Filing Taxes: A Step-by-Step Guide for Refugees in Uganda

A tax is a compulsory monetary charge, levied by an authority of government on persons, entities, transactions or property with an aim of generating government revenue.

On the other hand, a tax return is a legal way of reporting your income, expenses, and other pertinent tax information. A tax return helps you estimate your tax liability and plan your payments accordingly. In Uganda, tax returns are filed annually for an individual with business or companies.

In Uganda, the Uganda Revenue Authority (URA), the country’s tax body. Accordingly, provisional tax returns must be filed between 1st July – 30th December of the financial year, and final returns filed before 30th of June every financial year.

Why file tax returns

For a registered taxpayer, filing timely and accurate returns shows that you are a responsible person.

In Uganda, filing a return is an obligation expected of all registered taxpayers. As a taxpayer, you are required to file timely and accurate returns and pay your due taxes to URA.

For refugees or asylum seekers

The Uganda's Refugees Act, 2006, mentions that a recognized refugee is issued an identity card and is allowed to reside in Uganda.

Because of that, a refugee in possession of an identity card enjoys all the rights as the nationals, as well as responsibilities including paying taxes if he/she qualifies to.

The process

To simplify filing tax returns and save the taxpayers from physically going to URA service centres, an online option was created. Below is a step-by-step process of filing returns

Log onto to the URA website (URA homepage) and go to your account. If you do not have one, select Register and follow the prompts to create an account.
When logged into your account, click on e-Returns. Under Original, Amended, or Others; select the type of return that you wish to file. E.g., income tax provisional
You can now download the template for the return that you want to file, from the list provided under e-Returns. e.g., income tax return form for individual with business income, and select save.
After saving the template, you can fill it at your convenience even when offline (not connected to the internet).
When you are ready, open the template.
Before filling it out, enable macros by following the instructions on the sheet labeled help, on the form you have downloaded.
When you have filled in all the required information, click the VALIDATE button on the last page of the return to validate the document.
If you get any errors, correct them, and save the file, then validate the document again.
If you do not get any errors, you can Upload the file by clicking YES on the pop-up window. You will then get a compressed file that is easy to upload. Please do not rename your upload file.
In case, you had gone offline, you can now get back online and relink to the URA website and log in to submit your filled in template.
When logged in, again go to e-Returns. Under Original, Amended, or Others; select the type of return that you wish to upload. E.g., income tax provisional.
Enter the period for which the return is being filed and click check.
Enter all the details required and upload the return. a. If the form fails online validation, correct the specified errors on the saved template (from which you generated the upload file), save the file, validate and re-generate another upload file. (Refer to steps 7 – 9) b. Try to upload the file again.
After uploading the template, click Submit to submit your return.
An e-Acknowledgement receipt will be generated, and a copy sent to the email address that you will have used to register at the start.

In case you cannot go through with the processes; you can enlist the services of a certified tax agent.

Alternatively, if a taxpayer is unable to file online, URA advises them to go to any of the URA offices or One Stop Centre located in any Municipality or Kampala Capital City Authority division and be assisted to complete the registration process. Move along with the necessary attachments as required.

Who is a tax agent?

In Uganda, a tax agent is an individual, partnership or company approved, licensed and certified by the Tax Agents Registration Committee. A tax agent prepares, certifies and files returns on behalf of a taxpayer.

The tax agent also represents the taxpayer in engagements relating to taxpayer rights, responsibilities and liabilities and correspondences with URA.

Accordingly, a tax agent is required to provide the taxpayer with a signed certificate stating the documents used in preparation of their returns and must certify that all documents are examined and reflect the correct data and transactions for the return period.

It is advised to use the services of a registered tax agent.

Types of taxes

There are several types of taxes for individual and non-individual taxpayers and timelines attached to each type of tax.

Income tax

This is imposed on income from business, employment and/or property. Every taxpayer is required to furnish a return of provisional tax estimate. On or before the last day of the third, sixth, ninth and twelfth months of the year of income in respect of an individual taxpayer’s liability; for a period of three, six, nine or twelve months; and on or before the last day of the sixth and twelfth months of the year of income in respect of a taxpayer’s liability other than an individual; for a period of six or twelve months.

All taxpayers are required to submit final Income tax returns (including rental income returns where applicable) for each year of income not later than the sixth month after the end of the year of income.

Important to note is that no return of income is required from an individual where their income consists exclusively of income derived from a single employer from which tax has been withheld by the employer as required by the law.

A return is also not required for a non-resident individual whose tax obligation has fully been satisfied through the withholding of tax by withholding agents.

A return is also not required from a resident individual whose chargeable income falls in the zero rated threshold of tax.

Value Added Tax (VAT)

VAT is a tax on consumption charged on value added to “taxable” goods and services, at different stages in the chain of distribution and is charged at a rate of 18%.

All VAT registered taxpayers are required to submit Value Added Tax returns (VAT) for each month by the 15th day of the following month.

PAYE (Pay As You Earn)

PAYE is a tax levied on the Gross salary of employees who earn monthly income of above UGX 235,000 by employers and then remitted to URA on behalf of the employees. If you have employees who earn a monthly income above UGX 235000/=, you are required to withhold and remit monthly PAYE by the 15th of the month following one in which tax is withheld.

All PAYE registered taxpayers are required to submit Pay As You Earn (PAYE) tax returns for each month by the 15th day of the following month.

What happens if you do not pay taxes

Failure to pay taxes in Uganda attracts different penalties for different taxes. Generally, the penalty for failure to furnish a tax return by the due date or within a further time allowed by the Commissioner is a fine not exceeding UGX1,000,000 and failure to furnish the return within the time prescribed by court is a fine not exceeding UGX2,000,000 on conviction. However, there are different penalties for different taxes;

Failure to apply for registration for Income Tax, Value Added Tax, or Local Excise Duty attracts a fine not exceeding UGX 3,000,000 or imprisonment not exceeding six years or both on conviction if the failure/act was done deliberately

Failure to pay Income tax (Final or provisional), any penal tax, or tax withheld or required to be withheld on or before the due date attracts an interest at a rate equal to 200,000 or 2% per month whichever is higher, on the amount unpaid calculated from the date on which payment was due until the payment date

Failure to file Value Added Tax before or on the due date will make liable to pay a penal tax of 200,000 or 2% on the unpaid tax, whichever is higher calculated from the due date until the payment date
Failure to pay Local Service Duty by the due date translates to an interest of 2% compounded on the outstanding duty

For any help, visit URA Offices;

URA Headquarters, Plot M193/M194,

Nakawa Industrial Area P.O. Box 7279, Kampala.

Toll Free line 0800117000/0800271000

Email Address. services@ura.go.ug

WhatsApp 0772140000