Income Tax Rates in Uganda for 2023-2024

Uganda implements the Uganda electronic Single Window (UeSW), a facility for the electronic submission of international trade documents and information to government regulatory agencies. This facility allows for submissions such as permit applications and customs declarations and is available for use by all clearing agents, licensing officers and traders. The taxation system in Uganda is administered by the official tax body, the Uganda Revenue Authority.

What is income tax? These refer to payments made by individuals or businesses to the government based on their income. The payments may be derived from employment, pensions, investments, business revenue or other income. 

How is income tax calculated? The Income Tax Act, Cap. 340 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding tax brackets and tax rates, for effective tax planning and to remain compliant with Ugandan tax laws.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates for residents and non-residents
• corporate income tax (CIT) rates 
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Uganda

Personal Income Tax (PIT) Rates in Uganda

A taxpayer is required to apply for a taxpayer identification number (TIN) for tax administration purposes. Individuals apply for an individual TIN. Companies, partnerships, international organizations, government entities, local authorities, and other entity types, apply for a non-individual TIN.

Personal Income Tax for Resident Individuals

Personal Income Tax for Non-Resident Individuals

Personal Income Tax Due Dates

Corporate Income Tax Rates in Uganda 2023-2024

The income tax rate applicable to companies in Uganda is 30%, with the exception of resident companies whose turnover does not exceed UGX 150 million. In these cases, presumptive tax applies.

Corporate Income Tax Due Dates

Capital Gains Tax in Uganda

There is no separate capital gains tax (CGT) in Uganda. Capital gains are included in and taxed together with the business income at a rate of 30%.

Withholding Tax Rates for Residents and Non-Residents in Uganda

Withholding tax (WHT) applies to individuals and businesses in Uganda. An individual who is also an employer is required to withhold tax on payments of employment income made to employees. An individual who receives different types of payments, such as dividends, interest or royalties, may incur varying WHT rates.

Varying WHT rates are imposed on non-resident corporations for income such as dividends, interest, royalties, rent, natural resource payments or management charges. However, a taxpayer may benefit from the provision of double taxation treaties that Uganda may have with other countries.

Value-Added Tax (VAT) Rates in Uganda

All VAT-registered taxpayers are required to enrol in the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) which enables e-invoices and e-receipts and direct electronic communication with business transaction systems.