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The Ultimate Guide to Business Taxes in Africa: What You Need to Know - Uganda

Updated: Mar 28

Are you a business owner operating in Africa? If so, you know that paying taxes is an essential part of running your business. Business taxes can be complicated and overwhelming, but don't have to be. Whether you are a new business owner or an experienced one, this post will provide you with valuable summarized insights on business taxes and keep your business running smoothly. Below is a breakdown per country so grab a cup of coffee and let's dive in!


From small enterprises to large corporations, all businesses in Uganda are required to comply with the tax laws and regulations set forth by the Uganda Revenue Authority (URA). Below is a breakdown of what you need to know as a business owner to stay compliant and avoid penalties. So, let's get started!

Tax/Due

Description

Who Pays

How to Submit

Online Form

PDF Form

Pay As You Earn (PAYE)

​Tax deducted from employment income of employees and remitted to URA by employers on a monthly basis

​Employers

Submit form online at URA's eTax Portal or in person at any URA office



PAYE_Return
.xls
Download XLS • 2.71MB

Value Added Tax (VAT)

Tax charged on taxable supplies of goods and services made by VAT-registered businesses

VAT-registered businesses

Submit form online at URA's eTax Portal or in person at any URA office



VAT Return
.xls
Download XLS • 346KB


Monthly VAT Return Form
.pdf
Download PDF • 544KB


Income Tax Return

Tax on business income. Tax rate varies depending on income type and tax bracket.

All businesses

Submit form online at URA's eTax Portal or in person at any URA office



Income Tax Return
.xls
Download XLS • 1.18MB


Income Tax Return
.pdf
Download PDF • 1.72MB

Excise Duty

Tax charged on specific goods and services like alcohol, tobacco, and petroleum products

Manufacturers, importers, and suppliers of excisable goods and services

Submit form online at URA's eTax Portal or in person at any URA office



Local_Excise_Duty_Return
.xls
Download XLS • 1.78MB


Excise Duty Return
.pdf
Download PDF • 565KB

Rental Tax

Tax charged on rental income from commercial and residential properties

Property owners and managers

Submit form online at URA's eTax Portal or in person at any URA office



Rental Tax Return
.xls
Download XLS • 377KB


Rental Tax Return
.pdf
Download PDF • 954KB

Withholding Tax

Tax deducted from payments made to non-residents for services rendered in Uganda

Businesses making payments to non-residents

Submit form online at URA's eTax Portal or in person at any URA office



Withholding Tax Return
.xls
Download XLS • 412KB

Local Service Tax

Tax charged on all persons earning income within the jurisdiction of KCCA

Individuals and businesses earning income within KCCA jurisdiction

Pay at any URA office or through mobile money

Trading License

Fee charged on businesses operating within KCCA jurisdiction

All businesses operating within KCCA jurisdiction

Pay online on KCCA's Portal or in person at any KCCA office


Trading Licence
.pdf
Download PDF • 646KB

Filing Deadlines

Tax Type

Filing Frequency

Filing Deadline

Annual Return Deadline

Who is required to file

Penalties for late/non-filing

Exceptions

Value Added Tax (VAT)

Monthly

15th of following month

31st January of following year

VAT-registered businesses

Penalty of 2% of tax due per month or part of the month, subject to a maximum of 100% of tax due

Businesses with turnover below UGX 150 million per year may apply for exemption

Pay-As-You-Earn (PAYE)

Monthly

15th of following month

N/A

Employers with salaried employees

Penalty of 1% per month or part of the month on the outstanding tax balance

N/A

Corporation Tax

Annually

6 months after accounting period end date

N/A

Companies and other corporate entities

Penalty of 1% per month or part of the month on the outstanding tax balance

N/A

Withholding Tax

Monthly

15th of following month

N/A

Businesses making payments subject to withholding tax

Penalty of 2% of tax due per month or part of the month, subject to a maximum of 100% of tax due

N/A

Excise Duty

Monthly

15th of following month

N/A

Businesses engaged in the manufacture, import or sale of excisable goods

Penalty of 2% of tax due per month or part of the month, subject to a maximum of 100% of tax due

N/A

KCCA Trade License

Annually

31st January of each year

N/A

Businesses operating within KCCA jurisdiction

Penalty of 10% of the annual fee plus UGX 500,000 for late renewal

N/A

NSSF Contributions

Monthly

15th of following month

N/A

Employers with salaried employees

Penalty of 5% of the total contribution due plus 1% for each month or part of the month that the contribution remains unpaid

Employers with less than 5 employees are exempt

E-invoicing/E-receipting

Monthly

15th of following month

N/A

Businesses required to issue e-invoices and e-receipts

Penalty of UGX 500,000 for non-compliance

N/A

Company Registration Renewal

Annually

Within 30 days of anniversary of registration date

N/A

All registered businesses

Penalty of UGX 50,000 plus UGX 20,000 per month or part of the month that the renewal is late

N/A

URSB Annual Return Filing

Annually

31st January of each year

N/A

All registered businesses

Penalty of UGX 400,000 for late filing

N/A

URA eFRIS (Electronic Fiscal Receipting and Invoicing System)

Is an online platform introduced by the URA to monitor sales transactions and automate the generation of receipts and invoices for businesses in Uganda. It is intended to help businesses improve their accounting processes and make it easier for them to comply with tax regulations.

Note that businesses that have a turnover of less than UGX 50 million per year are not required to register for e-invoicing and e-receipting. However, they are encouraged to do so as it can help them improve their accounting processes and make it easier to comply with tax regulations.

The requirements and registration process for e-invoicing and e-receipting with URA's eFRIS system:

  1. Obtain a Tax Identification Number (TIN) - To register for e-invoicing and e-receipting, businesses must have a TIN.

  2. Register for eFRIS - Businesses must register for the eFRIS system by visiting the URA website and creating an account.

  3. Obtain a Digital Signature Certificate (DSC) - Businesses must obtain a DSC from a URA-approved service provider. The DSC is used to sign electronic invoices and receipts, ensuring their authenticity and integrity.

  4. Integrate with accounting software (optional) - Businesses can integrate their accounting software with the eFRIS system to enable them to generate e-invoices and e-receipts directly from their accounting systems.

  5. Test the system - Before using the eFRIS system for actual transactions, businesses must test the system to ensure that it is working correctly.

  6. Start using the system - Once the business has successfully completed the registration process and obtained a DSC, they can start using the eFRIS system to generate and submit e-invoices and e-receipts to URA.

With the right mindset and approach, you can turn taxes from a burden into an opportunity to grow and thrive as a business owner. Paying taxes is an essential part of running a business, but it doesn't have to be a source of stress or frustration. With WABZ, businesses of all sizes can enjoy the benefits of efficient bookkeeping, including better cash flow management, improved decision-making, and reduced paper-work come tax season.

Coming soon in our Africa series

Nigeria

Kenya

Ghana

Tanzania

South Africa

Zimbabwe









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