Checked October 2026 · Plain language
Ugandan tax, translated.
The current rates, thresholds and deadlines that decide what you owe, explained plainly. Checked against the 2026 Amendment Acts, in force from 1 July 2026.
Headline rates & thresholds (2026/27)
| Item | Rate / value | Notes |
|---|---|---|
| Corporate income tax | 30% | On chargeable income of resident companies |
| VAT standard rate | 18% | On taxable supplies |
| VAT registration threshold | UGX 300M | Annual turnover — effective 1 July 2026 (raised from 150M) |
| Presumptive regime ceiling | UGX 150M | Simplified small-business tax below this turnover |
| PAYE tax-free threshold | UGX 335,000/month | From 1 July 2026 (was 235,000). A new 25% band applies between UGX 410,000 and 485,000 a month |
| Rental tax — individuals | 12% of gross rent | On rent above UGX 2.82M a year. Landlords may now file provisional returns monthly |
| Rental tax — companies | 30% | On chargeable rental income |
| Interest on unpaid tax | 2% per month | On the unpaid amount, from the due date until it's paid (Income Tax Act s.148) |
| WHT — professional fees (resident) | 6% | 15% for non-residents |
| WHT — dividends / interest | 15% | 10% for listed-company dividends to individuals |
| EFRIS penalty (no e-invoice, or not using the system) | 2× the tax due | Or UGX 200,000 if higher, per transaction, from 1 July 2026 (TPCA s.93) |
| VAT withholding | Not applied | When the buyer receives an EFRIS e-invoice or e-receipt, from 1 July 2026 |
| WHT — telecom commissions | 10% | On commission for telecommunication retail, mobile network or mobile money services. Not a new rate: the 2026 Act restates it |
Working with these numbers? Two free tools: the VAT supplier calculator (what unregistered suppliers really cost you) and the withholding tax calculator (every WHT category, computed).
Capital allowances (what you can deduct for assets)
| Asset class | Rate | Method |
|---|---|---|
| Computers & data equipment | 40% | Reducing balance |
| Plant & machinery (farming/manufacturing/mining) | 30% | Reducing balance |
| Everything else (vehicles, furniture, equipment) | 20% | Reducing balance |
| Industrial buildings | 5% | Straight-line on construction cost |
| Vehicle cost ceiling | Allowances on a car are limited to a cost of UGX 60M | |
| Initial allowance | Abolished from 1 July 2023 — do not claim | |
Rules that changed recently (and still catch people)
- Interest deduction cap: 30% of tax-EBITDA for group members (banks/insurers excluded). The old 1.5:1 debt-equity test no longer applies.
- Loss carry-forward: after seven consecutive loss years, only 50% of accumulated losses carry forward (from 1 July 2023).
- Penalty waiver window: interest & penalties on principal outstanding at 30 June 2025 may be waived if the principal is paid by 30 June 2027; tax outstanding at 30 June 2016 may be waived in full.
- Supplier TIN rule: single transactions of UGX 5M+ need the supplier's TIN, or the expense is disallowed.
- Transfer pricing: documentation required at UGX 500M+ of related-party transactions; non-production penalty UGX 50M.
Deadlines that start when URA writes to you
| When this happens | You have | Next step |
|---|---|---|
| URA issues an assessment | 45 days | Lodge an objection with your evidence |
| You've objected | URA has 90 days | If URA doesn't decide in time, the objection may be treated as allowed |
| URA decides your objection | 7 days for ADR, 30 days for the Tribunal | Before the Tribunal hears it, 30% of the tax assessed is paid and held |
| Customs decision (classification, valuation) | 30 days | Apply for review, then 45 days to go to the Tribunal |
Put in your date and see your exact deadlines: objection and ADR deadline calculator.
New to Uganda, or with money abroad
- Residence: you're resident for tax with a permanent home here, 183 days or more in any 12 months, or an average of more than 122 days a year over three years.
- Newcomers: a non-citizen resident whose time in Uganda adds up to two years or less pays no Ugandan tax on income from abroad, and nor does their immediate family. Tax for Visitors & Expats.
- Foreign accounts: since September 2025 URA exchanges financial account information with more than 120 countries. Declaring before URA raises it costs far less.
- Start-ups: a business set up by a citizen after 1 July 2025, with registered capital of UGX 500M or less, can be exempt from income tax for 3 years, if every condition is kept. Tax Planning.
Key terms, plainly
- TIN — Taxpayer Identification Number: your identity at URA. Everything filed, paid or owed hangs off it.
- TCC — Tax Clearance Certificate: the document URA issues to prove you're compliant. Needed for tenders, many bank facilities and contracts.
- EFRIS — URA's electronic invoicing system. VAT-registered businesses must issue e-invoices/e-receipts through it.
- Presumptive tax — the simplified small-business regime (turnover ≤ UGX 150M): schedule-based amounts instead of full accounts.
- Provisional tax — estimated income tax paid in instalments during the year, trued-up at the final return.
- Estimated assessment — URA's own figure for what you owe when you haven't filed. Usually high; always challengeable with evidence, within deadlines.
- Objection / ADR / TAT — the dispute ladder: formal objection to URA, then Alternative Dispute Resolution, then the Tax Appeals Tribunal, then courts. Every rung has strict deadlines.
- Agency notice — URA's power to collect your tax debt directly from third parties: your bank, your tenants, your debtors.
A practitioner's caution: this page is general information, checked in October 2026 against current law. Rates and rules change every Finance Act — before any filing or dispute, verify the current position or ask us to. That check is free; the wrong rate isn't.