A BRIEF GUIDE TO TAXES FOR ENTERPRENEURS

Introduction

As an entrepreneur, one of the most confusing areas concerns taxes. This because failure to pay taxes usually attracts a penalty, including imprisonment, but also because there is not enough information and guidance on taxes available.

What is a Tax?

A Tax can be defined as a monetary charge imposed by the government on persons, entities, transactions or property to yield public revenue. In Uganda, the Uganda Revenue Authority collects taxes on behalf of the government.

Examples of taxes in Uganda

There are a number of taxes in Uganda, but the most common taxes for small businesses are;

a) Income tax
b) Stamp duty
c) Pay as you Earn
d) Capital Gains Tax
e) Rental Tax
f) Corporation Tax
g) Import duty
h) Value Added Tax
i) Excise duty
j) Withholding Tax

What is a TIN Number?

When a taxpayer registers with the Uganda Revenue Authority, then such a person is given a TIN number which helps URA identify that taxpayer. Think of the TIN number as your ID card with URA. When carrying out some transactions e.g vehicle purchase, before the car is purchased in your name, then the TIN number will be provided.

How do i get a TIN number?

Registration for a TIN number is free of charge. To get one, a taxpayer simply registers for a TIN number by following this link to the URA website. You can also physically go to the URA offices e.g Nakawa and register for one. You can also contact some agents who can do this for you, at a fee.
 

Any further questions?

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