Uganda Corporate Income Tax

Corporate rates and tax base

• Overview of corporate tax regime — Companies are taxed on chargeable income at a flat 30% rate, with presumptive/turnover regimes for small businesses and a minimum-style charge for persistent loss-makers. Mining and petroleum have separate regimes.
• Standard corporate income tax rate — 30 % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/taxes-on-corporate-income)
• Branch (permanent establishment) profit tax rate — 30%, plus a branch profits remittance tax of 15% on after-tax repatriated profits % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/branch-income)
• Small-business / presumptive tax (resident) — Applies where annual turnover is between UGX 10 million and UGX 150 million — fixed amounts and reduced turnover-based rates rather than 30% on profit (Income Tax Act (Cap 340), Second Schedule — https://taxsummaries.pwc.com/uganda/corporate/taxes-on-corporate-income)
• Corporate tax base — Gross income less allowable deductions (chargeable income); residents taxed on worldwide income, non-residents on Uganda-source income (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/income-determination)
• Tax loss carryforward — Assessed losses may be carried forward indefinitely; a 50% restriction applies to losses carried forward beyond 7 years of income (confirm current restriction) ((approx — confirm)) (Income Tax Act (Cap 340))

Withholding tax on dividends, interest and royalties

• Overview of withholding tax regime — Uganda applies withholding tax on a range of payments. Non-residents face a general 15% rate on passive income (subject to treaty relief), while resident WHT rates vary by payment type.
• WHT on dividends to non-residents — 15% (subject to reduction under an applicable double tax treaty) % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)
• WHT on dividends to resident persons — 15% standard; 10% on dividends from a listed company to individuals; 0% where a resident company holds 25%+ of the voting power of the payer % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)
• WHT on interest to non-residents — 15% (10% / 20% for certain government securities depending on maturity) % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)
• WHT on royalties to non-residents — 15% (subject to treaty reduction) % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)
• WHT on management/professional fees to non-residents — 15 % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)
• WHT on payments for goods/services by designated withholding agents — 6% on payments exceeding UGX 1,000,000 to a supplier by a designated withholding agent (creditable) % (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/withholding-taxes)

Corporate filing and payment

• Overview of filing and payment obligations — Companies file two provisional returns and a final self-assessment return per year of income, all electronically through the URA portal, with provisional tax paid in installments.
• Final self-assessment return deadline — Within 6 months after the end of the accounting year (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/tax-administration)
• First provisional tax payment — 50% of estimated tax by the end of the 6th month of the accounting year (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/tax-administration)
• Second provisional tax payment — Remaining estimated tax by the end of the 12th month of the accounting year (Income Tax Act (Cap 340) — https://taxsummaries.pwc.com/uganda/corporate/tax-administration)
• Interest on late tax payment — 2% per month (capped at the aggregate of principal and penal tax) % (Tax Procedures Code Act, 2014 — https://taxsummaries.pwc.com/uganda/corporate/tax-administration)