Who can use presumptive tax in Uganda?
A resident taxpayer with annual turnover up to UGX 150 million pays presumptive tax by default, a final tax on turnover, and can elect out to be taxed on profit. Turnover up to UGX 10 million pays nil.
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Detailed Explanation
## Eligibility
Resident taxpayers with annual turnover up to UGX 150 million. Presumptive tax is the default for them, and they can elect out in writing, by the return due date, to be taxed on profit instead. Professionals (medical, dental, legal, accounting, engineering, architecture), public entertainment, utilities and construction are excluded.
## The bands
| Turnover (UGX) | Without records | With records | |---|---|---| | Up to 10m | Nil | Nil | | 10m to 30m | 80,000 | 0.4% above 10m | | 30m to 50m | 200,000 | 80,000 + 0.5% above 30m | | 50m to 80m | 400,000 | 180,000 + 0.6% above 50m | | 80m to 150m | 900,000 | 360,000 + 0.7% above 80m |
## It is final
No deductions, no credits, no provisional tax. Confirm the table for your year with URA.
Source: https://ura.go.ug/wp-content/uploads/2025/02/tn2024-1-Uganda-Revenue-Authority-presumptive-tax-data-1.pdf
Real-World Examples
Retail shop
UGX 40 million turnover with records pays UGX 130,000.
Law practice
Cannot use presumptive tax, whatever its turnover.
Common Mistakes to Avoid
- Filing as a presumptive taxpayer while in an excluded profession
- Losing records and paying the higher fixed amount
Frequently Asked Questions
Is it final?
Yes. No deductions or credits.
Do I pay provisional tax?
No.
Practical Tips
- Keep records: the with-records rate is usually lower
- Check the URA small business page each year
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