What is Corporate Income Tax (Uganda)?
The income tax a Ugandan company pays on its chargeable income, which is gross income less allowable deductions. The rate is 30% for resident and non-resident companies.
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Current Rate (Year of income 1 July to 30 June. The final return is due six months after year-end, so 31 December for a 30 June year-end.)
30% of chargeable income.
Example
A company with UGX 200 million of chargeable income owes UGX 60 million of income tax, less provisional tax and withholding tax credits already paid.
How Corporate Income Tax (Uganda) works in Uganda
Corporate income tax is run by the Uganda Revenue Authority (URA). A company files a provisional return and pays provisional tax in two instalments during the year, then files the final return within six months after the year ends and pays any balance.
Withholding tax deducted by customers and provisional tax already paid are credits against the final figure. Some sectors, such as petroleum, have their own regimes, so check the sector before treating 30% as final.
Finn gives a rough figure from the books and lists the tax adjustments it has not made, so your accountant can finish the computation.
Related terms
Income tax paid in advance during the year on an estimate of the year's chargeable income. Companies pay it in two instalments and individuals in four.
Income tax deducted at source by the payer and paid to URA on the payee's behalf. The payee claims it as a credit against its own tax.
The Tax Identification Number: a 10-digit number URA issues free of charge to every taxpayer, used for all taxes.
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