Uganda - Register for Withholding Tax

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Procedure

Withholding tax is a form of income tax. This tax is deducted at source by one person upon effecting payment to another person. The person making payment is obliged to withhold tax and is referred to as a withholding agent and the person receiving payments from which tax is required to be withheld is the payee. The law stipulates the persons who are required to withhold the tax and the persons from whom the tax is withheld. This depends on the nature and the circumstances of the transaction.

HOW TO APPLY

1. The withholding agent is required by the Income Tax Act to pay to URA the tax withheld (or that should have been withheld), within 15 days after the end of the month in which the payment was made.
2. In the case of a person about to leave Uganda, the tax should be withheld and paid before the payee leaves.
3. The agent is further required to maintain and avail for inspection by URA, records of all payments to the payee(s) and the corresponding tax withheld for five years after the end of the year of income to which such records relate.
4. Upon receiving the payment of tax, URA should issue, to the payee a Tax Credit Certificate, setting out the tax withheld. The withholding agent is required to obtain from URA and deliver the tax credit certificate to the payee.

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Required Documents

• Completed and filed withholding tax registration form
• Tax Identification Number (TIN)
• Identification documents

Office Locations & Contacts

Uganda Revenue Authority - Head Office,
Physical address: Plot M193/M194,
Nakawa Industrial Area
Kampala, Uganda
P.O. Box 7279,
Kampala, Uganda
Toll Free Number: (256) 800117000
Email:[email protected]
Website: Link

Eligibility

• Government of Uganda.
• A government institution.
• A local authority.
• Any company controlled by the Government of Uganda, or
• A designated person in notice by Ministry of Finance.
• Any company in which the Government of Uganda has interest

Paying an amount or amounts exceeding one million shillings, in aggregate, to a person in Uganda for supply of goods or services

Fees

• free of charge

Validity

3 to 30 working days

Documents to Use

withholding tax Form
NOTE : Scroll down and locate the application form Withholding Tax Return Form DT-2006

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

2 to 5 working days

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Every person who imports goods into Uganda is liable to pay withholding tax at the time of importation on the Customs Value of the good at 6%. A resident person who pays management or professional fees to a resident person is required to withhold tax at a rate of 6 percent of the gross amount of the payment.

Required Information

1. Name
2. Address
3. Marital status
4. Date/Country/place of birth
5. Sources of income
6. Type of business activity
7. Tax agent
8. Referee

Need for the Document

• Withholding tax is a form of income tax deducted at source of income by one person upon effecting a payment to another.

Information which might help

Withholding tax should be considered when making the following payments:

• Employment income (PAYE)
• Goods and Services
• Imports Professionals fees
• Interest
• Dividends
• Rent
• Natural resource payments
• Royalty
• Management charge
• Ugandan-source services contract
• 10% should be withheld by Resident persons who purchase assets from non-resident persons

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Uganda revenue authority
With holding tax

Others

FAILURE TO WITHHOLD AND/OR REMIT THE TAX (SEC. 123 & 124 ITA)
A withholding agent who fails to withhold tax is personally liable to pay to the Commissioner the amount of tax which has not been withheld and/or remitted to URA. The agent, however, is entitled to recover the amount from the payee thereafter.

PRIORITY OF TAX WITHHELD (SEC. 127 ITA)
Like any other Government tax, the tax withheld is held by a withholding agent in trust for the Government of Uganda. It is therefore not subject to attachment in respect of a personal debt or liability of the agent and it does not form part of the estate of the agent in event of liquidation or bankruptcy and the Commissioner shall have a first claim before any distribution of property is made.