TAXPAYER REGISTRATION STARTER PACK Vol.1 Issue 1 FY 2019/2020 Dear taxpayer, Thank you for registering with URA. We promise you a great experience as you embark on this journey of fulfilling your tax obligations. Our Vision To be the centre of excellence and innovation in revenue administration Our Mission We provide an environment that delivers a delightful experience in revenue services and business facilitation Our Core Values Agility | Integrity | Collaboration |Excellence Client Value Proposition We promise excellent revenue services everywhere, all the time at the lowest cost possible. Log into a portal account Now that you have registered for taxes and obtained a TIN, you need to log into your account on the URA portal using the following steps: 1. Go to the URA web portal at https://ura.go.ug 2. On the top right hand corner, click “Login” 3. Input your Login ID which is your TIN 4. For first time login, check your email address (declared during the TIN registration) for the default password and use it to login 5. Change your password and submit 6. Go back to the home page and log in using your new password Why should you have a URA portal account? • Aids confidential communication with URA (Don’t share your password) • Instant notification of any transaction made using your TIN • Return filing • Following up on any payments made • Objections and appeals submission • Amendment of your TIN particulars/profile • Motor vehicle transfer • Motor vehicle log book printing • Appointment of clearing agents among others Rights and obligations Rights as a taxpayers Obligations as a taxpayer Right to equity and fair Ensure that you voluntarily register treatment before the law. with Uganda Revenue Authority as a taxpayer. Tax laws and procedures shall File correct tax returns, customs be applied consistently to you. entries or any forms relating to taxes and other revenue. All your tax affairs shall be Pay the correct tax at the right handled with impartiality. time and place as required by the relevant laws. You and your agent(s) shall be Be honest when dealing with URA. presumed honest until proven otherwise. Your tax affairs shall be kept In handling your tax matters, you secret and tax information in and or your appointed agent(s) our possession shall be used in shall be expected to deal and accordance with the law. cooperate only with the Authority’s authorized staff. You and your authorized Quote your Tax Identification agent(s) shall be provided Number (TIN) for all dealings with with clear, precise and timely URA. information. You shall always pay the correct Do not indulge in any form of tax tax. evasion and other illegal practices You will receive courteous and When you are importing or professional services at all times. exporting cargo employ services of a licensed customs agent to complete Customs entries and related clearance formalities. You will receive timely, clear Make full disclosure of information and accurate responses to your and correct declaration of all enquiries, complaints/ requests. transactions at all times. You will be availed with reasons Let URA know if you need an for decisions taken. interpreter requirements and regulations. You shall be sensitized about Beware of and comply with your tax obligations. customs quarantine, wildlife, currency and passenger concession. Your tax objections shall be When you are travelling ensure that attended to in accordance with you have accurately completed the relevant laws & procedures. all the necessary forms before you reach the arrival/departure processing point. You shall be facilitated to Declare your goods on arrival and exercise your right (s) of appeal have them ready for inspection. both within the organization and to an independent tax tribunal in accordance with the law. You shall be given prior notice Treat URA staff fairly and with whenever your premise(s) courtesy. are to be subjected to routine inspection or if an audit is to be conducted. Your tax account shall be Comply with all tax obligations. promptly updated for the tax paid. We shall maintain an updated database of your tax records. Where a tax refund is due to you, we shall process it within the prescribed time limits under the laws subject to budget refund limits. We shall process your tax returns, entries and other documents relating to your tax affairs as stipulated under the relevant laws. Return filing A return in simple terms is a declaration a taxpayer periodically makes to URA indicating how the taxpayer has transacted during that period and any tax payable for that period. Returns broadly include: business information return and self- assessment returns. A return should be filed by the due dates as indicated below Tax type Provisional return Final return due date due date Individual income tax The last day of the The last day of 3rd month after the 6th month Trust income tax the start of year of after the end of Presumptive/small business income. year of income. individual taxpayers Partnership income tax The last day of the 6th month after Corporate income tax the start of year of Presumptive/small business income. non individual taxpayers Withholding tax - By the 15th day of the following PAYE - month. Local Excise Duty (Goods/ - services) Please note • Filing of a return must be followed up with payment of the tax payable • Late filing of a return leads to a penalty • Payment of tax is due on the due date of the return • Late payment of the tax payable leads to accumulation of interest Some of the penalties for contravening the tax law(s) A taxpayer who fails to meet their obligations commits an offence and is subjected to penal tax and interest as listed below: Tax type/ Offence Penalty charge Income tax Failure to apply for Double the amount of tax registration payable during the period until the person files an application for registration or 50 currency points (Ugx 1,000,000). Failure to furnish a The greater of: return by the due date • 2% of the tax payable before subtracting any credit allowed to the taxpayer or • 10 currency points (200,000) per month Failure to maintain Double the amount of tax proper records. payable for the period Failure to Interest at a rate equal to 2% per • Pay any tax (final month on the amount unpaid or provisional); calculated from the date on • Pay any penal tax which payment was due until • Pay tax withheld date payment is made. or required to be withheld on or before the due date VAT Failure to apply for Double the amount of tax registration. payable during the period, commencing with the last day of application until either the person applies or Commissioner General registers that person. Failure to file a return The greater of: within 15 days after • Two hundred thousand the end of the month. shillings or; • An interest charge of 2% compounded for the period the return is outstanding Failure to pay tax Penal tax on unpaid tax at a rate before or on the due of 2%. date. Failure to maintain Double the amount of tax proper records in a payable by the person for the tax period (calendar tax period. month). Excise duty Failure to apply for a Penalty equal to the amount of license. duty payable during the period commencing the last day of the application period until the person files an application Failure to furnish The greater of: a return within the • 200,000 or specified time. • an interest charge of 2% for the period the return is outstanding Failure to pay tax. Interest of 2% compounded on outstanding duty. Failure to maintain The greater of: proper records in a • Penalty equal to the tax period (month). amount of duty payable by the person for that period or • 10 currency (200,000) points per filing period Tax stamp Failure to affix a tax The greater of: stamp. • Double the amount of tax due on goods or • 50 million shillings Printing over or The greater of: defacing a tax stamp. • Double the amount of tax due on goods or • 20 million shillings Possession of The greater of: unstamped goods. • Double the amount of tax due on goods or • 50 million shillings Attempting to The greater of: acquire or acquires • Double the amount of tax or sells a tax stamp due on goods or without authority of • 10 million shillings the Commissioner General. Failure to provide 50 million shillings. information upon request by the Commissioner. Making false Double the amount of the or misleading excess. statements. Assessment When a taxpayer fails to file a self-assessed tax return as required by the law, URA will assess that taxpayer. Under the law are several assessments namely: SN Type of Details assessment 1. Default URA may assess a taxpayer where the assessment taxpayer fails to file a self-assessment return. This happens in case of assessed losses, excess input tax credit (VAT) or if there is any tax payable. 2. Advance URA may assess a taxpayer where there assessment is a risk that the taxpayer may delay, obstruct, prevent or render ineffective payment, or collection of tax that has not yet become due. 3. Additional URA may make an assessment amending assessment a tax assessment for a tax period. It may be made • At any time if fraud or any gross or wilful neglect has been committed by or on behalf of the taxpayer • If new information has been discovered in relation to tax payable by the taxpayer for a tax period Objections and appeals Issue Domestic taxes Timeline Objection • A taxpayer dissatisfied Within 45 days after with a tax decision e.