The Uganda Revenue Authority (URA) in letter dated October 25, 2019 and addressed to all banks warned financial institutions on section 134(D) of the income tax act.
Under Section 134 (d) and regulation number 164 of the Income Tax Act, a taxpayer transferring funds in excess of 2500 currency points from Uganda to outside is required to obtain a clearance certificate from the URA Commissioner General.
“The purpose of this letter is requirement for implementation of the provision. The requirement is that before transferring any funds in excess of Shs50,000,000…from Uganda to a place outside Uganda, the above tax clearance certificate should be presented by your clients and verified for authenticity by yourselves,” said Henry Saka, URA Commissioner Domestic Taxes.
Saka has urged commercial banks to resolve the issue as required by the law, warning that failure to respond is an offence. “Please take note that failure to comply with the obligations of the law is an offence,” he said.
Saka has copied the letter to Director Bank Supervision at the Bank of Uganda which regulates the banking industry.