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Last modified at 2019/11/01 03:48 VM. by Hudson Kalema

Service Description

This is the process of registering a payment for advance Income Tax on a persons' commercial vehicle during the financial year.

Definition of Advance Income tax

Advance Income tax is that tax paid by a person providing passenger transport services or a freight transport service where the goods vehicle used has a loading capacity of at least 2 tonnes. (Section 123 A)

How Advance Income tax is paid.

To pay advance Income tax, please register the payment on the URA web portal at (ura.go.ug) and selecting the following <e-Services> Payment Registration> Advance IT for MV>. Then fill in the details as required and submit. Print out the Payment Registration slip that appears on submission and effect payment using the payment mode you selected (bank, point of sale, mobile money or Visa/Master card, etc.)

Please note;
even taxpayers already filing tax returns are expected to pay advance income tax and will be given a credit at the end of their respective tax periods at the filing time.

Calculation of Advance Income tax

The rates for advance are specified in part III of the second schedule of the Income-tax and they are;

  • ​Goods vehicles – Fifty thousand shillings per ton per year.
  • For Passenger vehicles – Twenty thousand shillings per seat per year.

Example;

  1. For a truck with a loading capacity of 7 tonnes, the advance income tax is calculated as follows:

Tonnage X amount paid per ton

7 tonnes X 50,000 = 350.000 shillings per year

2) If an Omnibus carries 14 passengers, the advance income tax is calculated as follows:

Number of seats X amount paid per seat

14 seats X 20,000 = 280.000 shillings per year

Relevant links to guide you

  1. Step by step guide on how to pay advance income tax
  2. Booklet guide of the advance income tax​

Disclaimer: This catalogue is only a guide and should not be substituted for the Tax Laws, Rules and Guidelines. Always refer/consult the appropriate Tax Laws

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