In the world of VAT, importation is considered a form of ‘value addition.’ When an item is imported, its value is enhanced because it has entered a new stage of the production or trade chain. It’s important to note that a product doesn’t have to be manufactured locally to be subject to VAT. As long as it plays a role in the extended production or trade chain that leads to a final consumer’s purchase of any good in Uganda, VAT applies to the transaction so long as it is not in respect of an exempt supply. This is where the concept of import VAT becomes significant, as it can be treated as an input tax credit to the benefit of the importer at compliance stage.
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THE MRT TAX AND GOVERNANCE MASTERCLASS.
The training seeks to enable participants understand the nexus between governance and taxation and highlights some of the most critical governance and management traps and lapses to avoid going forward, in order to protect businesses from taxation troubles and other commercial risk with roots in governance, while highlighting through illustrations, tax planning strategies to employ in order to keep liabilities at a minimum.
The masterclass is also aimed at equipping participants with the right knowledge needed to adapt businesses to the complexity in tax compliance introduced by changes in revenue law and taxation over the the past few years starting with the year 2020.
TAX COMPLIANCE AND TAX POSITIONS; WHY IT MATTERS TO UNDERSTAND YOUR TAX POSITIONS.
Uganda operates a self assessment taxation system where the presumption is that the tax payer’s reporting is premised on the correct tax positions and that’s why tax problems never emerge immediately until years much later.
THE MRT TAX BANKING AND FINANCIAL SERVICES TAX RISK MASTERCLASS.
This training will be most beneficial to professionals in credit risk, legal, taxation and finance roles in the banking and financial services industry but generally to all individuals with a keen interest in understanding tax risk in transactions. It’s aimed to enhance participants’ knowledge and understanding of the taxation peculiarities of banking and financial services and the transaction tax risk mitigation strategies applicable.
Participants will get to appreciate the taxation peculiarities and complexities applicable to the banker-customer relationship and tax risk that arises as a result of this special relationship. We will be discussing at length the pitfalls and tax risk apparent in the various transactions including international money transfers, mortgages and securities, finance leases among others and how it arises as well as transaction best practices to mitigate this risk.
THE AIRTEL UGANDA IPO: EVALUATING AIRTEL’s TAX RISK AND DIVIDEND POLICY – KEY CONSIDERATIONS FOR INVESTORS.
I do note from the prospectus that, Airtel Uganda has taken commendable steps in securing such private rulings pertaining to a significant portion of its inter-party transactions. In my assessment, this proactive measure effectively mitigates a significant risk factor, particularly regarding the prospect of the Uganda Revenue Authority (URA) raising any future unanticipated tax liabilities against the business in respect of these transactions.
RESIDENCY TAX AVOIDANCE: THE STORY OF BRITISH BILLIONAIRE LORD SUGAR AND HIS £186M TAX TAB AFTER A RECENTLY FAILED AVOIDANCE SCHEME.
Ugandan tax residency rules, just like those of many commonwealth jurisdictions are in many respects similar to those pertaining in the UK. Under Ugandan law, a taxpayer who is a natural person is resident for tax purposes if they have a permanent home in Uganda, or they are present in Uganda for an aggregate of 183 days in the year of income or are present in Uganda for a period averaging 122 days in the year of income and in the two years preceding the year of income or if they are a Government employee posted abroad during the year of income.
RENTAL TAX COMPLIANCE GUIDE FOR LANDLORDS.
MARK RUHINDI Changes in tax law are frequent that for even the most specialized tax lawyers it becomes too frequent that we sometimes fail to keep up, and this is a call to government to strive to ensure that we don’t have changes to law as frequent as we have seen recently as this worksContinueContinue reading “RENTAL TAX COMPLIANCE GUIDE FOR LANDLORDS.”