 is responsible for collecting and managing tax revenue on behalf of the government. As such, it is important to understand the process of filing tax returns with the URA to ensure compliance with tax laws and avoid penalties){kind=link}
In this article, we will provide a step-by-step guide on how to file tax returns with the URA.
Filing tax returns can be a daunting task, but it is a necessary requirement for individuals and businesses alike. In Uganda, the Uganda Revenue Authority (URA) is responsible for collecting and managing tax revenue on behalf of the government. As such, it is important to understand the process of filing tax returns with the URA to ensure compliance with tax laws and avoid penalties.
Tax returns are a form of self-assessment that taxpayers are required to submit to the URA on an annual basis. These returns provide information about a taxpayer’s income, deductions, and other relevant financial information that is used to determine their tax liability. Filing tax returns is mandatory for all registered taxpayers in Uganda, including individuals, companies, partnerships, and other entities.
Why File Tax Returns with URA?
Filing tax returns is an important obligation that every citizen and business owner must fulfill. Firstly, it ensures compliance with tax laws and regulations, which are necessary for maintaining a stable and fair tax system. Filing tax returns accurately and on time helps to avoid penalties and fines that can arise from non-compliance with tax laws. By paying taxes, individuals and businesses contribute to the development of the country and its infrastructure. Taxes collected from citizens and businesses are used by the government to fund public services, such as healthcare, education, and transportation, which are essential for the well-being and progress of society.
Secondly, filing tax returns also helps individuals and businesses to establish their financial credibility. By providing an accurate record of their income and expenses, tax returns help to create a transparent financial history that can be used to support loan applications, credit approvals, and other financial transactions. Moreover, filing tax returns helps individuals and businesses to track their financial performance over time and make informed decisions about their future financial goals. By maintaining a consistent and accurate record of their tax filings, individuals and businesses can build trust and credibility with financial institutions, investors, and other stakeholders.
Read Also: Calculate Car Taxes in Uganda
How to File Tax Returns with URA
1. To begin, visit the URA homepage and sign in to your account. If you haven’t created an account yet, click on Register and follow the instructions to create one.
2. Once you’re logged in, access the e-Returns section from the Left Menu. Choose the type of return you want to file from the options listed under Original, Amended, or Others. For instance, you may select INCOME TAX PROVISIONAL.
3. Next, download the template for your chosen return from the e-Returns list. For example, you could download the INCOME TAX RETURN FORM FOR INDIVIDUAL WITH BUSINESS INCOME template and save it to your device.
4. Save the downloaded template to your preferred location on your computer. Keep in mind that an internet connection isn’t necessary for filling out the template.
5. Open the saved template file.
6. Before proceeding to fill out the form, make sure to enable macros. You can find the instructions for this on the help sheet that comes with the downloaded form.
7. Fill in all the required fields on the form. Once you’re done, click the VALIDATE button located on the last page of the return to validate your inputs.
8. If there are any errors, make the necessary corrections and save the file before validating again.
9. If there are no errors on the template, click YES on the pop-up window to generate an Upload file. This file will be compressed and will take less time to upload. It’s recommended that you don’t rename the Upload file.
10. Log back into your URA account on the web portal if you had previously disconnected to fill out the template.
11. From the Left Menu, access the e-Returns section. Choose the type of return you want to upload from the options listed under Original, Amended, or Others, such as INCOME TAX PROVISIONAL.
12. Specify the period for which you’re filing the return and click check.
13. Provide all the required details and upload the return. a. In case of online validation errors, correct the specified errors on the saved template file (from which you generated the Upload file), save it, validate it, and create another Upload file (refer to steps 7 – 9). b. Retry uploading the file.
14. If the upload is successful, click Submit to submit your return.
15. After submission, an e-Acknowledgement receipt will be generated, and a copy will be sent to the email address you provided during registration.