Starting or running a business?
Discover everything you need to know about doing business in your country from one of the Ye! country guides. We have kick-started a few and will be adding more. Check it out and stay tuned!
Tax
Which taxes does an entrepreneur have to pay? How much?
Please click here for an overview of all the taxes in Uganda. The taxes commonly applicable for entrepreneurs are
Corporate Income Tax (CIT)
Under the Income Tax Act, all companies in Uganda are subject to Corporate Income Tax (CIT) which is also known as business tax. It is a tax imposed on businesses incorporated in Uganda and which derive income from within Uganda. The CIT rate in Uganda is 30%.
Value Added Tax (VAT)
VAT is an indirect tax on the consumption of goods and services. A person that is registered for VAT is called vendor. VAT must be included in the selling price of every taxable supply of goods or services made by a vendor. The current standard VAT rate in Uganda is 18%.
Employees’ Tax [PAY-AS-YOU-EARN (PAYE)]
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration.
How do I pay for my tax?
Taxes are collected by self-assessment and by withholding tax on payments to residents and non-residents. As an Employer you are obliged to withhold and account for income tax on your employee remuneration and benefits (the PAYE system). The Uganda Revenue Authority is the central body mandated to assess, collect specified tax revenue, administer and enforce laws relating to such revenue. This statutory body conducts regular audits and investigations of taxpayers.
