A company is resident in uganda if it is incorporated or formed under ugandan law, has management and control of its affairs exercised in uganda or the majority of its operations are carried out in uganda during the year of income. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. Formation, reconstitution or dissolution of a partnership. The uganda revenue authority administers the tax laws acts on behalf of the ministry of finance, planning and economic development under the following legislation regulating taxes. Unfortunately, very little is known about the revenue mobilization capacity of the tax system. Fighting tax evasion, spurred by tax havens, regulatory weaknesses, and some. Creation of uganda revenue authority in 1991 introduction of vat in july 1996 estab. Tax laws are structured into parts, sections and schedules.
Tax buoyancy, tax elasticity, revenue productivity, tax reform, zimbabwe introduction most developing countries are finding it difficult to raise enough tax revenues to spearhead their developmental aspirations. This alert summarizes the key reforms contained in each bill. Taxation and economic growth in a resourcerich country. In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using nigeria as a case study. Will a nonresident of uganda who, as part of their employment within a group company, is also appointed as a statutory director i. This change in the tax law is likely to affect in the near future many insurance.
Taxation, imposition of compulsory levies on individuals or entities by governments. Based on this, the remuneration to a director who is a member of a board of directors for a company situated in uganda would be subject to tax in uganda. In 1991, the function of administering central government taxes was shifted from the ministry of finance to the uganda revenue authority, a body corporate established by an act of parliament. A number of organizations are engaging government on taxation and revenue generation issues.
An individual is a tax resident if they have a permanent home in uganda, spend at least 183 days in any 12. Income tax in uganda can be a burden, and you need to be sure you are placed in the correct tax brackets. Any property belonging to an organization in respect of which uganda is obliged under any international. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. Law on direct taxes on income no 16 of 2005 as amended law on valueadded tax no. Recovery of tax from person owing money to the taxpayer. Introduction to taxation in uganda download ebook pdf, epub. Pdf the rise and fall of mass taxation in uganda 19002005. This act applies to years of income commencing on or after 1st july, 1997. The laws applicable in uganda are statutory law, common law. International limited, has produced the pkf worldwide tax guide wwtg to. Double taxation treaties in uganda mellemfolkeligt samvirke. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and or foreign aid. A foreign investor looking to conduct business in uganda would be liable to pay tax in uganda and would therefore have an obligation to apply to ura for a certificate of tax.
Our team of experts are at hand to offer tax solutions for all business categories. Ugandas supreme court confirms original jurisdiction of. Data and research on tax including income tax, consumption tax, dispute resolution, tax avoidance, beps, tax havens, fiscal federalism, tax administration, tax treaties and transfer pricing. Issues covered are deductions allowed and not allowed, income tax returns, assessments and tax rates and appeals and objections against assessment. Like most developing countries, the government of uganda has embarked on numerous tax reforms over the last several decades. The chamber of deputies, in its session of march 29, 2005. You can find statutes, rules and other legal information about general tax, property tax and child support in our newly redesigned library. Impact of etaxation on nigerias revenue and economic growth. Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm growth rates. The new site provides streamlined navigation and advanced search capabilities. Using an umbrella company for income tax in uganda. Therefore, the uganda revenue authority act cap 196 was put in place to provide the administrative framework in which taxes under various acts are collected. There are statutes and laws for imposing the different taxes also enacted by acts of. The fiscal year in uganda runs from 1 july to 30 june.
One of the intentions was to lower the dependence on trade taxes, which reduced incentives for production, and to rely instead on indirect taxes on goods and services. To provide the learner with basic knowledge of taxation in uganda covering all aspects of. Officers and staff of the uganda revenue authority. Revenue law and taxation llb questions and answers page 1 b. The challenges of tax collection in developing economies. As a description of reality, this is patently untrue. This publication constitutes only a brief guide and is not intended to be a comprehensive summary of the tax law. Review and analysis of national and local government performance, opportunities and challenges with other revenue authorities in the region using the regional authorities digital data exchange system radex. Contractors in uganda are faced with masses of paperwork and numerous wasted hours filing a tax. We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. It pays for schools and teachers, health centers and health care workers. It explores the chargeable income, tax rate, allowable deductions and non allowable deductions among other aspects of corporation tax. Tax system the ministry of finance and national planning is responsible for the formulation of tax policy, in zambia and the implementing agency is the zambia revenue authority zra.
