Waniko Consult

13/09/2022

13/09/2022

Tonny Mawejje () / Twitter

Tonny Mawejje () / Twitter

Former Professional and National Team Footballer. Football is my passion

23/05/2021

23/05/2021

02/06/2020

NSSF lsoes tax dispute, ordered to pay Ugx 42 billion to URA

The Tax Appeals Tribunal ruled that the National Social Security Fund (NSSF) is liable to pay tax to URA amounting to Ugx 42,718,583,006/-, concluding the tax dispute between the two entities in the favour of the tax collector.

NSSF receives contributions from its members and pays out benefits as required under the NSSF Act. In 2013, URA carried out an audit against NSSF which revealed that NSSF claimed as an allowable deduction, interest paid in respect of contributions made by its members.

URA disallowed the said deduction and issued an assessment against NSSF for income Tax amounting to UGX. 42,196,249,077 (Forty-Two Billion, One Hundred Ninety-Six Million, Two Hundred Forty-Nine Thousand, Seventy-Seven Shillings).

NSSF objected to the said assessment on grounds that it was entitled to deduct such interest under S. 25(1) of the Income Tax Act.

URA made an objection decision maintaining its position that NSSF was not entitled to make the said deduction. The matter went before the Tax Appeals Tribunal (TAT).

TAT ruled that;

i) The contributions made by the members to NSSF do not constitute a debt obligation within the meaning of Sections 25(1) and (2) s of the Income Tax Act.

ii) The amount referred to as interest under S.23 of the NSSF Act does not qualify as interest for the purposes of Sections 25(1) and 2(kk) of the Income Tax Act.

iii) The interest paid by NSSF was not incurred in the production of income included in the gross income.
The Tribunal held the Applicant is liable to pay the Principal tax of UGX. 30,521,703,065. (Thirty Billion Five Hundred Twenty-One Million, Seven Hundred Three Thousand, Sixty-Five Shillings) and penal interest of UGX. 12,196,879,941. (Twelve Billion, One Hundred Ninety-Six Million, Eight Hundred Seventy-Nine Thousand, Nine Hundred Forty-One Shillings.

14/11/2019

31/10/2019

10/10/2019

19/09/2019

TAXATION OF FARMING INCOME:
Farming income refers to business income derived from carrying on farming operations. In arriving at chargeable farming income, total farming income of the taxpayer for a year of income less any deductions allowed under the income Tax Act (sec.22) for the year which relate to the production of farming income.
Special allowances that can be claimed against farming income under sec.35 of the Income Tax Act include:
• Expenditure on farm works is included in a pool for class 4 assets under sec.27 in the year of income in which the expenditure is incurred and depreciated at 20% per annum. Farm works includes labor quarters and other immovable buildings necessary for the proper operation of the farm, fences, dips, drains, water and electricity supply works, windbreaks, and other works necessary for farming operations but they exclude farm houses (e.g. a private dwelling) and depreciable assets. In other words, the whole cost of farm cottages or houses occupied by farm employees qualify to be included in class IV for depreciation purposes;
• Capital expenditure incurred on draining (i.e. land reclamation) or clearing the land forms part of the cost of horticultural plant. Note that the purchase of existing land and/or simply keeping it in good condition (e.g. fertilization) does not form part of the cost of horticultural plant. The deduction allowed on the acquisition or establishment of horticultural plant or the construction of a greenhouse is 20% of the expenditure incurred in the first year of income and then in the following four years of income in which the plant or green house is used (or made available for use) in the business of horticulture carried on by the person. In effect, the horticulture plant or greenhouse is claimed over five years.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction (against farming income) of the taxpayer in the following year of income. In effect the assessed farming loss of a non-individual taxpayer is offset against income of the taxpayer from other business sources.
Horticulture includes propagation or cultivation of fungi, seeds, bulbs, spores or similar things or propagation/cultivation in environments other than soil, whether natural or artificial.
NOTE.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction against farming income of the taxpayer in the following year of income (sec 39). In effect the assessed farming loss of a non-individual taxpayer may offset against income of the taxpayer from other business sources.

01/08/2019

KEY DEFINITIONS
Objection
An Objection is a communication
in writing from a taxpayer to the
Commissioner/Commissioner
General expressing dissatisfaction
with an assessment raised on him
or her.
Objection Decision
This is a decision made by the
Commissioner / Commissioner
General of Uganda Revenue
Authority to allow the objection
made by a taxpayer either in
whole or in part and amend the
assessment accordingly, or disallow
the objection.

