URA Directs Ugandans to Declare Global Income as Foreign Asset Crackdown Begins URA has begun demanding full disclosure of offshore income and assets from Ugandan tax residents, marking a new era of global tax enforcement. With data now flowing in from more than 125 jurisdictions, non-compliant taxpayers face steep penalties, criminal exposure and urgent deadlines to regularise their affairs.

Uganda Revenue Authority (URA) has launched a sweeping enforcement campaign requiring all Ugandan tax residents with foreign bank accounts, property, or investments to immediately declare their worldwide income and assets, according to a new Tax Alert on Global Income Declaration issued by Grant Thornton.  

The development follows Uganda’s implementation of the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which now allows URA to automatically receive financial data on Ugandan residents from more than 125 countries.

These jurisdictions include Mauritius, the Cayman Islands, Jersey, US, UK and India.

With this global information-sharing system in place, Ugandans with undisclosed offshore accounts or assets can now be easily identified.

URA is sending notices to individuals and companies

According to Grant Thornton, URA has already begun sending formal notices to taxpayers whose foreign assets were flagged through the MAAC network.

The email notices inform recipients that URA has received information indicating they earned foreign income or gains, and that preliminary analysis shows one or more foreign financial accounts or assets associated with their name and Tax Identification Number have been reported.

Sources within URA, who asked not to be named because they are not authorised to speak to the media, confirmed that they had started asking taxpayers for file “voluntary disclosure”.

Taxpayers are typically given seven days to regularise their tax affairs before a formal investigation begins.

The notices, Grant Thornton says, are being issued to both individuals and entities holding foreign bank accounts, overseas real estate, offshore investments such as shares and bonds, cryptocurrencies, foreign business interests, trusts, pension accounts and inherited foreign property.

Anyone considered a Ugandan tax resident under Section 9 of the Income Tax Act is required to make these declarations, while Section 17 of the same Act requires residents to declare income earned from all geographical sources.

Foreign asset declaration is now mandatory

One of the major developments highlighted is URA’s introduction of a dedicated Foreign Asset Declaration (FAD) form.

Individuals are required to fill Form FAD-1001, while companies, partnerships and trusts must use Form FAD-1002.

Taxpayers must disclose detailed information about each foreign asset, including the country in which it is held, its value, the income it generates and whether any tax was paid in the foreign jurisdiction.

Supporting documentation, such as foreign bank statements, property ownership papers, loan agreements, investment certificates, and inheritance documents, must be attached.

After completing the form, taxpayers must upload it through the URA Touchpoint Portal and receive a confirmation ticket number as proof of submission.

Tax returns must be amended for the past three years

In addition to declaring foreign assets, taxpayers are required to amend their tax returns for the previous three years to include any previously undeclared foreign income.

This requirement is guided by Section 25(3) of the Tax Procedures Code Act.

In its Tax Alert on Global Income Declaration, compiled by Bruno Kalibbala, Bruno Amanya, Jasmine Shah, and Ankit Jangla of the Tax Advisory Team, Grant Thornton warned taxpayers to treat this process with seriousness, as delays or omissions may trigger deeper investigations.

Severe penalties for non-compliance

In its alert, Grant Thornton outlines significant consequences for failing to declare foreign-sourced income or providing false information.

These include the accumulation of interest at 2% per month on unpaid taxes, the imposition of penalties amounting to double the principal tax due, and exposure to criminal prosecution for tax evasion under the Tax Procedures Code Act.

Individuals who fail to comply also risk losing any amnesty benefits under the Voluntary Disclosure Programme and may face comprehensive audits into all their financial affairs.

These penalties apply regardless of whether the undeclared income comes from employment abroad, rental properties, dividends, pensions, crypto assets, business operations or inherited wealth.

Why is URA acting now?

Although the law has always required Ugandan residents to declare global income, enforcement was previously weak due to URA’s inability to verify offshore financial records.

Now, with MAAC fully implemented, URA has access to foreign banking and financial data, giving it the capacity to identify residents with hidden assets, track global business ownership and verify whether local declarations align with international information.

This marks a dramatic shift in Uganda’s tax compliance environment, signalling the beginning of a sustained tracking effort aimed at offshore wealth.

Experts urge immediate action

Grant Thornton says taxpayers with foreign assets must respond promptly by making timely declarations, which may help to secure waivers on interest, penalties or prosecution.

URA now has global visibility over the financial affairs of Ugandan tax residents. Any undeclared offshore assets or income will almost certainly be detected.

Taxpayers have a narrow window to comply, correct past omissions and avoid costly penalties or prosecution.