Taxation and economic growth in a resourcerich country. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and or foreign aid. Tax system the ministry of finance and national planning is responsible for the formulation of tax policy, in zambia and the implementing agency is the zambia revenue authority zra. A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer an individual or legal entity by a governmental organization in order to fund various public expenditures. For tax purposes, a corporation is a separate 1 from itstaxpayer shareholders, meaning that the corporate entity is subject to taxation on corporatelevel events. Jan 01, 2006 revenue law in uganda bakibinga, david j. Uganda, all the bills will become law on 1 july 2018. This book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda. Findings on revenue performance showed that the business are not able to generate revenues as they conducts their normal operations, poor record keeping makes. Collection of tax from persons leaving uganda permanently. Contractors in uganda are faced with masses of paperwork and numerous wasted hours filing a tax. In 1952, the ordinances were replaced by the east african. Impact of etaxation on nigerias revenue and economic growth.
Formation, reconstitution or dissolution of a partnership. Issues covered are deductions allowed and not allowed, income tax returns, assessments and tax rates and appeals and objections against assessment. There are statutes and laws for imposing the different taxes also enacted by acts of. Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm.
Data and research on tax including income tax, consumption tax, dispute resolution, tax avoidance, beps, tax havens, fiscal federalism, tax administration, tax treaties and transfer pricing. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. Unfortunately, very little is known about the revenue mobilization capacity of the tax system. Double taxation treaties in uganda impact and policy implications 7 tax provides the much needed revenue for governments to fund public services for its citizens. Finally, it considers the relationship between taxation and investment, the principle and practice of tax avoidance, and the statutory provisions for tax. Taxation in uganda at grant thornton, we appreciate the unique nature of tax law and the fundamental principles that underlie its interpretation and application. Like most developing countries, the government of uganda has embarked on numerous tax reforms over the last several decades. Value added tax act 1996 uganda legal information institute. Income tax act ita cap 340, the income of a savings and cooperative society is. The uganda revenue authority administers the tax laws acts on behalf of the ministry of finance, planning and economic. Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm growth rates. Introduction to taxation government plays an important role in most modern economies. Companies must file a return of income each year by 31 december following the end of the tax year.
In 1991, the function of administering central government taxes was shifted from the ministry of finance to the uganda revenue authority, a body corporate established by an act of parliament. In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using nigeria as a case study. Revenue law and taxation llb questions and answers page 1 b. In preparation of that, we present in the following some principles. This paper uses time series data for uganda during 19702000 to analyse the.
Officers and staff of the uganda revenue authority. The value added tax regulations, 2017 timely update. Commissioner general means the commissioner general of the uganda revenue authority. Some changes may arise when the finance bill 2015 and subsequently the finance act 2015 are published. The author found tax revenue as a percentage of gdp varying greatly around a global average of 19%. In its landmark decision in the case of uganda revenue authority vs rabbo enterprises uganda limited. The challenges of tax collection in developing economies. Access both online and pdf versions of all ey global tax.
Any property belonging to an organization in respect of which uganda is obliged under any international. The uganda revenue authority administers the tax laws acts on behalf of the ministry of finance, planning and economic development under the following legislation regulating taxes. Will a nonresident of uganda who, as part of their employment within a group company, is also appointed as a statutory director i. The eac was reestablished in 1999 by tanzania, kenya and uganda. Uganda, like many subsaharan african countries faces difficulty in raising tax revenue for public purposes. Aug 01, 20 2 revenue law and taxation questions and answers 1.
Income tax amendment act, 2017 uganda legal information. We provide our analysis of the new regulations as below. The challenges of tax collection in developing economies with special reference to india by pramod kumar rai b. This alert summarizes the key reforms contained in each bill. The legislative framework relating to the regulation and administration of the taxation is provided for in the income tax act 1966, as amended. It also covers the tax administration system in uganda. Given that uganda was a british colony, the english legal system and law are predominant in uganda. This hand book titled domestic tax laws is primarily intended for internal use by officers and staff of the uganda revenue authority. Vat is incomplete in one aspect or another, leading to less revenue being collected. Uganda budget highlights and quick tax guide 2015 diving. Income tax act 1997 uganda legal information institute. Extent to which the income is distributed to participants in the collective investment scheme. However, ugandas vat has become clearly less efficient as a revenue producer. Pdf the rise and fall of mass taxation in uganda 19002005.
This handbook, has been revised to simplify the laws which govern taxation, provide information and serve as reference material to our stakeholders. Using an umbrella company for income tax in uganda. A number of organizations are engaging government on taxation and revenue generation issues. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. Review and analysis of national and local government performance, opportunities and challenges with other revenue authorities in the region using the regional authorities digital data exchange system radex. A key reform promoted by the imf and world bank was the restructuring of uganda s taxation regime. This hand book titled domestic tax laws is primarily intended for internal use by. This data also indicates countries with higher gdp tend to have higher tax to gdp ratios, demonstrating that higher income is associated with more than proportionately higher tax revenue. Any person, other than an official of the uganda revenue authority, who expressly relies on this hand book in any legal proceedings without reference to the principal laws, does so at his or her own risk, and the uganda revenue authority or the government of uganda cannot be held responsible for any misrepresentations arising out of its use. A guide on tax incentivesexemptions available to investors in uganda income tax exemptions who qualifies conditions for granting exemption collective investment scheme must be licensed to operate as a collective investment scheme. The laws applicable in uganda are statutory law, common law. For instance, seatini is coordinating the tax justice alliance which is a cso. Upon registration, the person is issued a certificate of tax registration. Tax laws are structured into parts, sections and schedules.
