Overview:
Directors and shareholders of deregistered companies may also face legal liabilities.
KAMPALA, UGANDA – The Uganda Registration Services Bureau (URSB) has launched a crackdown on companies that have failed to file their annual tax returns, with plans to shut down non-compliant firms.
This move is aimed at enforcing tax compliance and maintaining the integrity of the corporate registry.
According to a statement released by URSB on August 12, 2024, companies that have not filed their tax returns for over five years will be deregistered, effective August 30, 2024.
This means that these companies will no longer be recognized as legal entities, and will be unable to conduct business.
URSB has already published a list of companies that have been struck off the register on their website.
The list includes companies from various sectors, including finance, healthcare, and education.
Companies that wish to avoid shutdown must file their outstanding tax returns and apply for restoration by August 30, 2024, through the Online Business Registration System (OBRS).
This involves submitting all outstanding tax returns, paying any owed taxes, and providing updated company information.
Failure to comply will result in deregistration, which has severe legal implications.
Deregistered companies will lose their corporate status, and will be unable to conduct business.
Directors and shareholders of deregistered companies may also face legal liabilities.
URSB has emphasized the importance of timely tax compliance, as mandated by the law.
“Tax compliance is crucial for businesses to operate legally and maintain their corporate status,” said a URSB spokesperson.
“We urge all companies to take immediate action to file their outstanding tax returns and avoid shutdown.
The crackdown on non-compliant companies is also expected to boost revenue collection for the government, said URSB