Tax systems across the world evolved and moved away from traditional, government-led assessments to models that placed responsibility directly in the hands of taxpayers. At the heart of this transformation lay the self-assessment tax regime, a system where individuals and businesses compute, declare, and pay their tax liabilities under the law, without waiting for the tax authority to determine how much they owe.
The self-assessment tax regime reflects a global shift toward trust-based taxation, built on the belief that taxpayers are best positioned to understand their income, expenses, and deductions, and should therefore be responsible for reporting them honestly. This model is designed to promote voluntary compliance, streamline tax administration, and reduce enforcement costs. This method, therefore, makes it a win-win for both governments and taxpayers.
In East Africa, countries such as Uganda, Kenya, Tanzania, and Rwanda adopted the self-assessment model through various income tax and revenue administration laws. In Uganda, the Uganda Revenue Authority administers the system under the Income Tax Act Cap. 340 and the Tax Procedures Code Act, 2014. Similarly, Kenya operates under the Income Tax Act (Cap. 470), while Rwanda applies the Law on Tax Procedures No. 026/2019. These jurisdictions have increasingly digitized their systems to support real-time declarations and improve transparency.
Across the continent, Nigeria, South Africa, Ghana, Zambia, and Mauritius have also institutionalized self-assessment. South Africa, through the South African Revenue Service (SARS), has long championed a modern, taxpayer-centric model, while Mauritius aligns with OECD frameworks in its regime. Beyond Africa, self-assessment is standard in developed economies such as the United States, the United Kingdom, Australia, New Zealand, Canada, and many EU member states, all of which rely on it to manage large tax bases with minimal administrative friction.
A central legal doctrine underpinning this regime is the burden of proof principle. Under self-assessment, the taxpayer carries the burden to substantiate the information declared in their tax return. This means that in the event of a dispute or audit, the taxpayer must provide adequate documentation—receipts, ledgers, contracts, and computations—to support their declared income and deductions. In Uganda, this principle is recognized under Sections 16 and 45 of the Tax Procedures Code Act, which place the obligation of recordkeeping and truthful disclosure on the taxpayer.
Self-assessment systems are also built upon international standards and practices, many of which are shaped by the Organization for Economic Co-operation and Development (OECD). The OECD’s Model Tax Convention, Transfer Pricing Guidelines, and the Base Erosion and Profit Shifting (BEPS) framework provide the foundation for fair and transparent tax practices globally. Countries subscribing to these standards aim to ensure that taxation follows economic activity, profits are not artificially shifted, and taxpayers bear the duty to report and justify their tax positions.
Under Section 16 of Uganda’s Tax Procedures Code Act, 2014, taxpayers are expected to submit self-assessed returns under the Income Tax Act Cap. 340. The returns must reflect the correct income, allowable deductions, and the tax payable. URA may review these returns through audits or risk-based checks, but the burden of compliance begins and remains with the taxpayer.
Are you a business owner, company director, landlord, or self-employed professional? You fall within the scope of self-assessment. The process begins with registration for a Taxpayer Identification Number (TIN), which you can obtain free of charge through the URA portal. Once registered, you’re required to maintain proper records, including sales ledgers, purchase receipts, bank statements, asset schedules, and payroll documentation. These records form the basis of your self-assessment return, which must be filed and paid within specific statutory deadlines. Companies in Uganda are required to file returns within six months after their financial year ends, while individuals with rental or business income must file by 30th June following the income year. Monthly obligations such as VAT and PAYE must be filed and paid by the 15th of the following month, reinforcing the idea of ongoing responsibility rather than once-a-year attention.
The self-assessment regime is not just about filing returns, it’s about honest and timely disclosure. You are required to compute your tax using accurate figures, claim only lawful deductions, and use the correct tax rates. Failure to do so can attract severe consequences, including penalties, interest, and in some cases, criminal prosecution.
Filing a return does not end with submission. You must also pay the tax due using designated payment platforms or banks and obtain proof of payment. These documents must be kept safely, as they will be necessary in the event of an audit or future verification. If you engage a tax agent or consultant, the law allows this, but the agent must be compliant with their tax obligations. Important to know, your tax agent cannot sign the tax return on your behalf. As the taxpayer, you retain legal responsibility!
The Tax Procedures Code is clear in a way that non-compliance comes with consequences. Late filing of Annual Income tax attracts monetary penalties of UGX 200,000 or 2% of the gross tax liability (whichever is higher) applied for each month that the return is outstanding. Late payments accrue interest at 2% per month, compounded. If URA detects significant underreporting or evasion, it can impose additional assessments, audits, and even recommend criminal charges. Beyond penalties, the reputational damage and operational disruptions that arise from tax investigations can harm your business. It’s without doubt far cheaper and smarter to comply from the start!
Under the self-assessment tax regime, URA not only collects taxes but also plays a pivotal role as an enabler of compliance. It provides e-tax platforms, educates taxpayers through outreach programs, and issues public notices clarifying tax procedures. When necessary, URA may audit a taxpayer’s returns, but such audits are increasingly risk-based, focusing on inconsistencies or red flags. URA’s digital systems, such as the EFRIS, URA M-service app, and online instant TIN registration, have made compliance more accessible than ever. With the new amendments of FY 2025/2026, TIN registration is even instant for the newly registered businesses. As you register with URSB, URA also issues a TIN for your registered business.
Uganda’s 2025/2026 national budget, through the Minister of Finance, Planning, and Economic Development, clarified that taxation is not just a legal obligation; it’s a civic contribution. Roads, hospitals, schools, security, and public services all depend on a functioning revenue system towards building a more self-reliant Uganda.
According to the tax research papers, the self-assessment regime symbolizes a maturing democracy, where accountability flows both ways. Governments trust their people to pay their fair share, and the people, in turn, expect public services to reflect the value of their contributions.
Therefore, It Pays to Be Honest. Self-assessment is a trust. Let’s not betray it!
The writer is a Chartered Tax Advisor, an analyst, and a Chartered Accountant
