Edgar Mukasa
Considering the tax amendments effective 1st July 2025 in line with the revenue collection target set by the government for the financial year 2025/26 (UGX 31 trillion), I arranged a 2-day seminar to update organisations on regulatory trends impacting their operations, in addition to recent judicial decisions shaping the tax landscape in Uganda.
The seminar addressed regulatory requirements, common pitfalls from the recent audits carried out by the Uganda Revenue Authority (URA), tax incentives currently provided for within the law, revised applicable rates, impact of double taxation treaties entered between Uganda and other states and key Transfer Pricing considerations.
It sure was a privilege to have John Tinka Katungwesi (Commissioner, Tax Academy) facilitate a session on tax compliance risks focused on by URA in assessing the entities to be selected for compliance audits during the financial year 2025/26, which, among others, include:
– Huge credits on the corresponding URA ledgers
– Variances between income tax and VAT sales declarations
– Non-declaration of Withholding Tax (WHT) on interest payouts
– Variance between exports in ASYCUDA and income tax sales
– Non-declaration of VAT on imported services
– Mismatch between exports in ASYCUDA and declarations in VAT returns
– Non-compliance with EFRIS and Digital Tax Stamps (DTS)
– Variances between staff costs as per PAYE returns filed and income tax
– Filing of NIL or empty returns
– Variances between opening and closing written-down values
Insights on the triggers for tax compliance inquiries from URA came at a critical time as all taxpayers are looking to optimise cash flows by mitigating leakages in the form of penalties and/or interest on back taxes.
This is in addition to the amnesty in place where interest and penalties for all taxes due by 30th June 2024 are to be waived to the extent that principal tax is settled by 30th June 2026.
These insights present a unique opportunity for organisations to proactively manage their affairs by deliberately reviewing the declarations made to URA with the objective of cleaning house before any investigations are initiated.
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