By Kabahweza Kamugisha Allan
Following Uganda Revenue Authority’s directive for employers to include their employees’ Tax Identification Numbers (TINs) when filing Pay as You Earn (PAYE) returns, the Authority has commenced engagements with stakeholders to ensure their compliance.
While attending the 44th annual general meeting of the Federation of Uganda Employers (FUE), URA’s Manager Tax Literacy David Rusoke urged employers to educate their employees noting that the directive will come into effect starting this March.
“Educate and sensitize your employees on the law requiring that their TINs be put in the tax returns, so that those who do not have TINs could get them as early as possible,” he said.
Rusoke added that all PAYE returns should also reflect TINs for contractors who pay 6%. He highlighted the provision for instalment payments as provided for by law and advised the employers to always contact URA whenever they encounter challenges.
“Seek guidance from us whenever you have challenges and please do not ignore emails and messages sent to you. You are our key stakeholders,” Rusoke.
On withholding taxes, Rusoke reminded employers to not deduct 6% on supplies below UGX 1m and that they should have the TINs for persons who make supplies of UGX 5m and above. He further advised them to be mindful to not withhold from persons that are withholding tax exempt.
Employers were also cautioned to avoid false assessments resulting from self-assessment, fines and penalties for late filing of tax returns, and agency notices which could lead to loss of reputation.
Douglas Opio the Executive Director FUE appreciated URA for the partnership and efforts put in place to educate and sensitize taxpayers.