Nonprofit/non-federal government companies provide very good triggers that enhance authorities and general public executions without the need of a financial gain motive.

The superior leads to are essentially for particular lessons of men and women like females, young children, the youth and aged, refugees, and with primary emphasis regions like health and fitness, instruction, environment, social and political welfare.


These NGOs run their things to do by way of funding acquired in variety of contributions, grants and donations. It need to nonetheless be noted that their funding qualifications creates a mistaken assumption of an automatic tax absolutely free atmosphere that NGOs are not topic to taxation.

NGOs in Uganda do not have a unique tax regime. Whereas their profits has aid from cash flow tax, particular tax obligations are not waived/exempted by regulation – for case in point withholding taxes on workforce and suppliers, stamp obligation on legal devices, all oblique taxes on provides, products and services these types of as utilities h2o, electrical power etc.

As much as Uganda’s cash flow tax laws is worried, NGOs will normally have no money tax liability for the reason that of the mother nature of business enterprise they perform which is nonprofit.

At a sensible degree, the funding obtained by NGOs forms their company cash flow. NGOs will have to hence consider techniques to be certain that their money/receipts are not taxed.

NGOs can utilize to the Commissioner Typical URA for penned rulings for recognition as exempt companies.

Short of this technique, NGOs can not claim to be exempted from cash flow tax.

When the NGO has attained a ruling for recognition as an exempt group, it will be issued with a certification of Exemption by the tax Authority.

It ought to be mentioned that as an exempted NGO, the NGO should desist from any profitable pursuits or else, there is danger that evens will be damaged and the exempt status will be lost.

Even so, it is advisable that if the business engages in rewarding actions, it need to use any revenue to fulfill its targets. Per se the earnings really should not benefit any personal individual other than for use in satisfying the organization’s aims.

As an exempted business less than Uganda’s cash flow tax laws does not negate the obligation to file income tax returns. Like other entities (organizations, partnerships or trust), the obligation to file profits tax returns is obligatory even if no tax is payable.

In summary, Taxation of NGOs in Uganda is a complicated topic. Any NGO sealed in the misunderstanding that tax is not of a great deal issue for them really should foresee this as a risk to their things to do in the long run.

Lawyer and Tax Expert at
M/s PHLEB Affiliated Advocates. Get in touch with: [email protected]


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