A different accounting period referred to as substituted year can be opted for by seeking permission from the revenue authorities. Double taxation treaties in uganda mellemfolkeligt samvirke. International limited, has produced the pkf worldwide tax guide wwtg to. A foreign investor looking to conduct business in uganda would be liable to pay tax in uganda and would therefore have an obligation to apply to ura for a certificate of tax. Although great care has been taken to ensure that it reflects the correct wording and numbering of the income tax act, cap.
The course is about taxation particularly a brief introduction on the nature of taxes levied in uganda. This paper relates to the taxation regime in uganda. The reprint consolidates the income tax act, cap 340, the value added tax act, cap 349 and statutory instruments made. The new site provides streamlined navigation and advanced search capabilities. By and large, the participation of csos and nsas in taxation debate is improving. Domestic tax laws of uganda uganda revenue authority. Law on direct taxes on income no 16 of 2005 as amended law on valueadded tax no.
It documents both british and east african judicial decisions which govern revenue law. Domestic tax laws uganda i while making reference to this compendium, the following adaptations and general principles should be noted. Doc the law of taxation of companies income in uganda. The fiscal year in uganda runs from 1 july to 30 june.
On 10 july 2017, the supreme court of the republic of uganda ruled that all tax disputes must first be filed with the tax appeals tribunal tat and only brought before the high court on appeal from the tats ruling. It pays for schools and teachers, health centers and health care workers. Income tax management act, which laid down the basic legal provisions found in the current income. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. Section 11 of the internal revenue code code lists the progressive rates of tax on corporations. Click download or read online button to get introduction to taxation in uganda book now. This should be borne in mind when we undertake research in a more adequate and just taxation system as well for our three countries. Vat has become the workhorse of the revenue system in uganda because direct taxation continues to be relatively inefficient kayaga, 2007. Mobilising domestic resources and broadening the tax base to secure steady revenue streams for development financing and to diversify the revenue sources, especially in a context of tariff liberalisation that impacts strongly on tax revenue. As a description of reality, this is patently untrue. Tables, charts, practical examples and question and answer sections are included. Creation of uganda revenue authority in 1991 introduction of vat in july 1996 estab. To provide the learner with basic knowledge of taxation in uganda covering all aspects of.
The income tax act of 1997 part xv also provides the legal basis for various. It explores the chargeable income, tax rate, allowable deductions and non allowable deductions among other aspects of corporation tax. Therefore, the uganda revenue authority act cap 196 was put in place to provide the administrative framework in which taxes under various acts are collected. We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. One of the intentions was to lower the dependence on trade taxes, which reduced incentives for production, and to rely instead on indirect taxes on goods and services. Other sources of government revenue fines, licences, lotteries, rates, compulsory saving schemes, government securities local service tax references 1. Ulii is a member of the global free access to law movement and of the african lii. An act to consolidate and amend the law relating to income tax and for other connected purposes. Fighting tax evasion, spurred by tax havens, regulatory weaknesses, and some. In its landmark decision in the case of uganda revenue authority vs rabbo enterprises uganda. Revenue law and taxation i makerere university courses.
Tax briefly july 2017 the value added tax regulations, 2017 timely update. This site is like a library, use search box in the widget to get ebook that you want. Tax revenue is the income that is gained by governments through taxation. This act applies to years of income commencing on or after 1st july, 1997. The first edition was developed to guide our stakeholders in in complying with tax laws and procedures for central government taxes. Taxation is the primary source of income for a state. Ugandas supreme court confirms original jurisdiction of tax. The chamber of deputies, in its session of march 29, 2005.
Zambiainvest explains the fiscal framework in place in zambia, from corporate tax and income tax, capital gain tax, transfer pricing and thin capitalisation rules, double tax treaties in place and other taxes in zambia. This guide is prepared as a general overview of rwandan tax legislation, updated as at 1 january 2015. This study seeks to evaluate the productivity of the tax system in zimbabwe through the application of the concepts of tax buoyancy and tax elasticity. In order to provide for these program and services, the government needs revenues. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Our team of experts are at hand to offer tax solutions for all business categories. Law college, india, 2002 a thesis submitted to the graduate faculty of the university of georgia in partial fulfillment of the requirements for the degree master of law athens, georgia 2004.
Jan 01, 2001 this book offers a comprehensive and practical account of the legal and technical aspects of income tax in uganda. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Introduction to taxation in uganda download ebook pdf, epub. Based on this, the remuneration to a director who is a member of a board of directors for a company situated in uganda would be subject to tax in uganda. This study examined the impact of etaxation on nigerias revenue and economic growth. Tax buoyancy, tax elasticity, revenue productivity, tax reform, zimbabwe introduction most developing countries are finding it difficult to raise enough tax revenues to spearhead their developmental aspirations. You can find statutes, rules and other legal information about general tax, property tax and child support in our newly redesigned library. Recovery of tax from person owing money to the taxpayer. However, customary law is in effect only when it does not conflict with statutory law. Ugandas supreme court confirms original jurisdiction of. If the rate of tax calculated above exceeds 45%, then the rate of tax shall be 45% and, if the rate of tax calculated above is less than 25%, then the rate of tax shall be 25%.
475 1061 42 964 464 763 148 962 1169 1017 402 1263 435 762 917 118 356 521 467 467 349 931 398 1118 875 135 1340 1478 869 469 65 684 1479 245