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TAX AMENDMENTS TO ENABLE BUSINESSES IN UGANDA RECOVER FROM COVID-19

Wednesday, 22nd July 2020
URA Tax Amendments
In line with the budget theme of Stimulating the Economy to safeguard Livelihoods, Jobs, Businesses and Industrial Recovery, Government has put in place several initiatives to enable businesses recover from COVID 19. Government has among other initiatives:
  1. Reduced tax rates for small businesses taxpayers and has in the interim deferred until September 2020, payment of Corporate Income Tax and Presumptive tax for Small, Medium Enterprises (SMEs) due, 1st April to 30th June 2020. This applies to tax complaint businesses with annual turnover of less than UGX 500 million.
  2. Deferred payment of PAYE until September 2020 by sectors from 1st April to 30th June 2020 for tax compliant Ugandan businesses facing hardships.
  3. Waived interest or penalties that will accumulate on the tax amounts above, during this period. 
  4. Waived interest and penalties on tax arrears accumulated before 1st July 2020 to lessen the tax liability of businesses who voluntarily comply with their tax obligations and;
  5. Provided for Tax Deductibility of Donations for the Corona Virus Response.

URA has in the same vein extended filing dates, suspended auctioning of goods during this period, reviewed installment payment and provided several platforms to ease payment of taxes. 

The changes in tax legislation further affirm Government's commitment toward import substitution and strengthening local production.

The booklet on Tax amendments highlights several changes made in several tax laws namely; Income Tax, Value Added Tax Act, Excise Duty Act, Stamp Duty Act and The Tobacco Control (Amendment) Act and also features changes in international taxes at the EAC regional level.

(The booklet on Tax amendments can be downloaded on the link shown on the homepage)

Source: Public Diplomacy Desk, Uganda Embassy, Berlin

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