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June 19, 2024

Uganda Revenue Authority updates portal enabling financial statement uploads

The Uganda Revenue Authority (URA) has updated its web portal to include a new feature to enable taxpayers to upload their signed audited financial statements when filing the final income tax return. This update on the web portal is intended to operationalize Section 16(5) of the Tax Procedures Code Act (TPCA), which requires taxpayers with an annual turnover of 500 million Ugandan shillings (UGX 500m) to furnish, with the taxpayer's return of income, audited financial statements prepared by an accountant registered by the Institute of Certified Public Accountants of Uganda (ICPAU).

Section 49A(2) of the TPCA provides that a person who fails to provide the commissioner with certain information upon request (i.e., information other than transfer pricing records) is liable for a penal tax of UGX20m. (Failure to timely provide transfer pricing records carries a UGX50m penalty.)

Although uploading financial statements onto the web portal when filing annual income tax return does not currently appear to be mandatory, it seems likely that any URA officer assigned to approve a filed tax return would require a taxpayer to either upload or submit a copy of the audited financial statements. Therefore, taxpayers should consider fast-tracking their statutory audit process to ensure audited financial statements are available when they file the income tax return.

It is crucial to maintain audited financial statements and have them ready for upload on the URA web-portal to ensure compliance with tax laws. Note that the portal also enables the URA to perform quick spot checks to assess whether a taxpayer's tax obligations are in good standing. Taxpayers should take note of the new portal to avoid any unnecessary penalties or adverse legal implications.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young (Uganda), Kampala

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor