How to File Directors Tax Returns Online - Simple and Easy Steps
20 Dec 2023
14 min read
A director's tax return refers to the financial documentation submitted by company directors to tax authorities. It outlines their personal income, expenses, and other relevant financial details for a specific tax year.
Directors are legally obligated to file these returns accurately and on time.
The process involves reporting income from various sources, including salary, dividends, and any other benefits received from the company. Additionally, directors must declare any other personal income, such as rental earnings or investments.
Filing a director's tax return ensures compliance with tax laws and helps determine the amount of tax owed.
%20(1).png)
Legal Obligation to File Director's Tax Returns in Uganda
If you are a company director in Uganda, you have a legal obligation to file your individual tax returns separately from your company returns.
The above legal obligation is consistent with section 4 of the income tax act of Uganda Cap 340, which requires every person who has chargeable income for a year of income to make a return of income to the Uganda Revenue Authority (URA).
How is the filing conducted?
A company director can use DT-2007 Income tax return form for individuals with employment income.
DT-2007 Income Tax Return form for individuals with employment (call it "Directors return") is used by persons (individuals) in the capacity of company director to declare income derived from employment as a director.
DT-2007 is the self-assessment form used to by directors to declare the tax so withheld by the employer company for the year within 6 months after the end of that year.
What should I include in the directors return?
While filing the directors return, include the annual enolments earned by the directors in the year including;
Annual basic salary
Total of the allowances paid to the director, clearly classified into taxable and exempt,
Total of the benefits in kind earned by the directors in the year and
Profits in lieu of salary
Please note that “profit in lieu of salary” refers to income received by an individual that is not directly categorized as a regular salary but is treated as such for tax purposes. It typically includes monetary benefits or compensation received by an employee in place of their regular salary. Here are some scenarios where “profit in lieu of salary” might apply:
Bonuses and commissions
Lumpsum payments
Gratuities and tips
Monetary benefits such as special payments
Directors Tax Return Due Date
The deadline for filing individual tax returns is 30th June of every year, while the deadline for filing company returns is six months after the end of the accounting period.
Failure to file returns on time may attract penalties and interest charges.
.png)
Director's Return Submission Procedure
The procedure for filing directors returns is as follows:
STEP 1: - Register for a Tax Identification Number (TIN) if you do not have one already. You can do this online through the URA web portal (https://ura.go.ug/)
STEP 2: - Log in to the URA web portal using your TIN and password.
STEP 3: - Select "e-Services" and then "Individual Income Tax Return".
STEP 4: - Fill in the required information, such as your personal details, income sources, deductions, tax credits and tax payable.
STEP 5: - Attach any supporting documents, such as withholding tax certificates, dividend vouchers, rental income statements, etc.
STEP 6: - Submit your return and print a copy for your records.
STEP 7: - Pay any tax due using the payment registration number (PRN) generated by the system. You can pay online or at any bank branch.
Why Director's Tax Return?
Filing directors returns is not only a legal requirement, but also a good practice that demonstrates your compliance and accountability as a company owner.
It also helps you to avoid unnecessary fines and penalties, and to claim any refunds or credits that you may be entitled to.
Do you need help with your tax returns? We can help!
Contact us Via WhatsApp or call: +256764001380 / +256701690601.
We offer both consultancy and training on all tax related matters.
About the Writer
CPA Innocent MUGISHA
CPA Innocent Mugisha is a Professor of Finance and Accounting with over 10 years experience in teaching Accounting and Finance related courses including Financial Accounting both at University and Professional level. His qualifications are: PhD (candidate), MBA(Finance), CPA(U), FCCA, CIPS, CTA and BCOM (Accounting). Innocent has also published various books on most topics in Accounting and Finance for Business and Professional Studies.
