Presumptive tax in Uganda: the simple tax for small businesses, explained
If your business turns over less than UGX 150 million a year, you may pay presumptive tax: a simpler tax worked out from your turnover instead of your profit, and lower if you keep records. We check whether you qualify, register you, file each year and warn you before you outgrow it.
Presumptive tax in four facts
- Under UGX 10 million turnover a year: no presumptive tax to pay.
- UGX 10–150 million: tax is set by turnover band, and it's lower if you keep records.
- UGX 150 million or more: you move to full income tax, worked out on profit.
- Once a year: the return is due within six months after the tax year ends (the year runs 1 July to 30 June).
Sources: Income Tax Act (section 4(5) and Second Schedule); URA guidance. Checked October 2026.
What this costs you every month it waits
- Backdated estimated assessments once URA identifies the business
- Penalties and 2% monthly interest on unpaid amounts
- No TIN or tax history — blocking bank loans, tenders and supplier contracts
- Inability to get a Tax Clearance Certificate when a big opportunity appears
The cost of waiting: An unregistered business discovered by URA is assessed on estimates, backdated, with penalties and 2% monthly interest. What would have been a small annual presumptive payment becomes a multi-year demand.
Three steps. Zero guesswork.
We review
A short conversation about your turnover, sector and history. We check your TIN status and URA ledger and confirm which regime you belong in.
We file
We register or correct your registration, compute the right amounts, and file every return that is due — including backlog years.
We represent
If URA has already assessed or written to you, we respond, correct the figures and negotiate penalties down.
Two questions. Your figure — not a rate card.
Presumptive engagements are deliberately affordable — this is the entry point where compliance should cost less than the penalty for skipping it.
Licensed Tax Agent, registered with TARC under URA · Helping clients since 2012 · Rated 4.7 on Google
Free Small Business Tax Check
Five questions, one honest answer: what you should be paying, and what to do about any backlog.
- Reviewed personally by a licensed tax agent
- Plain-language answer — what you owe, what it costs to fix
- Reply within one business day (Mon–Fri)
Common questions
A simplified income tax for small businesses, based on gross turnover instead of profit, using bands set in the Income Tax Act.
Resident small businesses with turnover under UGX 150 million a year, except professional services, construction, public entertainment and utilities.
It depends on your turnover band, and it's lower if you keep records. Under UGX 10 million turnover, nothing is due. Tell us your turnover and we'll give you the exact figure.
Professional services can't use presumptive tax, even under UGX 150 million. You file a full income tax return based on profit.
Construction is excluded from presumptive tax. You file full income tax returns.
Yes. We file the missing years and bring you up to date. Coming forward first costs less than waiting for URA.
Send it to us. We check what URA is asking, file what's missing and reply before the deadline.
It depends on your turnover band and how many years need filing. Use the estimate above, and we confirm it in writing.