Taxes in Uganda

The main taxes in Uganda include individual income tax, corporation tax, Pay As You Earn (PAYE), Value Added Tax (VAT), withholding tax, rental income tax, local excise duty, gaming tax, Digital Service Tax, stamp duty, customs duties and digital tax stamps. Kampala Capital City Authority and local governments may impose trading licences and Local Hotel Tax; these are separate local levies rather than central taxes administered within the main national tax system. The URA is responsible for taxpayer registration, assessments, collection, refunds and audits. The Ministry of Finance is responsible for tax policy and legislation. The Tax Appeals Tribunal hears tax appeals, followed by the High Court, Court of Appeal and Supreme Court where the applicable appeal process permits. The Income Tax Act, Value Added Tax Act, Excise Duty Act, Stamp Duty Act, Tax Procedures Code Act and East African Community Customs Management Act provide the principal legal framework. A person is generally resident in Uganda when they have a permanent home in Uganda, spend at least 183 days in any twelve-month period, or spend more than 122 days in each year of income and in the two preceding years. A Ugandan government employee serving abroad is also treated as resident. A company is generally resident when it is incorporated in Uganda, its management and control are in Uganda, or most of its operations take place in Uganda. Resident persons are generally taxed on worldwide income, while non-residents are generally taxed on Uganda-source income. Chargeable income normally means gross income less allowable deductions. A foreign tax credit is limited to the Uganda tax attributable to the relevant foreign-source income. From 1 July 2026, a resident individual's monthly chargeable income up to UGX 335,000 is taxed at nil. The next band up to UGX 410,000 is taxed at 20% of the amount above UGX 335,000; the band up to UGX 485,000 is taxed at UGX 15,000 plus 25% of the amount above UGX 410,000; and the band up to UGX 10,000,000 is taxed at UGX 33,750 plus 30% of the amount above UGX 485,000. Income above UGX 10,000,000 attracts an additional 10% on the excess. Non-residents do not receive the resident threshold and use separate rates. An employer usually withholds PAYE and files and pays it by the 15th day of the following month. An individual whose only income is employment from one employer and whose PAYE has been fully withheld generally does not need to file an individual annual return. A suitable resident small business may fall under presumptive tax, which uses turnover rather than the ordinary progressive income-tax calculation. The relevant annual turnover range is approximately UGX 10,000,000 to UGX 150,000,000, subject to sector exclusions and the applicable schedule. URA guidance states that turnover below UGX 10,000,000 does not attract presumptive tax. A company, whether resident or non-resident, generally pays corporation tax at 30% of chargeable income. Capital gains do not have a separate standalone tax; gains are generally dealt with as business or property income under the Income Tax Act. Assessed losses and capital allowances apply only as permitted by that Act. For an individual, rental income tax is 12% of annual gross rent less UGX 2,820,000, with no other individual deductions under the URA guide. A company generally treats rental income under corporation-tax rules and may claim allowable deductions. A designated payer normally withholds 6% on rent above UGX 1,000,000. Commercial rental supplies may also fall within VAT when the VAT requirements are met. VAT has a standard rate of 18%, a zero rate of 0% for zero-rated supplies and no VAT on exempt supplies. VAT registration generally applies when taxable turnover reaches UGX 150,000,000 in a year or UGX 37,500,000 in three consecutive calendar months. VAT follows calendar months, and the return and payment are generally due by the 15th of the following month. A VAT-registered taxpayer must use the Electronic Fiscal Receipting and Invoicing System (EFRIS), which issues or records electronic invoices and receipts. Missing EFRIS documentation can prevent an input-tax credit or an income-tax deduction. Withholding tax is collected at source by a designated agent or another payer required by law. A common rate for resident goods or services is 6% where the aggregate payment exceeds UGX 1,000,000, while professional fees have no threshold. Other categories can attract 10% or 15%. Depending on the income type, withheld tax is either final or creditable against the recipient's final liability. Withholding-tax returns and payments are generally due by the 15th of the following month. From 1 July 2026, a designated agent does not withhold VAT when the supplier provides an EFRIS invoice or receipt. A taxpayer needs a TIN for tax registration, EFRIS, imports and exports, refunds, tax clearance and certain asset transactions. The TIN is a free ten-digit number obtained through the URA online portal. A tax agent is optional; an agent who provides regulated tax-agent services must be licensed through the Tax Agents Registration Committee. EFRIS is mandatory for VAT taxpayers and, from 1 July 2025, also covers gazetted sectors such as manufacturing, construction, wholesale