Uganda Corporate Tax Guide 2026

Overview — Corporate Tax in Uganda

Corporate tax in Uganda is governed by the Income Tax Act (Cap. 340) and administered by the Uganda Revenue Authority (URA). A company is tax resident in Uganda if it is incorporated under Ugandan law or if its place of effective management is in Uganda. Resident companies are taxed on worldwide income; non-resident companies are taxed only on Uganda-source income. The standard tax year runs from July 1 to June 30, though companies may apply for a different accounting period.

Standard Corporate Tax Rate — 30%

The standard corporate income tax rate in Uganda is 30% of taxable profits for resident companies. Non-resident companies with a permanent establishment in Uganda are also taxed at 30% on Uganda-source income. Taxable profit is calculated as gross revenue less allowable deductions including operating expenses, capital allowances (depreciation), interest costs, and losses carried forward. Losses may be carried forward for up to 5 years.

Reduced Rates

• Agriculture, Education, Health — 15%: Companies engaged in qualifying agricultural, educational, or health activities benefit from a reduced CIT rate of 15%.
• Mining — 25%: Mining companies are taxed at 25% under the Mining and Minerals Act.
• Strategic Investors — 0%: Strategic investors may negotiate a zero-rate subject to specific agreements with the government.

Capital Allowances

Uganda provides capital allowances (depreciation) on qualifying capital expenditure. Industrial buildings qualify for 5% per annum, plant and machinery at 20-40% depending on the category, and motor vehicles at 20%. Initial allowances of up to 50% may be available for qualifying investments in priority sectors.

Filing Requirements

Companies must file annual corporate tax returns within 6 months of the end of the accounting period. Provisional tax is payable in two instalments during the year. Late filing attracts penalties of 2% of the tax due per month, and late payment attracts interest at 2% per month.

Disclaimer

This guide provides general information about Ugandan corporate tax. Tax laws may change. Consult a qualified Ugandan tax advisor or URA for advice specific to your situation.