Withholding Tax Exemption Applications for the year 2023/2024

The Uganda Revenue Authority (URA) has issued a public notice informing the general public that the application process for the Withholding Tax Exemption for the Financial Year 2023/2024 will commence on 20 April 2023 and end on 20 June 2023. We have attached a copy of the notice for your reference.  

We note that this notice covers applications for exemptions from both withholding income tax and value added tax.

In its notice, URA indicated that it will only receive online WHT exemption applications and no physical applications shall be considered.

In addition, URA specified that a taxpayer who applies for the Withholding tax exemption will be vetted based on a compliance checklist and only compliant taxpayers will be granted the WHT exemption which will be valid for a period of twelve (12) months running from 01 July 2023 to 30 June 2024.

URA further indicated that the grant of the WHT exemption status is subject to automatic revocation before the end of the 12 months if it is determined that a taxpayer or its associate (s) fail to regularly comply with its tax obligations during the year 2023/2024.

It is worth noting that URA indicated that all applicants are advised to undertake a review of their tax affairs and ensure that they are compliant with the relevant tax laws and procedures prior to applying.

The steps to be followed in applying for the Withholding Tax Exemption and the compliance checklist against which taxpayers will be vetted have been indicated in the attached notice.

What this means to you

1. A taxpayer interested in applying for the Withholding tax exemption must review their tax affairs prior to the submission of the exemption application to ensure that the taxpayer is compliant with the relevant tax laws and procedures. This review should extend to the tax ledgers included in the taxpayer’s account on the URA Portal.
2. Once the compliance status of the taxpayer is confirmed, an online WHT exemption application must be submitted by 20 June 2023.
3. A taxpayer who is granted the WHT exemption status must ensure that they remain compliant with all the relevant tax laws and procedures.
4. This notice covers exemption applications in respect of withholding Value Added Tax and withholding income tax.   

KPMG is available to assist with any matters that may arise as a consequence of the above and advise further.