Last Friday, we gathered for a high-impact knowledge session on Tax Compliance for Businesses in Uganda, hosted in collaboration with Forvis Mazars in Uganda and partnership with the Netherlands Trust Fund Program (NTF-V) ITC Tech Entrepreneurship
A huge thank you to all who attended and contributed to the enriching discussion!
This session unpacked some of the most pressing issues businesses face in navigating Uganda’s complex tax landscape, highlighting compliance essentials and smart strategies for risk mitigation.
💡 Key Takeaways from the Session:
🧾 Understanding VAT Compliance
VAT registration thresholds, exemptions, and penalties were broken down with real-world case references. Timely registration, proper input tax apportionment, and adherence to EFRIS obligations are critical to avoid costly penalties.
🏛️ The EFRIS Mandate
Since July 2020, EFRIS has been mandatory for all VAT-registered entities. Non-compliance leads to significant fines (up to UGX 30 million) or imprisonment. Businesses were urged to reconcile EFRIS sales with income tax records and integrate systems early.
💼 Withholding Tax (WHT) Triggers
The group explored WHT obligations on both local and international transactions, including professional services, dividends, and asset sales. Key takeaway: Ensure timely filings to avoid 2% interest per month on late payments.
🌍 Reverse Charge VAT & Digital Services
With cross-border transactions, businesses must be aware of reverse charge VAT obligations, especially for imported digital services. Not claiming this properly is a common audit red flag.
👥 Employment vs. Self-Employment
Clarifying the employment status of workers is crucial. The wrong classification can trigger compliance issues in PAYE, NSSF, and benefits taxation.
📝 Stamp Duty Optimization
Did you know that failing to stamp legal instruments (e.g., loan agreements, tenancy contracts) within the prescribed time could invalidate them? We explored how to plan stamp duty strategically to avoid disputes and penalties.
⚖️ Managing Tax Disputes
From third-party declarations to audit defense strategies, participants were encouraged to prepare proper documentation proactively, and early professional engagement is key to managing disputes efficiently.
🎯 Final Insight:
“Tax compliance isn’t just about avoiding penalties; it’s about building a credible, resilient, and investor-ready business.”
🙌 Thank You!
Deep gratitude to the Forvis Mazars in Uganda team, especially Mutabaazi Major James, Ritah Nalubanga, ADIT and Margaret Nassali ACIM – for leading this impactful session.
Let’s continue demystifying tax, one smart conversation at a time!