Taxpayers to be exempted from Withholding Tax
INDIVIDUALS and companies who pay taxes on time will be exempt from Withholding Tax by July
By Peter Kaujju
INDIVIDUALS and companies who pay taxes on time will be exempt from Withholding Tax by July.
“Section 119 (5) (f) (ii) of the Income Tax Act (Chapter 340) provides for exemption from Withholding Tax for compliant taxpayers.
URA will publicise the list of the compliant taxpayers who are exempt from Withholding Tax,†Jacqueline Kobusingye, the commissioner for domestic taxes at the Uganda Revenue Authority (URA), said.
Kobusingye said the move is intended to improve services.
Withholding Tax is paid in advance directly to URA. However, if it is paid in excess, it can be refunded. The 6% tax is paid by suppliers of goods and services to the Government and private institutions.
To be considered, the taxpayer must have filled the provisional, final/self assessment returns for the company and individuals plus monthly Pay As You Earn and Value Added Tax returns by their due dates for the past three years.
The taxpayer must also have submitted all the directors’ returns, fully settled all domestic taxes by the due dates, fully complied with the obligations to withhold tax under the act and paid all customs dues to date.
Only taxpayers who will have complied with the requirements by May 20 can be considered.
INDIVIDUALS and companies who pay taxes on time will be exempt from Withholding Tax by July.
“Section 119 (5) (f) (ii) of the Income Tax Act (Chapter 340) provides for exemption from Withholding Tax for compliant taxpayers.
URA will publicise the list of the compliant taxpayers who are exempt from Withholding Tax,†Jacqueline Kobusingye, the commissioner for domestic taxes at the Uganda Revenue Authority (URA), said.
Kobusingye said the move is intended to improve services.
Withholding Tax is paid in advance directly to URA. However, if it is paid in excess, it can be refunded. The 6% tax is paid by suppliers of goods and services to the Government and private institutions.
To be considered, the taxpayer must have filled the provisional, final/self assessment returns for the company and individuals plus monthly Pay As You Earn and Value Added Tax returns by their due dates for the past three years.
The taxpayer must also have submitted all the directors’ returns, fully settled all domestic taxes by the due dates, fully complied with the obligations to withhold tax under the act and paid all customs dues to date.
Only taxpayers who will have complied with the requirements by May 20 can be considered.