URA Engages Hoima Officials as Taxpayers Seek Clarity on New Tax Changes

Tax changes affecting payroll, suppliers and local government operations came under scrutiny as the Uganda Revenue Authority (URA) engaged officials from Hoima District Local Government in a taxpayer education session.The engagement provided an opportunity for local government officials to raise practical questions about how recent tax changes are expected to affect their daily work and financial operations.

One of the key issues raised was the communication of changes in Pay As You Earn (PAYE), with officials seeking clarity on how the revised requirements are formally communicated and applied to employees.Participants also asked about the use of the National Identification Number (NIN) as the new Tax Identification Number (TIN), as well as concerns surrounding taxpayers whose TIN details have not yet been updated.The 30 percent PAYE rate was another area that attracted questions, with local government officials seeking a clearer understanding of its application and the circumstances under which it affects taxpayers.

The discussion also covered Value Added Tax (VAT) deductions on supplies, particularly how local governments should handle payments to suppliers while ensuring that the correct tax requirements are followed.Officials further sought guidance on the impact of tax amendments on already approved local government budgets.

They also raised concerns about suppliers affected by the new Shs300 million VAT registration threshold, including how VAT that had previously been deducted from their payments should be treated.URA officials responded to the concerns and provided guidance on the applicable tax requirements. The engagement was aimed at helping local government officials and suppliers better understand the changes, address areas of uncertainty and strengthen compliance with Uganda’s tax laws.