Leveraging your business to pay taxes through loans might create a situation where you trade one liability for another with more adverse commercial implications, bearing in mind that whereas tax due attracts interest at minimal rates(2%), commercial banks lend at much higher rates(above 15%).
Category Archives: TAX COMPLIANCE
The informal sector and URA’s struggles with widening the tax base.
“Trading through companies is much more technical and with recent increased enforcement from the regulators, this means entities can no-longer get away with non-compliance as has been the case, and yet tiny businesses can’t absorb the steep compliance costs (both with URA and URSB).
I have in the past advised owners of tiny enterprises to stick to sole proprietorship or partnerships as business vehicles until it becomes absolutely necessary to incorporate, in which case those businesses can be sold to corporations in consideration for equity.”
INCOME TAX(AMENDMENT) BILL 2023, MORE AGGRESSIVE TAXATION OF THE REAL ESTATE SECTOR MAY BE COMING.
Under the Act, ‘tax is imposed on a person who has chargeable income for the year of income’. And so there must be income to begin with and yet this amendment seeks to tax both gains and losses, or rather even when it’s obvious that there’s no income to tax.
2021 RENTAL TAX CHANGES; COMPLIANCE GUIDE FOR LANDLORDS AND TAX PROFESSIONALS.
It is obvious from the above illustration that the tax payable after the 2021 amendment is much less; only just a little more than 10% of what was paid before the amendment. I am not sure whether this was intentional or is a result of a grave oversight error on the side of the people in Ministry of Finance and URA who principally are the originators of the income tax(amendment) bill 2021 that we now have as law.
Accountants and Tax lawyers in Uganda’s Tax advisory space; difference in roles demystified.
Subscribe to our newsletter and have our latest insights sent to your email! MARK RUHINDI The classic case of a Ugandan businessman’s understanding of who a tax consultant is one that amazes me. It is the misunderstanding or even outright ignorance surrounding the roles of accountants and tax lawyers in tax advisory and services. AndContinueContinue reading “Accountants and Tax lawyers in Uganda’s Tax advisory space; difference in roles demystified.”