will definitely penalize you with a fine for late filing.

Filing taxes in Uganda is a structured process that, when followed correctly, ensures compliance with the law. By understanding your tax obligations, maintaining proper records, and utilizing the URA’s online tools, you can file your taxes efficiently and avoid any potential issues with the tax authorities. Always remember to file and pay your taxes on time to stay in good standing with the URA.

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