How To Apply For Tax Exemption In Uganda

How To Apply For Tax Exemption In Uganda

What Is Tax Exemption?

Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, reduced rates, or tax on only a portion of items.

How To Apply For Tax Exemption In Uganda

1. Go to www.ura.go.ug and log in to your account with your TIN and password.
2. Under e-services,click on e-registration and then under “others” select.
3. Under Application Details,Select Application type from the drop down.
4. Enter your Tax payer Identification Number (TIN)
5. Select period of exemption from the drop down menu.

Who Qualifies For Tax Exemption In Uganda?

The exemption applies to income derived by a person from letting or leasing facilities whose minimum capital investment is Ugx 35831.95 million for foreigners, Ugx 1074958500.00 in the case of a citizen, or Ugx 537479250.00 in the case of a citizen whose investment is placed up country.

What Are The Conditions For Tax Exemption?

To be exempt from withholding, both of the following must be true: You owed no federal income tax in the prior tax year, and. You expect to owe no federal income tax in the current tax year.

How Can I Get Exemption From Income Tax?

Exemption of Allowances

1. House Rent Allowance. A salaried individual having a rented accommodation can get the benefit of HRA (House Rent Allowance).
2. Standard Deduction.
3. Leave Travel Allowance (LTA)
4. Mobile reimbursement.
5. Books and Periodicals.
6. Food coupons.
7. Relocation allowance.
8. Children Allowances.

What Is The Benefit Of Tax Exemption?

A tax exemption, as most taxpayers experience it, is the right to subtract some portion of income or some amount of money from top-line income. That income is ignored, so the taxes owed are reduced.

How Many Exemptions Should I Claim?

A single person who lives alone and has only one job should place a 1 in part A and B on the worksheet giving them a total of 2 allowances. A married couple with no children, and both having jobs should claim one allowance each. You can use the “Two Earners/Multiple Jobs worksheet on page 2 to help you calculate this.

What Does Exemption Mean In Tax?

A tax exemption excludes certain income, revenue, or even taxpayers from tax altogether. For example, nonprofits that fulfill certain requirements are granted tax-exempt status by the IRS, preventing them from having to pay income tax.

Should I Claim Exemption From Withholding?

You can claim exemption from withholding only if both the following situations apply: For the prior year, you had a right to a refund of all federal income tax withheld because you had no tax liability. For the current year, you expect a refund of all federal income tax withheld because you expect to have no liability.

What Happens If You Claim Exempt All Year?

When you file exempt with your employer for federal tax withholding, you do not make any tax payments during the year. Without paying tax, you do not qualify for a tax refund unless you qualify to claim a refundable tax credit, like the Earned Income Tax Credit.