As the financial year rolls on in Uganda, it’s crucial for individuals and businesses to stay informed about the tax deadlines and the potential fines associated with non-compliance. The Uganda Revenue Authority (URA) has established statutory obligations and deadlines for tax filings and payments to ensure that the government can efficiently collect revenue to fund essential services and development projects. Here’s a comprehensive overview of the tax deadlines and the consequences of missing them.
Annual Tax Obligations
Provisional Return – Individual: Individuals in Uganda must file their provisional tax return within the first three months after the start of the year of income. This provides an early estimate of their tax liability for the financial year.
Final Income Tax Return – Individual with Business Income: For individuals with business income, the final income tax return is due within the last six months of the financial year of income.
1st Provisional Income Tax Return – Non-Individual: Non-individual entities, such as companies, are required to submit their first provisional income tax return within the first six months of the financial year of income.
2nd Provisional Income Tax Return – Non-Individual: The second provisional income tax return for non-individual entities is due within the last six months of the financial year of income.
Final Income Tax Return for Non-Individual: Non-individual entities must file their final income tax return within the first six months after the financial year of income.
Income Tax Return for Partnerships: Partnerships in Uganda should submit their income tax return within the first six months after the financial year of income.
Income Tax Return for Presumptive Tax Payer: Presumptive tax payers have to file their income tax return within the first six months after the financial year of income.
Income Tax Return for Individuals with Employment and/or Rental Income: Individuals with employment and/or rental income must file their income tax return within the first six months after the financial year of income.
Monthly Tax Obligations
Withholding Tax Return: Companies and individuals required to withhold tax should submit their withholding tax return by the 15th day of the subsequent month.
Pay As You Earn Return: Employers are required to file the Pay As You Earn (PAYE) return by the 15th day of the subsequent month.
Local Excise Duty Return: Businesses subject to local excise duty must submit their return by the 15th day of the subsequent month.
Gaming Tax Return: For entities in the gaming industry, the gaming tax return is due by the 15th day of the subsequent month.
Monthly VAT Return: Value Added Tax (VAT) registered businesses need to file their monthly VAT return by the 15th day of the subsequent month.
Diplomatic VAT Return: Diplomatic entities registered for VAT must submit their VAT return by the 15th day of the subsequent month.
Return filing from the bulk assessment agent: Bulk assessment agents are required to file returns by the 15th day of the subsequent month.
Weekly Tax Obligations
Gaming Weekly Tax Return: In the gaming sector, the gaming weekly tax return is due on Wednesday of the following week.
Tax Offenses and Penalties in Uganda
Understanding the consequences of non-compliance is as crucial as meeting the tax deadlines. Uganda’s tax laws outline penalties for various offenses:
Failure to apply for registration for Income Tax, Value Added Tax, or Local Excise Duty: Individuals or businesses that deliberately fail to apply for registration may face a fine not exceeding UGX 3,000,000 or imprisonment for up to six years, or both upon conviction.
Failure to pay Income tax (Final or provisional), any penal tax, or tax withheld: If tax payments are not made by the due date, interest is charged at a rate equal to 200,000 or 2% per month, whichever is higher, on the unpaid amount, calculated from the date when the payment was due.
Failure to file Value Added Tax before or on the due date: A penal tax of 200,000 or 2% on the unpaid tax, whichever is higher, is calculated from the due date until the payment date.
Failure to pay Local Service Duty by the due date: An interest of 2%, compounded on the outstanding duty, is imposed.
It’s worth noting that there is a provision for taxpayers to pay the tax due in installments by applying to the URA Debt Management Unit. If you fail to file a self-assessment tax return, URA will assess the taxpayer for the tax due. However, taxpayers have the option to object to this assessment by writing a letter to the Commissioner General, expressing their dissatisfaction with the tax decision in the prescribed format.
Given the complexities of Uganda’s tax regulations and the potential financial implications of non-compliance, seeking professional assistance is advisable. Springs & Tugye Associates, with its expert tax division, is your ultimate partner in navigating the intricate world of taxation in Uganda. We offer advisory, agency, and tax compliance services to ensure that you meet your tax obligations efficiently and minimize the risk of fines and penalties.
In conclusion, understanding and adhering to Uganda’s tax deadlines and regulations are essential for individuals and businesses alike. Compliance not only helps fund critical public services but also avoids the hefty fines and penalties associated with non-compliance. To ensure that you stay on the right side of the tax law and optimize your financial position, consider partnering with Springs & Tugye Associates, your trusted tax advisors in Uganda.