# How does withholding tax work in Uganda?

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

**Quick answer:** Designated agents withhold 6% on payments over UGX 1 million for goods and services. Dividends, interest and payments to non-residents carry 15%.

## Detailed explanation

## The rates

- **6%**: designated agents on payments over UGX 1 million; resident professional and management fees
- **15%**: dividends (10% from a listed company), interest, non-residents (unless a treaty lowers it)

## On the VAT-exclusive amount

On a VAT-inclusive invoice of UGX 26 million, WHT is UGX 1,322,034.

## Deadline

Return and payment by the **15th** of the following month.

## For the supplier

WHT suffered is a credit against your income tax. Finn records it as a tax asset.

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

## Real-world examples

### Supplier paid by a designated agent

A UGX 2 million invoice is paid UGX 1,880,000 and the 120,000 is a credit.

## Common mistakes to avoid

- Booking WHT suffered as an expense
- Computing WHT on the VAT-inclusive amount

## Frequently asked questions

### Can I get an exemption?

Yes, apply to URA for a withholding tax exemption.

## Practical tips

- Ask customers for withholding certificates every month

## 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)