Uganda Revenue Authority (URA) announced a change in the Tax Clearance Certificate (TCC) procedure effective 19th April 2021. The change specifies which taxpayer qualifies to receive the TCC. The TCC is an official document issued by URA as proof of filing and paying taxes. Many entities require the TCC when qualifying suppliers. 

Before this new procedure, taxpayers would only qualify for the TCC if they had cleared all outstanding tax liability at the time of application for the TCC. Therefore the change in procedure comes in to ease the process of getting the TCC and businesses should embrace it. The new procedure stipulates that taxpayers will not qualify for the TCC if, at the time of application, his/her e-TAX account has a total outstanding balance above UGX: 10,000,000 (Ten million). 

 

However, taxpayers can still get consideration for the TCC if they: 

a) Paid up the outstanding tax liability to an amount less or equal to UGX: 10,000,000 (Ten million) at the time of application for the TCC.

b) Entered into a formal instalment arrangement for the payment of the said outstanding tax liability.

c) In the case of disputed liability, the taxpayer has reconciled the outstanding tax account with URA and satisfied either a) or b) above.

Plan and ensure your tax liabilities are paid on time not to miss out on business opportunities.

 

For more information, visit the nearest URA office or contact:

Tel: 0323444621 

Twitter:@URAuganda

Website: https://www.ura.go.ug