URA Tower, the tax body’s head office
The Uganda Revenue Authority (URA) has reminded taxpayers who applied for Withholding Tax exemptions in Financial Year 2023/2024 to meet the set conditions by June 30th 2023.
On April 20, 2023, the URA issued a public notice to taxpayers who wish to benefit from withholding tax exemption for the period July 1, 2023 to June 30, 2023 in accordance with Sections 118A (2) and 119(5)(f)(ii) of the Income Tax Act and Section 5(2)(b) of the Value Added Tax Act, to apply.
According to the notice, the taxpayers were expected to ensure that all pending returns including for their directors or partners (where applicable) are submitted by June 30, 2023; all income tax payments which are due by June 30, 2023 are paid in full by June 30, 2023; payments due from other returns in the month of June 2023 are paid in full by June 30, 2023; and any other outstanding tax liability is paid in full by June 30, 2023 or an approved installment arrangement has been entered into with URA.
“Please note that where the above conditions are not met, your application for WHT exemption for the period 2023/2024 may not be considered,” URA warns in a statement issued on Wednesday.
Withholding tax (WHT) is a form of income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). This tax is deducted at source and remitted to URA in advance by the withholding agent.
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.
