If you are an employer, the Tax Procedure Code Act and the Income Tax Act as amended requires that all of your employees earning the minimum threshold required by month be registered for taxes. And in order for an employee or any other individual to be successfully registered, a unique ten (10) digit identifying number allocated by Uganda Revenue Authority to prospective Taxpayers to enable them meet their tax obligations.
This a unique ten digit identifying number which is allocated by Uganda Revenue Authority is known as a Tax Identification number, which is commonly refereed to as a TIN. This Tax Identification Number or a TIN is a legal requirement, and it does apply to all taxpayers regardless of their tax transactions be employees, employers, individuals, companies and etc.
With the TIN number, one is able to involve in the importation or exportation of goods within and out side Uganda, claim tax benefits that accrue to you for example tax refunds, access bank loans for amounts above UGX 50 Million shillings, acquire KCCA coin which is required to obtain a trading license, register or transfer motor vehicle / cycle, process land transactions above UGX 50 Million and do much more.
Who qualifies to pay URA taxes (Employee TIN)?
If you are still wondering who qualifies to pay taxes as an employee, the above image is an extract from URA about qualifies. Taking a close look and going through it all will show you that all employees earning salaries above the threshold of UGX 235,000/= per month qualify for paying URA taxes are supposed to be registered for tax.
Now that you have seen why you need a TIN number (benefits) and also seen who qualifies to be taxes as an employee, I am sure you are very eager to find out how to get started right? Getting or registering for a tax identification number is very simple and easy. I shared with you the entire process in that link. You can also check image well as it contains some vital information you may need.
