A taxpayer can pay the exact amount agreed as principal tax and still discover years later that the tax ledger shows principal outstanding and interest continuing to accumulate. That problem sat at the centre of CARE International in Uganda v Uganda Revenue Authority , TAT Application No. 353 of 2025, decided by Uganda's Tax Appeals Tribunal on 7 September 2026. The ruling is important for finance and tax teams because it moves the discussion beyond whether tax was paid. It asks the next control question: how was the payment actually allocated on the taxpayer's ledger? FGL takeaway: Paying a tax assessment is not the final control. The payment must also be reconciled to the tax authority's ledger, including how the amount was split between principal tax, penal tax and interest. The dispute in brief CARE International in Uganda is a non-profit international organisation involved in humanitarian activities and emergency response. The underly...

On 7 September 2026, the Uganda Revenue Authority published the compliance risks that will receive particular attention under its Compliance Improvement Plan for the 2026/27 financial year. The notice lists 22 risk areas covering inventory, excise duty, exports, sales, expenses, payroll, withholding tax, EFRIS, Digital Tax Stamps and related-party transactions. The practical response is to review the links between your accounting records, tax returns and operational systems before URA asks for an explanation. Do not force every record to match. Identify genuine errors, correct them through the proper process, and document valid timing, classification or system differences. This article explains what URA has announced and sets out a practical readiness programme for finance teams, tax managers and business owners. It does not assume that every organisation will face an audit or that every variance represents unpaid tax. What URA Actually Announced URA says the FY 2026/27 ...

Jurisdiction: Uganda · Topic: EFRIS and VAT withholding · Effective date: 1 July 2026 · FGL review: September 2026 Uganda's VAT withholding rules changed from 1 July 2026. A person designated to withhold VAT is not required to withhold VAT on a payment for taxable supplies where the supplier issues the designated person with an e-invoice or e-receipt in accordance with the Tax Procedures Code framework. The practical effect is important for both buyers and suppliers: a valid EFRIS document can now affect whether VAT withholding applies to a payment. But this is not the same as saying that VAT withholding has disappeared, or that every document described as an EFRIS invoice automatically produces the same result. What changed from 1 July 2026? The Value Added Tax (Amendment) Act, 2026 changed the VAT withholding framework to exclude a designated person from withholding VAT where that person pays for taxable supplies and is issued with an e-invoice or e-rec...

Uganda's Financial Year 2026/27 Budget is more useful to a finance team when it is read in two layers: first as a statement of Government policy and spending priorities, and second as a set of tax and compliance changes that must be implemented in day-to-day systems, payroll, invoicing and reporting. The Budget Speech was delivered to Parliament on 11 June 2026. The final resource envelope is approximately UGX 84.39 trillion , including domestic revenues of about UGX 45.96 trillion, of which roughly UGX 40.16 trillion is tax revenue. The Government's stated development priorities continue to centre on agro-industrialisation, tourism, mineral-based industrial development, and science, technology and innovation. FGL review: September 2026. This article reflects the enacted and operational position reviewed after the Budget Speech, rather than treating every proposal announced in June as automatically final law. The Budget Speech Is Not the Same Thing as the Final Tax Law ...

Jurisdiction: Uganda · Topic: VAT registration and EFRIS · FGL review: September 2026 Not every business in Uganda is automatically required to register for VAT. The key starting point is whether the person is making taxable supplies and whether the statutory registration threshold has been met or is expected to be met. VAT registration and EFRIS are related, but they are not the same thing. VAT is a tax regime. EFRIS is an electronic invoicing and receipting system used by URA for transaction reporting and compliance. What is VAT in Uganda? Value Added Tax is an indirect tax charged on taxable supplies made by taxable persons, on taxable imports of goods and on imported services that are not exempt. Uganda's standard VAT rate is generally 18%, while some supplies are zero-rated at 0% and others are exempt under the VAT Act. Who must register for VAT? Under the current VAT Act and URA guidance, the annual registration threshold is UGX 300 million of taxable s...