Tax & International Structuring in Uganda

Essentials guide · Source-checked research64% of statements checked against a source23 checked against an official source14 checked against a secondary sourceChecked 2026-10-195 held back until checked against an official source9 topics include AI-written statements, not source-checkedNot yet professionally reviewed

• The standard corporate income tax rate is 30% (as at mid-2026).

  Resident companies with turnover of UGX 150 million or less fall under a presumptive tax regime unless they elect to be taxed at 30%; some professional and other services are excluded from that regime.PwC Worldwide Tax Summaries · checked 2026-10-19

• The standard VAT rate is 18% (as at mid-2026).

  Exports and some listed goods are zero-rated; financial services, education, medical services and some other supplies are exempt.PwC Worldwide Tax Summaries · checked 2026-10-19

• Withholding tax of 15% applies to dividends, interest, royalties and management fees paid to non-residents, subject to reduction under a tax treaty.

  Income Tax Act. Interest on government securities is taxed differently. Branch profits are taxed at 30% with a further 15% on repatriated branch profits. The source lists treaties with Denmark, India, Italy, Mauritius, the Netherlands, Norway, South Africa and the United Kingdom.PwC Worldwide Tax Summaries · checked 2026-10-19

• The Uganda Revenue Authority operates the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), and VAT-registered persons may claim input tax only on expenses supported by e-invoices or e-receipts.

  The PwC tax administration summary notes that the authority regularly reminds taxpayers to comply with EFRIS; the 2026/27 tax amendments (PwC, Uganda - Corporate - Significant developments) set penalties of the higher of UGX 200,000 or double the tax due for failing to issue e-receipts or e-invoices.PwC Worldwide Tax Summaries · checked 2026-10-19

• Uganda has transfer pricing rules requiring related-party transactions to be priced at arm's length.

  Sections 90 and 91 of the Income Tax Act and the transfer pricing regulations. A URA practice note of 14 May 2012 sets out the records to keep, and failure to provide them on request attracts a penal tax of UGX 50 million.PwC Worldwide Tax Summaries · checked 2026-10-19

• Employers must deduct PAYE from employees' pay and remit it to the Uganda Revenue Authority.

  The tax is normally borne by the employee; an employer that fails to withhold becomes liable for it. Employers also withhold local service tax for the local council.PwC Worldwide Tax Summaries · checked 2026-10-19

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