Click download or read online button to get introduction to taxation in uganda book now. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. This handbook, has been revised to simplify the laws which govern taxation, provide information and serve as reference material to our stakeholders. Commissioner general means the commissioner general of the uganda revenue authority. Ugandas supreme court confirms original jurisdiction of tax. Ulii is a member of the global free access to law movement and of the african lii. An act to consolidate and amend the law relating to income tax and for other connected purposes.
Taxation is the primary source of income for a state. Upon registration, the person is issued a certificate of tax registration. Income tax amendment act, 2017 uganda legal information. Doc the law of taxation of companies income in uganda. Income tax management act, which laid down the basic legal provisions found in the current income. Vat has become the workhorse of the revenue system in uganda because direct taxation continues to be relatively inefficient kayaga, 2007. Mobilising domestic resources and broadening the tax base to secure steady revenue streams for development financing and to diversify the revenue sources, especially in a context of tariff liberalisation that impacts strongly on tax revenue. This paper uses time series data for uganda during 19702000 to analyse the. In preparation of that, we present in the following some principles. Income tax act 1997 uganda legal information institute.
Domestic tax laws of uganda uganda revenue authority. However, ugandas vat has become clearly less efficient as a revenue producer. The course is about taxation particularly a brief introduction on the nature of taxes levied in uganda. We provide our analysis of the new regulations as below. Given that uganda was a british colony, the english legal system and law are predominant in uganda. This data also indicates countries with higher gdp tend to have higher tax to gdp ratios, demonstrating that higher income is associated with more than proportionately higher tax revenue. Any person, other than an official of the uganda revenue authority, who expressly relies on this hand book in any legal proceedings without reference to the principal laws, does so at his or her own risk, and the uganda revenue authority or the government of uganda cannot be held responsible for any misrepresentations arising out of its use. For tax purposes, a corporation is a separate 1 from itstaxpayer shareholders, meaning that the corporate entity is subject to taxation on corporatelevel events. Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm. Tables, charts, practical examples and question and answer sections are included. Domestic tax laws uganda i while making reference to this compendium, the following adaptations and general principles should be noted.
A key reform promoted by the imf and world bank was the restructuring of uganda s taxation regime. Companies must file a return of income each year by 31 december following the end of the tax year. A different accounting period referred to as substituted year can be opted for by seeking permission from the revenue authorities. The value added tax regulations, 2017 timely update. Other sources of government revenue fines, licences, lotteries, rates, compulsory saving schemes, government securities local service tax references 1. This study examined the impact of etaxation on nigerias revenue and economic growth.
Jan 01, 2001 this book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda. Although great care has been taken to ensure that it reflects the correct wording and numbering of the income tax act, cap. It documents both british and east african judicial decisions which govern revenue law. The challenges of tax collection in developing economies with special reference to india by pramod kumar rai b. Introduction to taxation government plays an important role in most modern economies. This hand book titled domestic tax laws is primarily intended for internal use by officers and staff of the uganda revenue authority.
Double taxation treaties in uganda impact and policy implications 9 introduction uganda is a signatory to ten dtts, having entered into agreements with developing countries like zambia, transition countries like mauritius and india, and developed countries such as the netherlands and the united kingdom. The first edition was developed to guide our stakeholders in in complying with tax laws and procedures for central government taxes. The income tax act of 1997 part xv also provides the legal basis for various. Uganda, all the bills will become law on 1 july 2018. This should be borne in mind when we undertake research in a more adequate and just taxation system as well for our three countries. Uganda budget highlights and quick tax guide 2015 diving. Findings on revenue performance showed that the business are not able to generate revenues as they conducts their normal operations, poor record keeping makes.
