Free invoice generator and tax tools for Uganda

Almost every tax a Ugandan small business pays goes to the Uganda Revenue Authority (URA). Companies, associations and NGOs pay corporation tax at 30% of chargeable income. Resident businesses whose turnover is between UGX 10 million and UGX 150 million normally pay presumptive tax, a fixed amount set by turnover band, instead of tax on profit. VAT is charged at 18%.

If you employ staff you run two monthly deductions. PAYE income tax is withheld and paid to URA. Social security goes to the National Social Security Fund (NSSF): 5% from the worker plus 10% from you. Since the NSSF (Amendment) Act 2022, every employer must register with NSSF, however few people it employs.

The latest reform is the package of seven tax amendment Acts in force from 1 July 2026. They raised the PAYE tax-free band to UGX 335,000 a month and lifted gaming tax from 20% to 30%. Buyers who withhold VAT no longer deduct 6% when you issue an EFRIS e-invoice. Tax debts outstanding at 30 June 2016 were written off, and interest and penalties outstanding at 30 June 2025 are waived if you pay the principal by 30 June 2027.

Presumptive tax is Uganda's turnover-based regime for resident small business taxpayers whose gross turnover from all their businesses is above UGX 10 million and up to UGX 150 million a year. It does not cover medical, dental, architectural, engineering, accounting, legal or other professional services, public entertainment, public utilities or construction. Tax is set by band, and is lower if you keep records. With records it ranges from 0.4% of turnover above UGX 10 million in the lowest band, up to UGX 360,000 plus 0.7% of turnover above UGX 80 million in the top band. Without records it is a flat UGX 80,000, 200,000, 400,000 or 900,000. It is a final tax: no expenses or losses are deducted, and only withholding tax suffered on that turnover and provisional tax paid can be credited. A daily sales book is enough to show which band you fall in. You may leave the regime and be taxed on profit by giving URA written notice with your annual return (URA Taxation Handbook, 8th edition, section 7.1).