# How does provisional tax work in Uganda?

Last updated: 25 October 2026
Country: Uganda
Category: tax

**Quick answer:** Provisional tax is income tax paid in advance on an estimate. Companies pay two instalments at months 6 and 12; individuals pay four at months 3, 6, 9 and 12.

## Detailed explanation

## Companies

File the provisional return by the last day of the **sixth month** and pay **half** of the estimated tax then and the rest by the end of the **twelfth month**.

## Individuals

Sole proprietors and partners file by the end of the **third month** and pay **four** instalments.

## Getting the estimate right

If the estimate is below **90%** of the actual chargeable income, URA charges **20%** of the difference in tax. Unpaid tax carries interest of **2% a month**.

## Who is excluded

Presumptive taxpayers do not pay provisional tax.

Source: https://ura.go.ug/en/ask-ura-commissioner-general-30/

## Real-world examples

### Company on a June year-end

Pays half the estimate by 31 December and half by 30 June.

### Sole proprietor

Files by 30 September and pays on 30 September, 31 December, 31 March and 30 June.

## Common mistakes to avoid

- Lowballing the estimate
- Missing the second instalment

## Frequently asked questions

### Can I change my estimate?

Yes, during the year.

### What if I underestimate?

A 20% penalty applies below 90% of the actual figure.

## Practical tips

- Use management accounts at month 5 to set the estimate
- Revise the estimate if trading changes

## Related questions

- [What is the corporate income tax rate in Uganda?](https://accounts-os.com/ug/questions/what-is-the-corporate-tax-rate-in-uganda)
- [Who can use presumptive tax in Uganda?](https://accounts-os.com/ug/questions/who-can-use-presumptive-tax-in-uganda)