Uganda Investment Income Guide 2026
Investment income in Uganda is subject to withholding tax at source. Dividends, interest, royalties, and management fees all attract 15% WHT for residents. Capital gains are taxed as ordinary income at the taxpayer's marginal rate. Uganda has over 15 Double Taxation Treaties that may reduce these rates.
Dividends — 15% WHT
Dividends paid by a Ugandan company to a resident individual or company are subject to 15% withholding tax. The WHT is a final tax for individuals (no further tax on the dividend income). For companies, the dividend income is included in taxable income but the WHT is creditable. Dividends paid to non-residents are subject to 15% WHT unless reduced under a Double Taxation Treaty.
Interest — 15% WHT
Interest earned by residents is subject to 15% withholding tax. Certain interest is exempt, including interest earned by retirement funds, interest on government securities held by non-residents, and interest on savings accounts below a threshold. Interest on bank deposits may be exempt for resident individuals.
Royalties — 15% WHT
Royalties paid to residents for the use of intellectual property, patents, trademarks, copyrights, and similar assets are subject to 15% WHT. The rate for non-residents is also 15% unless reduced under a Double Taxation Treaty.
Management Fees — 15% WHT
Management fees paid to non-residents are subject to 15% WHT. For residents, management fees are generally not subject to WHT but are included in the recipient's ordinary income.
Capital Gains
Capital gains from the sale of investments (shares, bonds, business assets) are included in ordinary income and taxed at the taxpayer's marginal rate (0-40% for individuals, 30% for companies). Gains from the sale of shares listed on the Uganda Securities Exchange may be exempt.
Double Taxation Treaties
Uganda has over 15 Double Taxation Treaties in force, including with the UK, South Africa, India, Kenya, and others. These treaties may reduce WHT rates on dividends, interest, and royalties for residents of treaty countries.
Disclaimer
This guide provides general information. Tax laws may change. Consult a qualified Ugandan tax advisor or URA for your specific situation.