Small Business
This is a business whose total sales does not exceed Ugx 150,000,000 in a given year.
However, for tax purposes, URA considers businesses with sales in excess of Ugx 10,000,000 but not exceeding Ugx 150,000,000. This business should at least make sales of Ugx 34,700 in a day.
URA introduced computation of income tax on small businesses and named it ‘Presumptive tax’
This tax is paid by the owners of small businesses.
No. professionals for example persons in dental, medical, engineers, accountants, and architectural practice among others do not pay this tax.
Below are the rates applied in taxing small businesses.
|
TOTAL SALES IN A YEAR |
TAX PAYABLE |
|
|
|
With Records |
Without Records |
|
Total sales that do not exceed Ugx 10 million |
Nil |
Nil |
|
Total sales of more than Ugx 10 million but do not exceed Ugx 30 million |
0.4% of annual total sales in excess of 10 million |
Ugx 80,000 |
|
Total sales of more than Ugx 30 million but do not exceed Ugx 50 million |
Ugx 80,000 plus 0.5% of the total sales in excess of Ugx 30 million |
Ugx 200,000 |
|
Total sales more than Ugx 50 million but do not exceed Ugx 80 million |
Ugx 180,000 plus 0.6% of the annual total sales in excess of 50 million |
Ugx 400,000 |
|
Total sales more than Ugx 80 million but do not exceed Ugx 150 million |
Ugx 360,000 plus 0.7% of the annual total sales in excess of 80 million |
Ugx 900,000 |
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- Total sales in that year
- Availability of business records
Please note
- The tax paid by the presumptive taxpayer shall be a final tax on the business income of a taxpayer
- No deductions shall be allowed for expenditures or losses incurred in the production of business income and;
- No tax credits are provided for in the presumptive tax computation. i.e, Withholding tax (WHT)
- Taxpayers without business records shall pay a fixed amount while those with business records shall pay tax as a percentage of the total annual sales
You can pay this tax by following the steps below:
- Go to URA website; ura.go.ug;
- Under e-services, select payment registration.
- Select tax type i.e. income tax – small businesses.
- Enter your TIN
- Input the amount applicable to you basing on the brackets above
- Select the mode of payment (bank, mobile money, EFT etc) and register the payment.
Click here  to register a payment
Ensure that you pay the assessed amount. You can contact any of our offices for assistance on toll free numbers; 0800117000/0800217000 or WhatsApp: 0772 140000