and retail, transport and storage, information technology and communications, real estate, professional and technical services, and arts, entertainment and recreation. Passenger land transport is an exception within the listed transport scope. Small businesses with annual turnover below UGX 10,000,000, rental income below UGX 2,820,000 per year and non-resident digital-service providers are among the stated exemptions. The taxpayer bears the cost of an EFRIS device or integration. Local excise duty applies to specified goods and services at product- or service-specific rates. Returns and payments for services are generally due by the 15th of the following month and for goods by the 21st. Digital Tax Stamps provide digital tracking and tracing for certain excisable goods. Gaming and pool-betting activities have separate tax rules. A non-resident provider of digital services to a customer in Uganda may owe Digital Service Tax at 5% of gross Uganda earnings and generally files quarterly. Such a provider has no EFRIS mandate under the stated rule, although VAT treatment depends on the supply and customer status. Stamp duty applies to instruments listed in Schedule 2 of the Stamp Duty Act rather than to every transaction above a general threshold. The person drawing, making or executing the instrument generally pays it. Payment is usually due within 45 days of execution or within 30 days of receipt, depending on the instrument. A land transfer attracts stamp duty at 1.5% of government-valued land. Non-payment does not automatically make the instrument void, but it can create problems when relying on the instrument as evidence in a commercial court and can lead to penalties or an offence under the Act. An individual generally files a provisional return within three months after the beginning of the year of income, while a non-individual generally files within six months. The final income-tax return and payment are generally due within six months after the end of the year of income. VAT, PAYE and withholding-tax deadlines normally fall on the 15th of the following month, and local excise duty on goods on the 21st. Returns are filed online through a URA TIN account. According to URA guidance, late filing can attract UGX 200,000 or 2% of the period's tax liability, whichever is higher. Tax records should generally be retained for at least five years, and audited financial statements are required where turnover reaches UGX 500,000,000. A Tax Clearance Certificate demonstrates tax compliance. It is relevant, among other situations, for government supply or tender work, passenger or freight transport, warehousing, clearing and forwarding, and outward transfers above UGX 50,000,000. The taxpayer generally needs an up-to-date profile, all required returns, returns for associated persons where the applicant is a non-individual, and payment of taxes or a payment memorandum of understanding. Taxpayers have rights to fair treatment, finality, privacy and confidentiality, information, professional service, representation, objections and appeals, and refunds. They must register when required, quote their TIN, file accurate returns on time, pay tax, keep records, update their details, avoid evasion and cooperate with authorised URA staff. An objection to an assessment is generally filed within 45 days after the assessment notice through the URA portal or office, with reasons and supporting evidence. The deadline may be extended in suitable cases. An appeal to the Tax Appeals Tribunal is generally filed within 30 days after the objection decision. The appellant generally pays 30% of the assessed tax or the undisputed tax, whichever is higher, before the Tribunal appeal. An appeal to the High Court is generally filed within 30 days and concerns legal questions. Alternative dispute resolution may also be available. Refunds can arise from overpayments, excess provisional or withholding tax, VAT input tax exceeding output tax, exports and zero-rated supplies, bad debts, loss of stock, or a court or Tribunal decision. An ordinary VAT refund claim generally applies above UGX 5,000,000, while an excess below UGX 5,000,000 is generally offset against other tax. A claim is generally made within three years after the relevant tax period. The stated VAT refund target is 30 days; unjustified delay after that period can attract simple interest of 2% per month. Double-tax agreements can allocate taxing rights between Uganda and another country and may limit source-country withholding tax. URA publishes agreements including those with India, South Africa, Mauritius, Denmark, the Netherlands, Norway and the United Kingdom. A foreign tax credit generally requires foreign income tax to have actually been paid. Automatic exchange of information began in September 2025 and covers 125 countries according to URA. Voluntary disclosure is available for undisclosed foreign income or assets of resident persons under the applicable rules. Imports and exports follow the customs framework under the East African Community Customs Management Act and the East African Community Single Customs Territory. Tax amounts, rates and thresholds can change through Finance Acts, so the applicable rule and filing period should be checked before filing or paying.