What is Provisional Tax (Uganda)?
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.
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Current Rate (Companies: return by the end of month 6, instalments at months 6 and 12. Individuals: return by the end of month 3, instalments at months 3, 6, 9 and 12.)
Based on your estimate. Understating below 90% of the actual income carries a 20% penalty on the difference.
Example
A company with a 30 June year-end estimating UGX 30 million of tax pays UGX 15 million by 31 December and UGX 15 million by 30 June.
How Provisional Tax (Uganda) works in Uganda
The provisional return sets out your estimate. You can revise it during the year if trading changes. Presumptive taxpayers do not pay provisional tax.
If the estimate is too low, URA charges 20% of the difference between the tax on 90% of the actual chargeable income and the tax on your estimate. Unpaid tax also carries interest of 2% a month.
Related terms
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.
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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