What is Presumptive Tax (Uganda)?
A simplified final tax on turnover that applies by default to a resident small business with annual turnover up to UGX 150 million. The business can elect out and be taxed on profit instead.
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Current Rate (Annual, on the year of income 1 July to 30 June.)
Nil up to UGX 10 million of turnover. Above that, a fixed amount without records or a small percentage of turnover with records, up to UGX 900,000 a year in the top band.
Example
A shop with UGX 40 million of turnover and proper records pays UGX 80,000 plus 0.5% of UGX 10 million, which is UGX 130,000. Without records the fixed amount is UGX 200,000.
How Presumptive Tax (Uganda) works in Uganda
Presumptive tax is final: there are no deductions for expenses or losses and no tax credits. The bands from URA's table for 2020/21 onwards run from UGX 10 to 30 million, 30 to 50 million, 50 to 80 million and 80 to 150 million.
Professionals (medical, dental, legal, accounting, engineering, architecture and other professional services), public entertainment, public utilities and construction cannot use it. Confirm the table for the year in question with URA before relying on a figure.
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.
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.
The Electronic Fiscal Receipting and Invoicing Solution run by URA. Every VAT-registered business, and non-VAT businesses in twelve gazetted sectors, must issue invoices and receipts through it.
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