What is Withholding Tax (Uganda)?
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.
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Current Rate (Monthly. The return and the payment are due by the 15th of the following month.)
6% on payments over UGX 1 million by designated agents and on resident professional and management fees; 15% on dividends (10% from a listed company), interest and payments to non-residents.
Example
A designated agent pays a supplier a VAT-inclusive invoice of UGX 26 million. WHT is 6% of the VAT-exclusive amount, UGX 1,322,034.
How Withholding Tax (Uganda) works in Uganda
The Minister of Finance designates withholding agents. A supplier can apply to URA for a withholding tax exemption. If an agent fails to withhold, it is personally liable for the tax.
Finn records WHT suffered as a tax credit asset, not an expense, so it reduces the final income tax bill.
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.
Pay As You Earn: the income tax an employer withholds from employees' pay each month and pays to URA.
Value Added Tax on taxable supplies of goods and services in Uganda. The standard rate is 18%, with zero-rated and exempt supplies.
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