Uganda Withholding Tax Exemption (WHT) for the period 1st January 2014-30th June 2014.

Please find below a guide on the definition of compliance with regard to the criteria that shall be followed while selecting clients who shall enjoy the WHT exemption benefit for the period 1st January 2014-30th June 2014.

Section 119A (2) of the Income Tax Act, Cap. 340 provides for exemption from withholding to a professional who the Commissioner is satisfied has regularly complied with the obligations imposed on that person under the Act. The compliant professional shall be one that;

Has a FIXED PLACE OF ABODE
Section 119 (5) (f) (ii) of the Income Tax Act, Cap. 340 provides for exemption to a supplier or importer who the Commissioner is satisfied has regularly complied with the obligations imposed on the supplier or importer under the Act. The compliant importer or supplier shall be one that;
Has been registered with URA for at least THREE (3) years
Has been actively in operation for the last CONSECUTIVE 3 years
Has not changed their nature of activity in the last THREE (3) years
The following criteria shall be applied for both categories;
Registration profile must be up-to-date in the following areas;
A valid contact person's mobile telephone and email
All directors having new TINs
Contact address
Up to date in filing provisional/final income tax, PAYE and VAT returns (where applicable) by the due dates for the last three preceding years. Returns shall be verified to confirm;
Nil variance after comparison of Income Tax sales and VAT sales, imports and exports made against those declared in tax returns.
Sales in VAT returns to VAT registered clients are correctly declared in the output schedule. Clients with an offset or refund claim solution, unless they deal exclusively in zero rated items, shall not be granted this facility.
That where rent is declared as an expense in the income tax return, the landlord details are shown in the schedule as required.
Fully complied with the obligation to withhold tax under Sections 83, 85, 116, 117, 118, 119A, 119 and 121 of the Act.
Directors must be either filing returns or at least be on the company's staff payroll.
Directors' declarations should meet minimum thresholds. For more information, kindly contact your compliance office.
Settled all tax by due dates for each of the preceding three years, paid all customs dues to date or has a signed memorandum of understanding to pay any outstanding taxes in installments.

Kindly comply with these requirements to avoid inconvenience to your operations.
Domestic Taxes Management - URA