What is Withholding Tax in Uganda?
Withholding Tax (WHT) is deducted at source by the payer when making certain payments to suppliers. The payer remits it to URA and issues a WHT certificate. For suppliers it is an advance payment of income tax.
WHT Rates Uganda 2026
| Payment Type | Registered Supplier | Unregistered |
|---|---|---|
| Professional services (consultancy, legal) | 6% | 15% |
| Construction and engineering | 6% | 15% |
| Rental income | 15% | 15% |
| Dividends (domestic) | 15% | 15% |
| Interest payments | 15% | 15% |
Key rule: Always request your supplier's TIN before payment — it determines the WHT rate (6% vs 15%) and is required for the WHT certificate.
How to Deduct and Remit WHT
- Calculate WHT at applicable rate on gross invoice amount
- Pay supplier the net amount — gross minus WHT
- File WHT return on URA eTax portal for the month
- Remit to URA by the 15th of following month
- Issue WHT Certificate (Form 14) to the supplier within 30 days
Penalties for Non-Compliance
- Failure to deduct WHT: payer liable for full tax plus 2% monthly interest
- Late remittance: 2% interest per month on outstanding amount
- Failure to issue WHT certificate: creates disputes with supplier offsetting their tax
💬 Questions about withholding tax compliance in Uganda?
Basket Advisory handles WHT deductions, URA remittance, and certificate issuance for businesses and NGOs. Want to know more? Talk to our consultant.
📧 solutions@basketadvisory.com
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