KAMPALA – No taxpayer will be allowed to transfer more than UGX 50 million out of Uganda without a tax clearance certificate, the Uganda Revenue Authority (URA) has said.
In a letter addressed to among others, the Managing Director Orient Bank, the URA Commissioner for Domestic Tax, Mr Henry Saka, says the implementation of the directive is in line with the Income Tax Act.
“Under Section I34 (d) and regulations number 164 of the Income Tax Act, a taxpayer transferring funds in excess of 2,500 currency points from Uganda to a place outside Uganda shall obtain a tax clearance certificate from the commissioner,” Mr Saka’s letter reads in part.
“The requirement is that before transferring any funds in excess of UGX 50,000,000 (fifty million shillings) from Uganda to a place outside Uganda, the above tax clearance certificate should be presented by your clients and verified for authenticity by yourselves,” adds the letter, which Africa Tembelea has seen and is copied to the Director for Supervision at Bank of Uganda, the URA Assistant Commissioner Large Taxpayers’ Office and the Assistant Commissioner for Compliance Management.
It is not clear why URA intends to implement such a requirement at this point in time.
“Is it a form of foreign exchange control or,” asked Peter Mukiibi, a trader in Kampala.