Question: What are factors considered when carrying out tax planning?
Answer: Tax planning is essentially the systematic analysis of the differing tax options you have which is aimed at the minimization your tax liability in the current and future tax periods.
If you own a business in Uganda, I would recommend that you convene probably in the middle of the Uganda government's financial year and implementing various strategies that will help you minimize the amount of taxes you will pay to Uganda Revenue Authority.
Some of the key areas/factors you should look at during your tax planning in Uganda would include:
The choice of accounting and inventory-valuation methods
The timing of equipment purchases,
The spreading of business income among family members and
The selection of tax-favored benefit plans and investments.
Furthermore, depending on the ownership structure of your Uganda business, you will find some areas of tax planning that are specific to your business form, whether sole proprietorship, partnership, or limited liability company.