A resident company is taxed on its income from all geographical sources. A non-resident company is only subject to Uganda income tax on income derived from sources in Uganda.
The income tax rate applicable to the chargeable income of companies is 30%, with the exception of resident companies whose turnover does not exceed UGX 150 million, to whom presumptive tax applies (see below).
Chargeable income is gross income for the year less the total deductions allowed under the Income Tax Act (ITA).
Resident companies with turnover of less than UGX 150 million
A rate of 1.5% of turnover is used to determine income tax payable by a resident taxpayer whose turnover is between UGX 50 million and UGX 150 million, subject to certain thresholds. For taxpayers whose gross turnover is above UGX 10 million but not in excess of UGX 50 million, fixed amounts of tax apply, subject to the location of the business. The amount of tax payable ranges between UGX 100,000 to 550,000 per annum.
However, on application to the Commissioner, a resident taxpayer with a turnover of less than UGX 150 million may be taxed at 30% on chargeable income.
This category excludes professionals, public entertainment services, public utility services, or construction services.
Local income taxes
There are no district, municipal, or local corporate income taxes in Uganda.