Ugandan tax, translated.

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 250M	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	Effective 1 July 2026 (raised from 235,000)
Rental tax — individuals	12% of gross rent	Above the annual threshold
Rental tax — companies	30%	On chargeable rental income
Interest on unpaid tax	2% per month	Compounds until settled
WHT — professional fees (resident)	6%	15% for non-residents
WHT — dividends / interest	15%	10% for listed-company dividends to individuals
EFRIS non-compliance penalty	2× the tax due	Or the statutory minimum, whichever is higher — per transaction (TPCA s.93)

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
General pool (vehicles, furniture, equipment)	20%	Reducing balance
Industrial buildings	5%	Straight-line on construction cost
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 are waived if the principal is paid by 30 June 2027; tax outstanding at 30 June 2016 is fully waived.
• 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.

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.