URA rescinds position on sending money abroad

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URA boss Doris Akol. (Courtesy Photo/File)
By :

AT Reporter

Uganda Revenue Authority (URA) has rescinded a directive to commercial banks and other financial institutions in the country where it had wanted them to enforce the law that mandates people who want to transfer “any funds in excess of Shs50m outside Uganda” to present tax clearance certificate.

The Commissioner General, Ms Doris Akol, in response has written to all commercial banks withdrawing the compliance advisory to Section 134(d) of the income tax.

“Reference is made to the Compliance Advisory Circular Ref: URA /DT/COM 36 dated October 25, 2019. On further consideration and consultations, I hereby advise that the compliance with the circular will no longer be a requirement at this time,” Ms Akol’s October 31 letter to managing director Orient Bank reads in part.

“This communication supersedes the earlier one issued by the Commissioner Domestic Taxes. Developing Uganda Together”.

Ms. Akol’s latest letter was copied to Finance Minister Matia Kasaija, Governor Bank of Uganda Emmanuel Tumusiime Mutebile, Secretary to Treasury Keith Muhakanizi, Director Banks supervision at BoU, Dr Tumubweine Twinemanzi and the Uganda Bankers Association.

Related
URA Demands Tax Clearence Certificate Before Taking Cash Above UGX50m Out of Uganda

The revocation of the directive came on the same day the URA commissioner for domestic taxes, Mr Henry Saka had written to the managing director Orient Bank promising to engage stakeholders in the sector before implementation of the disputed tax clearance requirement in the Tax Income Act.

In his letter titled: “Compliance advisory – clarification” Mr Saka, told the managing director of Orient Bank, that the enforcement of the law requiring transfer of Shs50million and above will proceed after modalities of operation, following engagement has been agreed upon.

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