• Latest
URA Encourages Startsup to go Formal to Attract Growth

URA Encourages Startsup to go Formal to Attract Growth

4 years ago
Uganda and Aster DM Healthcare Sign MoU to Deliver Mobile Medical Clinic

Uganda and Aster DM Healthcare Sign MoU to Deliver Mobile Medical Clinic

3 hours ago
Stanbic Bank Backs Stecia Mayanja’s Concert with Shs15m Boost

Stanbic Bank Backs Stecia Mayanja’s Concert with Shs15m Boost

4 hours ago
UPDF Foils Suicide Bomb Plot at Munyonyo Basilica, Neutralizes Two Suspects

UPDF Foils Suicide Bomb Plot at Munyonyo Basilica, Neutralizes Two Suspects

4 hours ago
IGP Byakagaba Confirms Munyonyo Blast Linked to Motorcycle, Urges Calm

IGP Byakagaba Confirms Munyonyo Blast Linked to Motorcycle, Urges Calm

4 hours ago
Martyrs Day: Explosion Rocks Munyonyo

Martyrs Day: Explosion Rocks Munyonyo

5 hours ago
NCBA Bank Unveiled as Platinum Sponsor of Auto Show Kampala 2025

NCBA Bank Unveiled as Platinum Sponsor of Auto Show Kampala 2025

22 hours ago
SoftPower News
Tuesday, June 3, 2025
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
SoftPower News
No Result
View All Result
Home News

URA Encourages Startsup to go Formal to Attract Growth

by Nixon Segawa
September 16, 2021
URA Encourages Startsup to go Formal to Attract Growth

Ian Rumanyike URA, Assistant Commissioner Public and Corporate Affairs

11
VIEWS

As Uganda Revenue Authority (URA) celebrates 30 years anniversary, business Startsups have been advised to consider formalizing their business ventures given the enormous benefits associated.

Many Small and Medium enterprises in Uganda constitute 90% of the Private sector but many have remained informal and non-compliant due to fear of the presumed tax burden.

Related Stories

PSFU Urges Crackdown on Illicit Trade as URA Destroys Shs1.6bn Contraband

Uganda Gov’t, PSFU Launch GROW Loan to Scale Women’s Businesses

Museveni Creates New Unit to Oversee URA Operations And Fight Corruption

The fear to comply with taxes is rooted in the belief that it is costly to formalize a business and Startups also argue that formalising attracts URA to the business and makes operations difficult.

The Assistant Commissioner Public and Corporate Affairs in URA, Ian Rumanyika however notes that contrary to what startups think, there are many benefits to running a business formally.

Rumanyika says that businesses that have been formalized gain credibility and are headed for growth and continuity as well as being a magnet for investors.

He adds that besides these advantages, cross border business expands and with this comes expansion and growth.

“While many entrepreneurs complain that there is unfair taxation for startups and few to no incentives, Rumanyika notes that there are tax incentives and exemptions embedded in the country’s tax laws.  The non-discriminatory incentives accessible to both domestic and foreign investment are intended to spur investment in the country; attracting both foreign direct investments and local investments,” Rumanyika says.

Rumanyika adds that young startups should be aware of from international trade incentives including exemption on import duty on certain items, reduced import duty rates, import duty remission and high import duty rates on items that can be locally produced.

Rumanyika noted that, “This is aimed at boosting local production, promoting industrialization, import substitution and protecting the local market.”

To further solve the challenges of navigating taxation and protecting startups from unfair taxation, URA has taken to the digitisation of its taxation system on a platform called Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

The new smart business solution is used to record business transactions and share the information with URA in real-time, to generate e-receipts and e-invoices. Under the EFRIS, startups can receive refund claims using e-receipts or e-invoices that are fast-tracked given that the information shall be available in the system.

Also, URA provides a report of the taxpayer’s transactional data on sales and purchases through the tax period which the taxpayer either confirms or modifies to include additional information.

The pre-filled tax returns help taxpayers to avoid penalties for late or non-filing and would enable them to have fair assessments of their tax positions and reduce unfair competition in business.

The Legal Tech Lab Lead at The Innovation Village, Hellen Mukasa says that when startups embrace legal knowledge it becomes a springboard to gain a competitive edge.

Mukasa believes that entrepreneurs shy away from registering businesses because of the expected costs once on the taxation radar.

“While they set out to save money, they end up losing out on great opportunities for markets that prefer working with formal businesses. To demystify the process of formalising businesses, the Legal Tech Lab partners with institutions like URSB and Uganda Revenue Authority (URA) to provide information about intellectual property protection and tax compliance respectively,” Mukasa says.

Mukasa adds that the move towards tax compliance begins with a mindset change and she hopes that The Legal Tech Lab will help to change legal services from the perspective of a curative service to a preventive service through compliance of startups with the law.

Tags: BusinessIan RumanyikeSatrtupsURA

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

Recent Stories

Uganda and Aster DM Healthcare Sign MoU to Deliver Mobile Medical Clinic

Stanbic Bank Backs Stecia Mayanja’s Concert with Shs15m Boost

UPDF Foils Suicide Bomb Plot at Munyonyo Basilica, Neutralizes Two Suspects

IGP Byakagaba Confirms Munyonyo Blast Linked to Motorcycle, Urges Calm

Martyrs Day: Explosion Rocks Munyonyo

NCBA Bank Unveiled as Platinum Sponsor of Auto Show Kampala 2025

Visit UBOS Website
SoftPower News Logo

SoftPower News is a subsidiary of SoftPower Communications LLC, a Ugandan digital media group. Keep posted of the latest from Uganda and East Africa.
Plot 4B Malcolm X, Kololo
P.O Box 1497, Kampala - Uganda
Tel: +256-392-001-701
Email: info@softpower.ug

This news site is licenced by Uganda Communications Commission (UCC)

ADVERTISEMENT
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
  • Regional
  • Defence & Security
  • Sport
  • Entertainment
  • More

© SoftPower News

error: Content is protected
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women

© SoftPower News