This is a process where a registered small taxpayer makes changes in their Income tax return previously submitted to URA.
Under Income tax- Presumptive Tax
The threshold for presumptive Taxpayers is 150 Million Uganda Shillings.
For rate for Presumptive Taxpayers with Annual income between UGX 10M - UGX 50M are based on the location and nature of business.
For Presumptive Taxpayers with Annual income above Shs 50Million shillings but not exceeding Shs 150M, there are specific tax amounts applicable as prescribed in the Income-tax act or 1.5%, whichever is lower.
1. A presumptive taxpayer can seek to be assessed on profits instead of total sales. For this to happen the taxpayer must apply in writing to the Commissioner Domestic taxes with specific reasons. However, this will require the taxpayer to prepare financial statements.
2. A presumptive tax is a final tax and no tax credit is allowed to offset another tax liability in Uganda Revenue Authority. However, an offset can only be allowed in the following scenarios;
- Where a tax was withheld on the sales made.
- Where an amount was paid as provisional tax during the year of income.
3. No deductions are allowed in respect of any expenditure or losses incurred during the year of income.
4. A person who fails to file a return by the due date is penalised and a return is said to be late if it is filed after the due date. The penal tax is computed as; the greater of 2% of tax assessed or ten currency points (Shs. 200,000) per month for the period the return has been outstanding.
For more details about various rates of tax for Small Business Taxpayers, kindly click here to access a simplified guide.
Kindly open this step-by-step guide to file your presumptive tax returns.