Monthly Withholding Tax Return
A withholding agent files a return of tax withheld from payments to suppliers and pays it to URA. The withholding agent deducts the tax when it pays the supplier and pays it to URA with the return. The supplier then credits the tax withheld in its own income tax return.
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AccountsOS tracks your tax and filing deadlines, keeps the books and handles invoicing for Uganda businesses, in plain English. Ask Finn about yours, no signup needed.
Who this applies to
- Designated withholding agents paying over UGX 1 million for goods and services
- Anyone paying dividends, interest, professional fees or payments to non-residents that carry withholding tax
What to file
The return listing payees, TINs, amounts and tax withheld: 6% for designated agents and resident professional fees, 15% for dividends, interest and non-residents.
How to file
Online through the URA portal. AccountsOS does not submit to the Uganda Revenue Authority. You or your accountant file on the URA portal. Finn keeps the date on your calendar, reminds you before it falls due and shows the figures from the books your accountant needs.
Payment due
The tax withheld is paid by the same 15th.
Penalties for missing this deadline
An agent that fails to withhold is personally liable for the tax. Late filing: the higher of 2% of the tax or UGX 200,000 for each month late. Late payment: interest of 2% a month.
Filing checklist
- List payments subject to withholding
- Compute WHT on the VAT-exclusive amount
- Check suppliers' exemption certificates
- File and pay by the 15th
- Keep the return receipt with the month's payment records
Documents you'll need
- Payment listing
- Supplier TINs and exemption certificates
- Invoices for each payment with withholding
- Records of the tax withheld given to each supplier
Common mistakes to avoid
- Computing 6% on the VAT-inclusive amount
- Withholding from an exempt supplier
- Not giving the supplier a record of the tax withheld
- Missing the return in a month with one large payment
- Using the wrong rate for a non-resident supplier
- Withholding but paying the tax over late
Never miss a Uganda deadline
AccountsOS tracks every Uganda Revenue Authority (URA) and Uganda Registration Services Bureau (URSB) deadline and reminds you weeks ahead.
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