URA to tax bank, mobile money agents

According to URA Commissioner General John Musinguzi, many banking and mobile money agents aren’t registered for taxes.

“In a bid to ensure tax compliance, we appeal to you to ensure that all commercial banks and mobile money financial service providers operating digital wallets register for taxes in accordance with the law and require them to regularly publish and update the lists of their banking and mobile money agents on their websites,” Musinguzi letter dated February 23, 2023, reads in part.

Musinguzi said their analysis of the banking and mobile money financial services has found that many agents aren’t registered for taxes.

Mobile money agents are supposed to earn a commission per transaction they make. The URA takes six percent on each commission transacted as withdrawing tax. Financial agencies collect the money and remit it to the tax collectors.

URA assistant commissioner for public corporate affairs Ibrahim Bbosa said some tax agents don’t have tax identification numbers (TIN).

He said they want to know the person the financial service provider is withdrawing tax from for proper accountability.

The MTN Mobile Money Chief Executive Officer, Richard Yego, promised to comply with the URA directive.

“We have been withdrawing. It is just we have not been attaching the TIN (Tax Identification Number),” Yego said adding that before it wasn’t a requirement.

MTN has over 200,000 agents across the country.