By Mulengera Reporters
The Uganda Revenue Authority (URA) has issued a firm reminder that private schools are businesses and must pay their fair share of taxes, just like any other enterprise.
During a heated engagement with head teachers and private school owners in Busia and Namayingo Districts, URA officials exposed compliance gaps in the education sector, warning that failure to register and remit taxes could lead to serious financial consequences.
Wilson Katumba, Station Head of Busia Domestic Taxes Office, revealed that some schools were operating illegally, unregistered, underreporting earnings, and dodging Pay As You Earn (PAYE) obligations.
“Some schools are not registered and have been submitting inaccurate details. Others are operating as businesses but failing to comply with PAYE,” Katumba said, stressing that URA is tightening its grip on tax defaulters.
URA’s Godfrey Bankyaye cautioned school owners that all employees, whether their salaries meet the PAYE threshold or not, must be declared in tax returns, warning that undeclared salaries could be disallowed as business expenses.
James Maloba, URA’s Regional Manager for Eastern Uganda, further emphasized that even allowances paid by Parent Teacher Associations (PTAs) are taxable, urging school administrators to make timely tax returns to avoid penalties and interest.
The meeting also covered taxpayer rights, filing procedures, penalties for non-compliance, and the objections process. Schools with pending tax arrears were encouraged to regularize their status or face enforcement measures. With URA tightening its surveillance on tax-dodging institutions, private schools are now on notice, to comply or pay the price. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
