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.
Mr Henry Saka, the URA Commissioner for Domestic Tax, in a letter to Director for Supervision at Bank of Uganda, 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 purpose of this letter is to require the implementation of this provision. 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,” the letter, also copied to the URA Assistant Commissioner Large Taxpayers’ Office and the Assistant Commissioner for Compliance Management, adds.
It is not immediately clear why the taxman is moving to implement the directive.