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Small business tax, explained and filed

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.

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The basics

What is presumptive tax?

Presumptive tax is a simplified income tax for small businesses. Instead of preparing full accounts to work out profit, the tax is based on your gross turnover for the year, using bands set in the Income Tax Act.

It's designed to keep things simple, but you still need a TIN and a return every year. Keeping basic records of your sales and purchases puts you on the lower rates.

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.

Who it applies to

Who can and can't use it

Can use it

Small businesses with turnover under UGX 150 million a year: shops, salons, restaurants, traders, small manufacturers and similar.

Can't use it, whatever the turnover

Medical, dental, architectural, engineering, accounting, legal and other professional services; construction; public entertainment; public utilities. These file full income tax returns.

Growing past UGX 150 million

You move to full income tax. Around UGX 300 million, VAT registration becomes required too.

Other taxes still apply

Presumptive tax only covers business income tax. Staff mean PAYE; rental income is taxed separately.

Source: Income Tax Act, section 4(5).

Records or no records

Why keeping records pays

Without records

You pay the flat amount for your turnover band, which is the higher option.

With records

You pay a lower amount, worked out from your actual turnover. Simple records of sales and purchases are enough, and they also protect you if URA asks questions.

Where it goes wrong

Where small businesses go wrong

  • Not filing because the tax seems small
  • Keeping no records, so you pay the higher rate
  • Using presumptive tax in a profession that can't
  • Crossing UGX 150 million without switching to full income tax
  • Forgetting PAYE once you take on staff

The cost of waiting: Unfiled years still count. URA can estimate what you owe, add penalties and interest, and block your Tax Clearance Certificate until it's cleared.

How we help

We keep your small business tax simple, and right

01

We check

We confirm whether presumptive tax applies to your business and which band you're in.

02

We file

Any missing years filed, and this year's return on time.

03

We watch your growth

We warn you before you cross UGX 150 million or need VAT, PAYE or EFRIS.

What you receive
  • A clear answer on whether presumptive tax applies to you
  • Every missing return filed, with URA receipts
  • Simple record-keeping guidance to stay on the lower rate
  • A warning before you reach the next threshold
What we need from you
  • Your TIN, or your national ID so we can register one
  • Your rough turnover for each year
  • Any sales and purchase records you keep
Your personalized quote

Priced to your situation — 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.

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Questions

Presumptive tax questions, by situation

Jump to: Getting started · Your business · Behind or contacted by URA · Working with us

Getting started

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.

Once a year, within six months after the tax year ends. The tax year runs 1 July to 30 June.

Yes. You register for one with URA using your national ID, and registration is free.

Your business

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.

Plan ahead. Once you reach it, you move to full income tax, and you'll need proper accounts. We prepare you before it happens.

Presumptive tax doesn't cover PAYE. If staff earn more than UGX 335,000 a month, you need to register for PAYE and file it monthly.

Rental income is taxed separately, under rental tax, with its own return.

Behind or contacted by URA

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.

Working with us

It depends on your turnover band and how many years need filing. Use the estimate above, and we confirm it in writing.

Yes. We help you set up simple records so you pay the lower rate from now on.

Not sure where you stand? Let's find out — before URA does it for you.

A 30-minute consultation tells you exactly where you stand, what it will cost to fix, and what happens if you wait. No obligation.

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