URA Tax Integration for Small Businesses: EFRIS to Boost Revenue Compliance in Uganda
- Afri Careers
- 3 days ago
- 2 min read
Why URA’s Tax Integration Drive is a Game-Changer for SMEs
The Uganda Revenue Authority (URA) is stepping up efforts to bring small and informal businesses into the formal tax system, in a strategic move to strengthen domestic revenue collection and reduce dependency on foreign aid.
At the heart of this push is the Electronic Fiscal Receipting and Invoicing System (EFRIS)—a cutting-edge tool that enables URA to capture real-time business transaction data. This not only boosts transparency but also closes loopholes that allowed businesses to under-declare income.
Commissioner General John Musinguzi, writing in his weekly media column, emphasized the importance of this integration, saying:
“Integration enables URA to collect accurate, real-time data on business transactions, thereby widening the tax net and improving compliance.”
Digital Tools Driving Compliance and Accountability
Since 2021, URA has partnered with Global Voices Group (GVG) to improve its technological capabilities in tax monitoring. GVG’s platform allows URA to independently verify tax declarations—shifting away from reliance on self-reporting, which was often abused by evaders.
This collaboration has empowered URA to detect discrepancies and enforce compliance across various sectors, including cleaning services, trade, and professional services.
All businesses—big or small—are now required to:
Register for Taxpayer Identification Numbers (TINs)
Fulfill VAT obligations if their turnover exceeds statutory thresholds
File monthly PAYE returns for their employees
Small Businesses: From Under-Taxed to Key Revenue Contributors
Historically, small and medium enterprises (SMEs) have been overlooked in Uganda’s tax ecosystem. But with this integration drive, URA views them as essential players in its ambitious goal to collect over UGX 29 trillion in the 2024/2025 financial year.
“With improved digital compliance, small businesses are now key contributors to our domestic revenue effort,” a senior URA official noted.“Bringing them into the system helps ensure all economic sectors share the tax burden fairly.”
Overcoming Challenges Through Education and Support
While some SMEs have voiced concerns over the financial and technical implications of joining the formal tax system, URA insists that the long-term benefits far outweigh the short-term costs.
These benefits include:
Formalization of the business
Improved record-keeping
Better access to credit and financial services
To ease the transition, URA has launched widespread taxpayer education programs to guide businesses through EFRIS adoption and digital compliance.
The integration of small businesses is more than a compliance measure—it's a cornerstone of Uganda’s domestic resource mobilization strategy. By embracing digital tools and fostering accountability, URA is setting the stage for a more inclusive, transparent, and efficient tax system.
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