Ugandan Money Agents to be Pulled into the Tax System
Published on: 22nd May 2014
Note -- this news article is more than a year old.
Uganda's mobile money agents are to be required to register for tax id numbers as the government seeks to widen its tax collecting reach into the informal sector.
Uganda Revenue Authority is set to issue the Tax Identification Numbers, in a move that has been generally welcomed by the mobile networks as it helps to formalise the industry.
Once issued a tax code, the mobile money agents will be required to prepare and file an annual returns report to URA that shows income, expenses and even any tax credit (withholding tax) that they may have.
At the moment, the majority of mobile money agents do not pay taxes on their business.
With an estimated 120,000 mobile money agents across the country, the authority could get Shs 12 billion (USD135 million) every year if all agents were to pay at least Shs 100,000.