Value Added Tax (VAT)
VAT is a consumption tax charged at a rate of 18% on all supplies made by taxable persons i.e. persons registered or required to register for VAT purposes. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.
Click here to register for VAT
Tour agents are expected to prepare two accounts
- The reconciliation account to determine the actual VAT spent by the tourist.
- The VAT account to determine the actual amount of VAT payable or claimable to URA by the agent
Any person dealing in tourism business is required to be registered for income tax. Income tax applies generally to all types of persons who derive income, whether an individual, non-individual or partnership.
Resident persons are taxed on worldwide income, while non-resident persons are taxed only on income derived from sources in Uganda.
Click here for information on income tax rate.
Withholding tax (WHT) is income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee).
The tax withheld is credited/ reduced on the tax payable in the final income tax return.
Click here for information on Withholding tax.
Pay As You Earn (PAYE)
Any person dealing in transport business and has workers earning a monthly salary more than 235,000 per month is required to register for Pay as You Earn (PAYE), withhold and remit tax to URA.
Click here for the PAYE rates