24/07/2019

05/07/2019

17/06/2019

14/06/2019

ON HOW PASSWORD FOR A TIN SHOULD BE COMPOSED OF

1 Minimum length of Password should be 8 characters and Maximum length should be 50 characters.
2 The Password should contain atleast one Numeric value (0-9).
3 The Password should contain atleast one Alphabet of (A-Z) in uppercase.
4 The Password should contain atleast one Alphabet of (a-z) in lowercase.
5 The Password should contain atleast one Special character out of the follwoing values : ! @ # $ * _ - ~ =
6 The Password should not conatin any of the following values: \n + [ ] { } \' % ( ) ^ & : / >< . ,`|

08/06/2019

Objection
An Objection is a communication in writing from a taxpayer to
the Commissioner/Commissioner General expressing dissatisfaction with an assessment raised on him or her.
Objection Decision
This is a decision made by the Commissioner / Commissioner General of Uganda Revenue Authority to allow the objection made by a taxpayer either in whole or in part and amend the assessment accordingly, or disallow the objection.
Appeal to High Court or Tax Tribunal
A taxpayer dissatisfied with the decision of the Commissioner/ Commissioner General may, appeal the decision to the High Court; or apply for review of the decision to the tax appeal tribunal. The Objections and Appeals procedure is a procedure for challenging an assessment by the Commissioner / Commissioner General and is provided for

24/05/2019

22/05/2019

TAXATION OF FARMING INCOME:
Farming income refers to business income derived from carrying on farming operations. In arriving at chargeable farming income, total farming income of the taxpayer for a year of income less any deductions allowed under the income Tax Act (sec.22) for the year which relate to the production of farming income.
Special allowances that can be claimed against farming income under sec.35 of the Income Tax Act include:
• Expenditure on farm works is included in a pool for class 4 assets under sec.27 in the year of income in which the expenditure is incurred and depreciated at 20% per annum. Farm works includes labor quarters and other immovable buildings necessary for the proper operation of the farm, fences, dips, drains, water and electricity supply works, windbreaks, and other works necessary for farming operations but they exclude farm houses (e.g. a private dwelling) and depreciable assets. In other words, the whole cost of farm cottages or houses occupied by farm employees qualify to be included in class IV for depreciation purposes;
• Capital expenditure incurred on draining (i.e. land reclamation) or clearing the land forms part of the cost of horticultural plant. Note that the purchase of existing land and/or simply keeping it in good condition (e.g. fertilization) does not form part of the cost of horticultural plant. The deduction allowed on the acquisition or establishment of horticultural plant or the construction of a greenhouse is 20% of the expenditure incurred in the first year of income and then in the following four years of income in which the plant or green house is used (or made available for use) in the business of horticulture carried on by the person. In effect, the horticulture plant or greenhouse is claimed over five years.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction (against farming income) of the taxpayer in the following year of income. In effect the assessed farming loss of a non-individual taxpayer is offset against income of the taxpayer from other business sources.
Horticulture includes propagation or cultivation of fungi, seeds, bulbs, spores or similar things or propagation/cultivation in environments other than soil, whether natural or artificial.
NOTE.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction against farming income of the taxpayer in the following year of income (sec 39). In effect the assessed farming loss of a non-individual taxpayer may offset against income of the taxpayer from other business sources.

04/01/2019

Waniko Consult

Waniko Consult

General Requirements for VAT Registration

(i) The applicant must have a fixed place of abode or business.

(ii) The applicant should be able to keep proper books of accounts.

(iii) The applicant should be able to submit regular tax returns.

(iv) The applicant should be a fit and a proper person. In the opinion of the Commissioner General.

