KAMPALA – Uganda Revenue Authority (URA) has backed down on a decision in which it had directed commercial banks and other money transfer firms not to transfer money amounting to UGX50 million outside without a tax certificate.
Doris Akolo, the Commissioner General URA in a letter dated October 31 to Commercial Banks, says that compliance with the earlier circular will no longer be a requirement t this time.
She added that the new communication supersedes the earlier one issued by the Commissioner Domestic taxes.
Mr Henry Saka, the URA Commissioner for Domestic Tax, in an earlier letter to Director for Supervision at Bank of Uganda, had said that the implementation of the directive was in line with the Income Tax Act.
Uganda now remains one of the countries that operate a free capital account, where investors bring in their money and can take it out anytime they want.
Previously, URA had sought powers to monitor people’s bank accounts to see how much money goes and whether it rhymes with the taxes declared.
This was vehemently rejected by the public.