Tax on property income in Uganda

September 01, 2016

INDIVIDUAL TAXATION

Nonresidents are taxed only on income derived from sources located in Uganda. Married couples are taxed separately.

The tax year is from 01 July of the current year to 30 June of the succeeding year. The tax year 2015 is from 01 July 2015 up to 30 June 2016. The tax year 2016 is from 01 July 2016 up to 30 June 2017.

INCOME TAX

Income of nonresidents is generally taxed at progressive rates.

INCOME TAX FOR NON-RESIDENTS

TAXABLE INCOME, UGS (US$)
TAX RATE
Up to 4,020,000 (US$1,104) 10% on band over US$775
4,020,000 - 4,920,000 (US$1,352) 20% on band over US$1,104
4,920,000 – 120,000,000 (US$32,967) 30% on band over US$1,352
Over 120,000,000 (US$32,967) 40% on all income over US$32,967
Source: Global Property Guide

RENTAL INCOME
Rental income earned by nonresidents exceeding UGS2,820,000 (US$775) is taxed at a flat rate of 20%, withheld by the tenant. This is a final tax.

CAPITAL GAINS
Capital gains realized by nonresidents are considered as income and taxed at the standard progressive income tax rates. When computing taxable capital gains, acquisition costs and improvement costs are deductible from the property value at the time of the sale or sales price of the property.


INCOME TAX FOR NON-RESIDENTS

TAXABLE INCOME, UGS (US$)
TAX RATE
Up to 4,020,000 (US$1,104) 10% on band over US$775
4,020,000 - 4,920,000 (US$1,352) 20% on band over US$1,104
4,920,000 – 120,000,000 (US$32,967) 30% on band over US$1,352
Over 120,000,000 (US$32,967) 40% on all income over US$32,967
Source: Global Property Guide

PROPERTY TAX


Property Tax

Property taxes are levied by the local governments and the tax base is the rateable value of the property (which takes into account the nature of the property concerned and value of improvements). The tax rates are determined by the local authorities but a maximum of 2% is prescribed by law.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are generally taxed at a flat rate of 30%. Income-generating expenses are deductible when calculating taxable income.

  

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