20/12/2018

15/11/2018

Waniko Consult

Waniko Consult

TAXATION OF FARMING INCOME:
Farming income refers to business income derived from carrying on farming operations. In arriving at chargeable farming income, total farming income of the taxpayer for a year of income less any deductions allowed under the income Tax Act (sec.22) for the year which relate to the production of farming income.
Special allowances that can be claimed against farming income under sec.35 of the Income Tax Act include:
• Expenditure on farm works is included in a pool for class 4 assets under sec.27 in the year of income in which the expenditure is incurred and depreciated at 20% per annum. Farm works includes labor quarters and other immovable buildings necessary for the proper operation of the farm, fences, dips, drains, water and electricity supply works, windbreaks, and other works necessary for farming operations but they exclude farm houses (e.g. a private dwelling) and depreciable assets. In other words, the whole cost of farm cottages or houses occupied by farm employees qualify to be included in class IV for depreciation purposes;
• Capital expenditure incurred on draining (i.e. land reclamation) or clearing the land forms part of the cost of horticultural plant. Note that the purchase of existing land and/or simply keeping it in good condition (e.g. fertilization) does not form part of the cost of horticultural plant. The deduction allowed on the acquisition or establishment of horticultural plant or the construction of a greenhouse is 20% of the expenditure incurred in the first year of income and then in the following four years of income in which the plant or green house is used (or made available for use) in the business of horticulture carried on by the person. In effect, the horticulture plant or greenhouse is claimed over five years.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction (against farming income) of the taxpayer in the following year of income. In effect the assessed farming loss of a non-individual taxpayer is offset against income of the taxpayer from other business sources.
Horticulture includes propagation or cultivation of fungi, seeds, bulbs, spores or similar things or propagation/cultivation in environments other than soil, whether natural or artificial.
NOTE.
The assessed farming loss of a taxpayer who is an individual may not be offset against any other income of the taxpayer for the year of income but shall be carried forward as a deduction against farming income of the taxpayer in the following year of income (sec 39). In effect the assessed farming loss of a non-individual taxpayer may offset against income of the taxpayer from other business sources.

28/09/2018

Waniko Consult

Waniko Consult

PENAL TAX FOR FAILURE TO FURNISH INCOME TAX RETURN IN TIME:
According to sec 48 of TPC a person who fails to furnish a tax return by the due date, or with in a further time given by the commissioner under this act is liable to pay a penal tax equal to 2% of the tax payable under the return before subtracting any credit allowed to the taxpayer on his or her tax return or Ten currency points per month whichever is higher for the period of the return is outstanding.
Note:
A Tax return under this Act means:
Income Tax Return AND
Provision Tax Return:

27/02/2018

Ignorance about rental tax is believed to be hampering Uganda Revenue Authority’s plan to enhance revenue mobilisation.

Some landlords have since 2004 been reluctant to file their returns.

Allen Kyomugisha, the supervisor rental tax at URA told The Nile Post that enhancing revenue mobilisation in real estate is still a challenge yet it is among the fastest growing sectors in Uganda.

The real estate sector is among the most profitable business ventures in Uganda whose contribution is seen with the capability of adding revenues to the government coffers.

But statistics from Uganda revenue Authority shows that in last financial year 2016/2017, only Shs 71 billion was collected from the real estate sector.

“In this running financial year 2017/208, the tax body has only collected Shs 48 billion from rental tax,” Kyomugisha said.

By definition rental income is the total amount of rent derived by a person for the year of income from the lease of immovable property like land rented for a washing bay, customs bond, selling sand or gravel and buildings such as a house, flat, apartments and offices.

Kyomugisha said the country has many rentals but landlords still have to be reminded, and in most cases wait for
URA to force them to do their obligations.

“It’s the taxpayer’s obligation to maintain and declare accurate and complete records of all their transactions to the URA on time to avoid incurring interests and penalties,” he said.

Despite the ignorance exhibited by most landlords on their tax obligation; Joan Mugenzi a landlady in Kampala took it upon herself to approach URA.
“When I started building my rentals the first thing that came into my mind was visiting URA to get more information regarding rental income,” Mugenzi said.

She believes that no one can avoid taxes, advising URA to look for the landlords other than waiting for them to file returns.

14/02/2018

PENAL TAX FOR FAILURE TO FURNISH INCOME TAX RETURN IN TIME:
According to sec 48 of TPC a person who fails to furnish a tax return by the due date, or with in a further time given by the commissioner under this act is liable to pay a penal tax equal to 2% of the tax payable under the return before subtracting any credit allowed to the taxpayer on his or her tax return or Ten currency points per month whichever is higher for the period of the return is outstanding.
Note:
A Tax return under this Act means:
Income Tax Return AND
Provision Tax Return:

