The corporate profit tax Uganda and capital gains tax are key components of Uganda’s corporate taxation system, regulated by the Uganda Revenue Authority (URA). These taxes apply to companies, trusts, and cooperatives operating in Uganda, ensuring compliance with national tax laws and contributing to public revenue.
Corporate profit tax is charged on a company’s net annual income, while capital gains tax applies to profits made from the sale or transfer of business assets, such as land, buildings, or shares. Companies must file tax returns, settle any outstanding payments, and obtain a Tax Clearance Certificate to remain compliant.
Procedure
Apply In-Person:
- Visit the nearest Uganda Revenue Authority (URA) office to make payment for corporate profit and capital gains tax.
- Present the required documents to the URA revenue officer for verification. These include:
- Tax Identification Certificate (TIN)
- Proof of income
- Audited accounts
- Business Registration Certificate
- Articles and Memorandum of Association
- Obtain and fill out the Corporate Profit Tax and Capital Gains Tax application form.
- The tax officer will assess the declaration and determine the amount of tax payable.
- You will be directed to the cashier to make the payment.
- After payment, a Tax Clearance Certificate is issued if all outstanding tax obligations are cleared.
Required Documents
- Certificate of Incorporation
- List of employees with annual salaries
- Directors’ Tax Clearance Certificates (Electronic TCCs)
- Letter of application for registration
- Proof of payment for assessed taxes
Eligibility
All corporate entities operating in Uganda—including local and foreign companies, cooperatives, and trusts—are required to pay corporate profit tax. Foreign branches operating in Uganda are also subject to this tax on income earned within the country.
Fees and Tax Rates
Corporate tax and capital gains rates in Uganda are as follows:
- Corporate income up to UGX 10,000,000: 20%
- Corporate income above UGX 10,000,000: 25%
- Capital gains tax: 20%
- Branch tax: 20%
- Withholding tax:
- Dividends – 0%
- Interest – 20%
- Royalties – 20%
- Services from non-residents – 20%
- Branch remittance tax: 0%
Losses incurred in business operations may be:
- Carried back up to 3 years for long-term projects.
- Carried forward up to 5 years for other projects.
Validity
The Tax Clearance Certificate issued after payment of corporate profit tax Uganda is valid for 12 months. It must be renewed annually to maintain good tax standing with URA.
Processing Time
Processing takes approximately 5 working days, depending on verification and payment confirmation.
Office Location and Contact
Uganda Revenue Authority (URA)
Head Office: Plot M193/M194, Nakawa Industrial Area, Kampala, Uganda
P.O. Box 7279, Kampala
Toll-Free: +256 800 117000
Email: [email protected]
Website: www.ura.go.ug
Instructions
Before submitting your tax return, ensure that all payments are made and documents are up to date. All corporate taxpayers must include accurate financial records, audited statements, and bank details for validation. Delayed or inaccurate filing may result in penalties or interest charges.
Required Information
- Full name of taxpayer
- Company name and Taxpayer Identification Number (TIN)
- Registered business name
- Bank name, branch, and account number
- Total chargeable income and tax payable
Capital Gains Tax (CGT)
Capital gains tax applies to profits from the sale, exchange, or transfer of assets located in Uganda. Both resident and non-resident individuals or entities are subject to this tax.
- For non-residents becoming residents, a 30% tax is imposed on capital gains.
- CGT applies to property acquired before or after January 1, 2014.
Corporate Income Tax (CIT)
Corporate income tax is levied on companies’ annual profits.
- Resident companies pay tax on worldwide income.
- Non-resident companies pay tax only on Ugandan-sourced income.
- A 30% tax rate is standard for both resident and non-resident corporations.
- In addition, foreign branches must pay a 15% withholding tax on profits remitted to their parent companies.
Need for the Document
Paying corporate profit tax Uganda and capital gains tax is essential for legal compliance, business reputation, and financial credibility. Companies require proof of tax clearance to bid for government contracts, access loans, and renew business licenses.
Information Which Might Help
Failure to comply with corporate tax obligations can lead to heavy penalties and suspension of trading licenses. Regular filing helps businesses avoid legal disputes and ensures smooth financial audits.
