# What is Withholding Tax (Uganda)?

Country: 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.

## 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.

Source: https://ura.go.ug/storage/2024/12/Withholding-Tax-FY-2024-25-1.pdf

## Related terms

- [Corporate Income Tax (Uganda)](https://accounts-os.com/ug/glossary/corporate-income-tax-uganda)
- [PAYE (Uganda)](https://accounts-os.com/ug/glossary/paye-uganda)
- [VAT (Uganda)](https://accounts-os.com/ug/glossary/vat-uganda)