Uganda legal and accounting and tax considerations in 2024

1. Corporate tax is levied in Uganda at a standard rate of 30%. Capital gains are included in annual income and will be taxed at 30%;
2. Resident companies with income of US$4,700 in the last 3 months must pay VAT monthly at the standard rate of 18%. Returns must be filed by 15^th of every month;
3. Dividend payments and royalty payments to non-resident entities will be subject to 15% withholding tax;
4. Interest payments to both resident and non-resident entities is subject to 15% withholding tax. However, payments on government securities will be subject to tax at 20%;
5. All resident companies can carry forward their business losses indefinitely;
6. All resident companies must contribute 10% of their employee’s monthly salary to the National Social Security Fund (NSSF);
7. Transfer of securities and immovable property in Uganda will be subject to a transfer tax at 1%;
8. Stamp duty is levied at 0.5% during company incorporation and during the process of change in the share capital;
9. Resident companies must file their tax returns within 6 months after the end of the accounting year. A penalty of 2% is payable monthly in case of delays;
10. Uganda has signed DTAs with 9 countries including Denmark, India, Italy, South Africa and United Kingdom to reduce withholding tax on payments abroad;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budgets and sensitivity analysis;
12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.