Uganda - Register for Turnover Tax

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Procedure

• All taxpayers whose gross business income exceed Ug.shs 50 million shillings and and does not exceed Ugsh.150 million per year are registrable and they pay taxes.
• A taxpayer whose gross turnover does not exceed 10 million shillings a year does not pay tax on their income.

Application for registration should be done through the URA online services portal Uganda Revenue Authority

Apply in person:

• Tax payer simply visit one of the Revenue offices fill Turnover tax forms which are used to remit the tax annually.
• A Registered Taxpayer should notify the Tax Authority in Writing.
• Attach all the required documents on the application form.
• Submit the application to the Tax office for processing this will take a day or two and the tax turnover certificate is issued.

Apply online:

1. Go to URA website; www.ura.go.ug, under e-services and select payment registration. Select tax type i.e income tax, Turnover Tax.
2. Insert your TIN and it will auto populate your particulars.
3. Input the amount applicable to you basing on the brackets indicated, select the bank you want to make this payment and register the payment.
4. Print out the bank slip and pay the tax in the bank. You can contact any of the offices for assistance.
   

DE-REGISTRATION:

• A person whose income from business falls below Ugshs.10,000,000/= in a year of income shall apply to the Commissioner for de-registration.
• Where the income from the business of a person exceeds Ugshs.10 million during a year of income,that person shall notify the Commissioner of the change of status.

Note:
NB:For TOT purposes,"person" includes partnerships, individuals and Companies.

• Turn over Tax under the total value of Kshs.50,000,000, is applicable to pay 2% or 10% percent from annual taxable transactions on goods sold or service rendered locally.
• All income from domestic or foreign sources is taxed whether it is obtained as remuneration, profit or gains, from employment, business activities or any activity which brings income to the beneficiary.
• For depreciation allowance, assets are categorized into different classes.

The categories and rates of depreciation are

• Buildings and structures 5%;
• Intangible assets 10%;
• Computers, information systems, software products and data storage equipment 25%; and
• All other business assets including automobiles, buses and minibuses 20%.

Every investor has a tax obligation and is required to obtain a tax payer identify caution number (TIN). An investor who involves in taxable activity has also an obligation to register for Turnover tax which is paid annually. The scope of application of Turnover tax is on:

• Supply of Goods
• Rendition of services
• Persons not registered for VAT

NOTE: A tax payer whose turnover is below FIFTY MILLION SHILLINGS pays tax depending on their location and nature of business.

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Required Documents

1. A certified legible copy of the taxpayers Identity document or Passport document.
2. Proof of identity document/passport
3. Affidavit to justify the absence of the identity/passport together with the temporary identity document/passport.
4. Proof bank statement with the bank stamp that confirms the account holder's name, account number, account type, and branch code;
5. Proof of residential address, e.g municipal account/utility bill of an individula not more than three months old reflecting the name and residential address;
6. TINs of directors, Certificate of Registration or Certificate of Incorporation, Company form 7NB.(in case of Company)

• Please note that your company must already be registered by Uganda Registration Services Bureau (URSB)

Office Locations & Contacts

Uganda Revenue Authority - Head Office,
Physical address: Plot M193/M194,
Nakawa Industrial Area
Kampala, Uganda
P.O. Box 7279,
Kampala, Uganda
Toll Free Number: (256) 800117000
Email:info@ura.go.ug
Website: Link

Eligibility

• All private and government institution.

Fees

• Rate of tax.
• TOT is charged at the rate of 3%. on gross sales per annum.

Validity

• Valid for 1 year.For TOT purposes, tax period means every 3 calendar months commencing Ist January of every year.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• One day but there is no set time for this service.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• The institution must register for Turnover tax, as well as be familiar with the rules relating to the filing of Turnover tax returns and its calculation.The registration to get a Turnover tax file number generally involves a few minutes.
• All Companies in Uganda by law not registered for value-added tax are responsible for Paying Turnover taxes from their profits. Taxes deducted are required to be remitted to the appropriate tax office by the 30th day of the month following the deduction

Required Information

• Name of Taxpayer
• Taxpayer Identification Number
• Business Name or Trade Name of Taxpayer
• Status
• Bank Details
• Name of Bank
• Bank branch
• Account Number
• Type of Employment
• Total Income Chargeable Income Total Tax Payable

Need for the Document

  Please provide the need for the procedure. e.g. Birth Certificate - why do we need to have a birth certificate?

Information which might help

1. Gross turnover exceeds Ugshs50 million but does not exceed shs 75 million ----Shs.937,500 or 1.5% of gross turnover whichever is lower.
2. Gross turnover exceeds Ugshs 75 millionbut does not exceed shs 100 million----Shs.1,312,500 or 1.5% of gross turnover whichever is lower.
3. Gross turnover exceeds Ugshs 100 million but does not exceed shs 125 million----Shs 1,687,500 or 1.5% of gross turnover whichever is lower
4. Gross turnover exceeds Ugshs 125 million but does not exceed shs 150 million----Shs 2,062,500 or 1.5% of gross turnover whichever is lower
5. Turnover Tax was introduced by the Finance Act 2000.
6. Turnover tax means tax payable under Section 37 of the Income Tax Act Cap 340.
7. The tax shall be applicable to any resident person whose turnover from business exceeds shs.50,000,000/= but does not exceed Ugshs. 150million.
8. during any year of income.
9. Turnover Tax is an equalization tax imposed on persons not registered for value-added tax to fulfill their obligations and also to enhance fairness in commercial relations and to complete the coverage of the tax system.
10. Administrative feasibility considerations limit the registration of person; under the value-added tax to those with annual transactions to the total value exceeding Ugsh50,000,000. Rate of turnover tax is 2% on goods sold locally and 10% on others. For further details refer to 'Excise Act (Chap 472). '.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• External Link 1
• External Link 2

Others

More information which might help people.