Tax withheld: 15% of the gross amount of the payment. 5. Withholding agent: A resident person who pays royalties. Tax withheld: 15% of the gross amount of payment to non resident person.

How is wht calculated in Uganda?

Tax withheld: 15% of the gross amount of the payment. 5. Withholding agent: A resident person who pays royalties. Tax withheld: 15% of the gross amount of payment to non resident person.

What are Uganda tax laws?

Resident individuals enjoy a tax free annual income threshold of UGX. 2,820,000 per annum. The balance is taxed at 10%, 20% or 30% depending on the income bracket. Individuals who earn above UGX 120,000,000 pa pay an additional 10% on the income above 120m.

Who is eligible for withholding tax in Uganda?

non-resident person
According to Section 83(1) of the ITA, a tax is imposed on every non-resident person who derives any dividend, interest, royalty, rent, natural resource payment, or management charge from sources in Uganda.

Who is exempted from income tax in Uganda?

The exemption applies to income derived by a person from letting or leasing facilities whose minimum capital investment is USD 10 million for foreigners, USD 300,000 in the case of a citizen, or USD 150,000 in the case of a citizen whose investment is placed up country.

What are departments in URA?

The new organization (URA) amalgamated the three tax administration departments that were responsible for all the taxes collected by the Central Government of Uganda. These Departments were Customs & Excise, Inland Revenue and Income tax Department.

What is URA withholding?

Withholding tax (WHT) is a form of income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). This tax is deducted at source and remitted to URA in advance by the withholding agent.

What are tax exemptions in Uganda?

Some of the exempted supplies include unprocessed foodstuffs, unprocessed agricultural products, postage stamps, supply of financial services, supply of insurance services, unimproved land, education services and supply of social welfare services amongst others.

Who is a presumptive tax payer in Uganda?

Under Income tax- Presumptive Tax The threshold for presumptive Taxpayers is 150 Million Uganda Shillings. For rate for Presumptive Taxpayers with Annual income between UGX 10M – UGX 50M are based on the location and nature of business.

What is the purpose of URA?

We evaluate and grant planning approvals for developments through our Development Control, Urban Design and Conservation guidelines. The guidelines facilitate orderly development and ensure that developments are compatible with the neighbourhood, in line with the longer–term planning intentions for the site.

Do NGOs pay withholding tax in Uganda?

However, NGOs like any other organization are subject to the tax regime of Uganda. In respect to income tax, NGOs are charitable organizations and are exempt from payment of income tax. Under the Income tax act, income of an exempt organization is exempt from income tax.

Who is a withholding agent in Uganda?

A withholding agent is a person legally obliged to withhold tax on payment. To become a withholding agent one must; – Be on the list of selected / designated withholding agents published by the Minister of finance in a gazette or – Be making a payment on a transaction that is subject to WHT by law.