By Kabahweza Kamugisha Allan, Media Management
Starting March 2023, Withholding Tax (WHT) agents and employers will have to accompany their monthly returns with tax identification numbers (TINs) of persons they are withholding tax from.
This is contained in a URA public notice issued on Thursday 23rd February 2023 which states that TINs will be mandatory for all resident persons whose tax is withheld and should be reflected in the withholding tax and pay as you earn (PAYE) returns as of March 2023 moving forward.
In the February 23rd public notice, URA requested all WHT agents and employers to ask their suppliers and employees to avail their TINs in time to facilitate submission of their returns by the due date.
Assistant Commissioner Public and Corporate Affairs, Ibrahim Bbossa has said that according to the tax laws, a person shall state that person’s TIN on any return, notice, communication, or other document furnished, lodged, or used for the purposes of the law. He explained that WHT agents and employers will have to state their suppliers and employees’ TINs in their returns after tax has been withheld.
The declarations of TINs enable suppliers’ benefit from tax credits on supplies made to WHT agents, while employees can ably keep and maintain accurate tax ledgers.
All WHT agents and employers should request their suppliers and employees to avail their TINs in time to facilitate submission of their returns by the due date.
Bbossa encourages suppliers and employees who do not have tax identification numbers to get them using the instant TIN functionality which only requires the national identification number (NIN) and accurate contacts.
The Tax law specifies the persons who are required to withhold tax as well as those upon whom the tax should be imposed, depending on the nature of the transaction. This tax is deducted at source by a withholding agent upon making payment to another person.
A withholding agent is the person making payment and obliged to withhold tax, while the recipient of the payment is a payee.