20/01/2018

URA SLAPS TAX ON SCHOLASTIC MATERIALS



KAMPALA. Paper manufacturers have protested a move by Uganda Revenue Authority (URA) to slap 18 per cent Value Added Tax (VAT) on scholastic materials, saying the move will further escalate the cost of education.
Mr William Okello, the Uganda Manufacturers Association paper section chairman, told Daily Monitor that URA officials have directed them to start remitting 18 per cent VAT on scholastic materials with exception of those supplied directly to educational institutions and public libraries starting next month.
“We would like URA not to impose VAT on scholastic materials. If you say we can be VAT exempted only if we supply educational institutions and libraries directly, that is wrong.
Even if we supplied them (educational institutions and avoid VAT) it is none of schools business to sell these scholastic materials to children,” Mr Okello said.
Scholastic materials have been VAT free and even paper importation by the said manufacturers is not taxed by URA.
“Schools are due it open for the First Term, should URA position on the matter stand, the cost of scholastic materials shall increase by 18 per cent which may cause dropping out of children [whose parents/guardians are poor],” Mr Okello added.
Mr Ian Rumanyika, the URA manager for public and corporate affairs, he will give “a comprehensive response today.”
Mr Patrick Kaboyo, the chairperson of Private Schools in Uganda, said everyone should pay tax if they make a profit.
“Issues of tax are a concern to the education sector but there are people who want to evade tax. If you are making a profit, you should pay tax and if exempted, show evidence,” Mr Kaboyo said by telephone yesterday.
URA closed its 2016/2017 account with a deficit of nearly Shs460 billion.
The shortfall recorded is about four times the budget allocated to the Ministry of Trade, Industry and Cooperatives combined and slightly more than half of the budget given to the Agriculture docket, a sector that supports livelihood of majority of the population.

30/11/2017

20/10/2017

24/08/2017

Waniko Consult

Requirements for NGO/CBO TAX Exemption

Information to be provided By a person applying to be considered as an Exempt Organization
1. Certificate of incorporation and/or Registration certificate from the relevant governing body.
2. Names of subscribers/trustees/members/governors/directors.
3. Memorandum and Articles of association/ constitution/ trust deed/ rules and regulations.
4. Categories and number of assets owned by the applicant.
5. Categories and number of assets held or owned by the subscribers /trustees / members/ governors / directors and by their spouses and children or other members of the family. In case of immovable property, indicate location and value.
6. Registration with URA by indicating TIN.
7. Income Tax returns for the previous 3 financial years for the applicant.
8. Income Tax returns for the subscribers or trustees or members or governors or directors for the last 3 years.
9. PAYE receipts for the last 6 months preceding the date of application.
10. Copy of tenancy agreement.
11. Audited financial accounts for the last 3 years.
12. Bank statements for the last 3 years for all bank accounts operated by the applicant.
13. Letter of confirmation from the local authority confirming existence and activities of the applicant.
14. Any other relevant documents or brochures that may be relevant in confirming the existence of operations, for example minutes of last Annual General Meeting (AGM).
15. A declaration certifying that all information as required has been provided without any omission and it’s correct.

Waniko consult is the Tax professional services firm in Uganda. It provides services like Tax audits,Tax planning,International tax, Return filing etc

22/08/2017

DEFINITION OF NGOs/CBOs UNDER ITA
It is not automatic that all NGOs are exempt. This status is determined by the nature of the organization’s activities.
Organizations that wish to be exempted, make an application using form DT 1017.
An exempt organization is described as any company, trust, institution;
1. Which is;
• An amateur sporting association.
• A religious, charitable or education institution of public character.
• A trade union, employees association, registered under the laws of Uganda or association established for purposes of promoting farming, mining, tourism, manufacturing, or Commerce and Industry in Uganda.
2. Which has been issued with a written ruling by the commissioner currently in force stating that it is an exempt organization.
3. None of the income or assets of which confers or may confer a private benefit on any person.

31/07/2017

20/07/2017

Timeline Photos

17/07/2017

Timeline Photos

14/07/2017

Timeline Photos

08/07/2017

Timeline Photos

30/06/2017

General Requirements for VAT Registration

(i) The applicant must have a fixed place of abode or business.

(ii) The applicant should be able to keep proper books of accounts.

(iii) The applicant should be able to submit regular tax returns.

(iv) The applicant should be a fit and a proper person. In the opinion of the Commissioner General.

29/06/2017

PENAL TAX FOR FAILURE TO FURNISH INCOME TAX RETURN IN TIME:
According to sec 48 of TPC a person who fails to furnish a tax return by the due date, or with in a further time given by the commissioner under this act is liable to pay a penal tax equal to 2% of the tax payable under the return before subtracting any credit allowed to the taxpayer on his or her tax return or Ten currency points per month whichever is higher for the period of the return is outstanding.
Note:
A Tax return under this Act means:
Income Tax Return AND
Provision Tax Return:

16/06/2017

RENTAL TAX FOR INDIVIDUALS

26/05/2017

Photos from Waniko Consult's post