29/05/2026
NEW UGANDAN TAXES📝
EFFECTIVE JULY 2026.
*** Effects of ‘The protection of Act 2026’
Parliament of Uganda
With the new Financial Year beginning in July please take note of the new taxes.
➡️ High Income Earner Tax
If your annual income exceeds 120,000,000 shs an additional 10% tax has been introduced
➡️ Gaming and Betting Tax
15% withholding tax (WHT)
➡️ Mobile Money Services Tax
10% WHT on commissions for telecommunications and mobile money services
➡️ Non-business Assets Tax
6% WHT on purchases of non-business assets like land
Non compliance would result into fines of up to 4 billion shillings or 20 years imprisonment.
➡️ Diaspora Remittances (Income Tax)
The proposed tax by government of income earned abroad and sent home by Ugandan citizens was dropped.
➡️ World Wide Income Clarification
Resident individuals are taxable on the money they receive from abroad at the same rate as income earned in Uganda.
➡️ Foreign Funding Cap
Individuals or organizations may not receive more than 400 million shillings from foreign sources in a 12 month period without prior written approval from the Minister of Internal Affairs.
➡️ Agent of a Foreigner
Is any one whose activities is financed or subsidized by foreigner (eg running an orphanage) requiring them to register with the Minister of Internal Affairs.
Failure to do so will result to penalties of up to 4 billion shilling or 20 years imprisonment.
➡️ Banking Restrictions
Banks are prohibited from releasing payments to Agents of Foreigners without the following;
- Funding Source Declaration
- Proof of Ministerial Authorization from the Minister of Internal Affairs.
New Monthly Pay As You Earn (PAYE) Tax
1. Monthly income of 335,000 shs and below are not supposed to pay taxes
2. 335,001 - 410,000 shs will be taxed 10% of Income exceeding 335,000.
3. 410,001 - 485,000 shs will be taxed 7,500 shs + 25% of income exceeding 410,009 shs.
4. 485,001 - 10,000,000 shs will be taxed 26,250 shs + 30% of income exceeding 485,000.
5. Above 10 million shs per month will be taxed 2,880,750 + 40% of income exceeding 10 million shs
These taxes are beginning in July.