Corporation Tax
A company is defined as a body of persons corporate or unincorporated, whether created or recognized under the law in force in Uganda or elsewhere and includes a unit trust, but does not include any other trust or partnership. Accordingly, limited liability companies, companies limited by guarantees, associations and Non-Government Organizations among others are taxed under the company taxation regime.
Both Resident and non-resident companies are assessable (subject) to tax in Uganda on their income that is derived from Uganda while resident companies are subject to tax on their worldwide income. Income tax paid by companies is referred to as corporation tax.
Income tax on companies is imposed under the Income Tax Act on every person who has chargeable income for any year of income. The current rate of tax applicable to companies is 30% charged on the profits from business (Chargeable Income). The chargeable income for both resident and non-resident companies is taxed at this rate.
|
Sale of goods (clothes, shoes, Poultry, Timber, beans) |
200,000,000 |
 |
|
Add Other income |
|
 |
|
(eg subletting of space for rent) |
39,000,000 |
 |
|
Total revenue from trading |
|
239,000,000 |
|
Less: Costs of goods sold |
|
 |
|
Purchases |
15,000,000 |
 |
|
Direct labor- (sales girl, planting, weeding, feeds) |
14,000,000 |
 |
|
Cost of direct overheads (direct power, water, etc.) |
5,000,000 |
 |
|
Total Production Costs |
|
34,000,000 |
|
Other costs: |
|
 |
|
Less Administrative costs |
|
 |
|
(Worker salaries, office power, Water, rent, etc.) |
16,000,000 |
 |
|
Total costs |
|
50,000,000 |
|
Net Profit/Loss (Chargeable Income) |
189,000,000 |
|
|
Tax at 30% |
56,700,000 |
|