It considers taxation on private and commercial earnings, companies, partnerships and trusts. The author found tax revenue as a percentage of gdp varying greatly around a global average of 19%. Jan 01, 2006 revenue law in uganda bakibinga, david j. This hand book titled domestic tax laws is primarily intended for internal use by. Extent to which the income is distributed to participants in the collective investment scheme. Access both online and pdf versions of all ey global tax.
This guide is prepared as a general overview of rwandan tax legislation, updated as at 1 january 2015. Finally, it considers the relationship between taxation and investment, the principle and practice of tax avoidance, and the statutory provisions for tax. On 10 july 2017, the supreme court of the republic of uganda ruled that all tax disputes must first be filed with the tax appeals tribunal tat and only brought before the high court on appeal from the tats ruling. In 1952, the ordinances were replaced by the east african.
This site is like a library, use search box in the widget to get ebook that you want. Uganda, like many subsaharan african countries faces difficulty in raising tax revenue for public purposes. Tax briefly july 2017 the value added tax regulations, 2017 timely update. Revenue law and taxation i makerere university courses. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. The uganda revenue authority administers the tax laws acts on behalf of the ministry of finance, planning and economic. Most economic analysis of taxation presumes that tax liability can be ascertained and collected costlessly. By and large, the participation of csos and nsas in taxation debate is improving. Double taxation treaties in uganda impact and policy implications 7 tax provides the much needed revenue for governments to fund public services for its citizens. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. This paper relates to the taxation regime in uganda. This study seeks to evaluate the productivity of the tax system in zimbabwe through the application of the concepts of tax buoyancy and tax elasticity. For instance, seatini is coordinating the tax justice alliance which is a cso. The eac was reestablished in 1999 by tanzania, kenya and uganda.
Zambiainvest explains the fiscal framework in place in zambia, from corporate tax and income tax, capital gain tax, transfer pricing and thin capitalisation rules, double tax treaties in place and other taxes in zambia. The legislative framework relating to the regulation and administration of the taxation is provided for in the income tax act 1966, as amended. Taxation in uganda at grant thornton, we appreciate the unique nature of tax law and the fundamental principles that underlie its interpretation and application. Law college, india, 2002 a thesis submitted to the graduate faculty of the university of georgia in partial fulfillment of the requirements for the degree master of law athens, georgia 2004. Income tax act ita cap 340, the income of a savings and cooperative society is. Value added tax act 1996 uganda legal information institute. In its landmark decision in the case of uganda revenue authority vs rabbo enterprises uganda. Section 11 of the internal revenue code code lists the progressive rates of tax on corporations. A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer an individual or legal entity by a governmental organization in order to fund various public expenditures. In order to provide for these program and services, the government needs revenues. Tax revenue is the income that is gained by governments through taxation. It also covers the tax administration system in uganda.
Aug 01, 20 2 revenue law and taxation questions and answers 1. A guide on tax incentivesexemptions available to investors in uganda income tax exemptions who qualifies conditions for granting exemption collective investment scheme must be licensed to operate as a collective investment scheme. Income tax act cap 340 laws of uganda an act to consolidate and amend the law relating to income tax and for other connected purposes. Vat is incomplete in one aspect or another, leading to less revenue being collected. However, customary law is in effect only when it does not conflict with statutory law. This book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda. Some changes may arise when the finance bill 2015 and subsequently the finance act 2015 are published. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. If the rate of tax calculated above exceeds 45%, then the rate of tax shall be 45% and, if the rate of tax calculated above is less than 25%, then the rate of tax shall be 25%. The reprint consolidates the income tax act, cap 340, the value added tax act, cap 349 and statutory instruments made. In its landmark decision in the case of uganda revenue authority vs rabbo enterprises uganda limited. Collection of tax from persons leaving uganda permanently.
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