URA Moves To Help MSMEs Go Formal, Simplifies Tax Clearance Certificates For Public Procurement

By Our Reporter
The Uganda Revenue Authority (URA) has stepped up efforts to support Micro, Small and Medium Enterprises (MSMEs) in formalising their businesses, improving tax compliance and taking advantage of opportunities in public procurement.
URA participated in the Sustainable Public Procurement (SPP) workshop organised by the Ministry of Finance, Planning and Economic Development, where key issues affecting small businesses were discussed. The engagement aimed to help MSMEs understand their tax obligations, access relevant support and prepare themselves to benefit from government procurement opportunities.

During the workshop, URA addressed concerns raised by participating businesses and explained various tax practices and systems designed to make compliance easier. The discussions focused on helping businesses operate formally, meet the necessary tax requirements and compete for contracts in the public sector.

URA’s Tax Education Acting Supervisor for Content, Isaac Gyagenda, urged participants to embrace the automated Value Added Tax (VAT) return filing system. He encouraged businesses to file their returns on time instead of waiting until the deadline approaches, noting the importance of making tax compliance part of their regular business operations.
Gyagenda explained that timely filing can help businesses manage their tax responsibilities more effectively and avoid the pressure that often comes with last-minute submissions. He encouraged MSMEs to familiarise themselves with URA’s digital tax services and use them to meet their obligations without unnecessary delays.
He also explained the process of obtaining Tax Clearance Certificates (TCCs), which are important documents for businesses seeking to participate in public procurement processes. He clarified that after a business obtains its first approved tax clearance certificate, URA’s system automatically approves subsequent applications for a period of 90 days, subject to the applicable system requirements.

“We shall make the first approval of your tax clearance, and you’re going to receive it and go ahead and bid. Now, any other application for a TCC that you make, between today and 90 days, the system is going to give you automatic approvals,” Gyagenda explained.
The clarification is intended to help businesses understand the process and plan better when applying for government contracts. By explaining how the system works, URA is encouraging eligible businesses to complete their initial applications correctly and take advantage of the simplified process for subsequent applications within the 90-day period.
The workshop also provided an opportunity to discuss Sustainable Public Procurement reforms that will be integrated into public procurement processes. The reforms are intended to promote responsible procurement practices while encouraging businesses to improve their operations and meet the requirements needed to participate in government business.
URA’s participation reflects its continued engagement with the business community to promote tax awareness, encourage formalisation and improve compliance among small and medium-sized enterprises. Through such engagements, the authority seeks to ensure that businesses understand the available tax services and how they can benefit from them.

As government institutions continue to implement sustainable public procurement reforms, MSMEs are being encouraged to formalise their operations, file tax returns on time and understand the documentation required when bidding for public contracts.

The engagement highlights the importance of cooperation between URA, government agencies and the private sector in creating an environment where businesses can comply with tax laws, access procurement opportunities and contribute to Uganda’s economic development.