Individuals with business or rental income and all companies; employees on PAYE only are exempt from filing.
Tax year and deadline
Tax year 1 July to 30 June; returns are due within six months, by 31 December.
Penalties for filing or paying late
Filing an income tax return late costs a penal tax of 2% of the tax payable under the return, before credits, or UGX 200,000, whichever is higher, for every month the return is outstanding. Not filing is also an offence, with a fine of up to UGX 1,000,000, rising to UGX 2,000,000 if you still miss the deadline a court sets. Interest runs on unpaid tax from the original due date, and an approved filing extension of up to 90 days does not move the payment date. If your provisional estimate is below 90% of the final figure, the penalty is 20% of the shortfall in tax. False or misleading statements attract penal tax of double the tax understated. Until 30 June 2027, interest and penalties outstanding at 30 June 2025 are waived if you pay the principal tax (URA Taxation Handbook section 2.5; Tax Procedures Code (Amendment) Act 2026).
Written from published tax-authority guidance and reviewed on 2026-10-11. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Uganda Revenue Authority (URA) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Uganda Revenue Authority (URA).