URA supports businesses with stimulus packages post Covid-19

Uganda Revenue Authority has renewed its commitment of leading Uganda to economic self-sufficiency status and appealed to taxpayers to commit to take this journey with the tax body.

Ian Rumanyika, URA’s acting Assistant Commissioner for Public and Corporate Affairs said that they shall endeavour to listen to taxpayers, try to understand their concerns and looking to develop their focused solutions that will make life easier and better for all Ugandans as they promote voluntary tax compliance.

He stated that at URA they are walking their mission of “providing an environment that delivers a delightful experience in revenue services and business facilitation.”

"The tax body assures taxpayers of a continued and sustainable commitment to enabling businesses thrive. URA is your business partner," he said.

He said URA responded to supporting businesses during and post Covid-19 by extended filing of monthly returns promotional activities to encourage tax compliance amidst the pandemic.

He said that this provision has been extended in respect to VAT, PAYE, LED, WHT and taxes under Lottery & Gaming returns.

"On 8th March 2020 provision was extended to taxpayers due to file returns by 15th April 2020, but were unable to file, granted 15 more days to file on 30th April, 2020. In addition, for those who failed to file their February 2020 returns by 15th March 2020 and were liable to late payment penalties, these penalties were waived, provided their February returns came in by 31st March 2020,"he said.

Rumanyika said that the tax body extended filing of annual returns promotional activities to encourage tax compliance amidst the pandemic.

He said all tax payers whose accounting date is in September 2019 and were due to file their corporation tax returns by 31st March 2020 but were unable to and granted a two (2) months amnesty.

"The new proposed date for filling will be May 31st 2020. Penalties and interest remitted for late filing if returns are filed by extended date. This will ease burden on taxpayers and limit the transmission risk between parties where digital channels are limited or nonexistent,"he said.

He further stated that they extended warehousing period.

"Suspension of auction of goods. URA has suspended auctioning of goods that have exceeded the warehousing mandatory period. This is because URA is aware of the setbacks that COVID-19 has caused,"he said.

He added that URA also extended the grace period for containers at the port from 9 days to 14 days.

"URA negotiated with Kenya Ports Authority for a grace period for free cargo clearance of Ugandan bound cargo. The free storage period has been moved from 9 to 14 days effective Monday 18th May 2020. Further negotiations will be held with the KPA to extend this to 21 days,"he said.

Enhancement of more flexible and convenient payment methods to the taxpayer,automation of the Withholding tax exemptions process,automation of the Tax Clearance Certificate (TCC) application to make its issuance faster are among other ways how URA supported businesses with stimulus packages post Covid-19.

Rumanyika explained that government has remitted customs duty to zero % on inputs to manufacture essential medical products and supplies including masks, sanitisers, overalls, face shields and ventilators for one year.

"Government has granted duty remission as specified to the Uganda list of all industrial inputs and raw materials for manufacture of goods to help manufacturers in the quest to boost production of the manufactured products in line with government policy on industrialisation,"he said.