Return filing is a process where a registered taxpayer periodically declares his or her income to URA indicating how they have transacted during a given period and this will reveal the tax payable for that period.
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.
Returns are categorised into four forms depending on the period in which they are expected to be filed.
First are the provisional Income tax returns which are filed by registered taxpayers at the end of the first six and three months of the of the tax period. The provisional return is an estimate of what an individual’s or company’s financial performance for the tax period will be.
Individuals file their provisional income tax returns within the first three months while non-individuals such as companies and NGOs, file their returns within the first six months of the financial year.
A second provisional return can be filed by the last day of the financial year in case there is a change in estimates made in the first provisional return.
Second are the Final Returns which are filed within six months after the end of the year of income. The third category are the Monthly returns filed by the 15th day of the following month.
Returns filed monthly include VAT, PAYE, Withholding Tax, Local Excise Duty among others while weekly returns are filed by Wednesday of the following week such as the gaming tax returns.
Benefits of timely return filing
The Ugandan tax regime is premised on self-assessment where a taxpayer is expected to declare their expenditures and earnings before an appropriate tax computation is reached. This regime gives the taxpayer a chance to analyse their business from their daily operations.
Taxpayers who file their returns are undoubtedly in charge of their businesses because information used in a return enables one to know if they are operating at a profit or a loss. This also helps the taxpayer to pay the right taxes due for the business and avoid assessments generated by URA.
Compliant businesses and taxpayers often relate better with other players in their fields. Tax compliance is key when a business wishes to engage in bidding for contracts.
Timely filing of returns saves a taxpayer from penalties which arise from late filing or failure to pay their taxes due on time.
Compliant taxpayers have a better working relationship with URA because they file correct returns. This means the taxpayer is free from assessments as a result of not filing returns, enforcement or even litigation.
How to file a return
Visit www.ura.go.ug
- Log into your TIN account with your details and password
- Click on e-returns to select the type of return you wish to file
- Under the column for original, select Tax final
- Download the template for income tax return form
- Save the template on your preferred location on your computer
- Before filling out the document, click on enable content to enable macron
- You will get a pop-up message requesting you not to CUTR or Paste any values in the sheet. Click ok
- After filling in all the required information, validate the form then click yes to get an upload file
- In case there any errors, click on the error sheet and correct them. Save and validate again. It is better not to rename the upload file
- Go back to the home page and log in to your account again
- Under e-services, select tax final
- Enter the period for which the return is being filed and click check
- Enter all the required details, browse the file and upload the return and click submit
- An e-acknowledgement receipt will be generated and sent to the email address you used at registration
Click on the link below for a step by step process https://www.youtube.com/watch?v=071i4Td5CN8
