Related documents
Uganda
Income Tax Act
Chapter 340
- Commenced on 1 July 1997
- [This is the version of this document as it was at 31 December 2000 to 30 June 2001.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
- [Amended by Income Tax (Amendment) Act, 2003 (Act 3 of 2003) on 1 July 1997]
- [Amended by Income Tax (Amendment) Act, 2010 (Act 24 of 2010) on 1 July 1997]
Part I – Preliminary
1. Application of the Act
This Act applies to years of income commencing on or after 1st July, 1997.2. Interpretation
In this Act, unless the context otherwise requires—3. Associate
Part II – Imposition of tax
4. Income tax imposed
5. Rental tax imposed
Rates of tax
6. Rates of tax for individuals
7. Rate of income tax for companies
The chargeable income of a company for a year of income is charged to income tax at the rate prescribed in Part II of the Third Schedule to this Act.8. Rate of income tax for trustees and retirement funds
Part III – Residents and nonresidents
9. Resident individual
10. Resident company
A company is a resident company for a year of income if it—11. Resident trust
A trust is a resident trust for a year of income if—12. Resident partnership
A partnership is a resident partnership for a year of income if, at any time during that year, a partner in the partnership was a resident person.13. Resident retirement fund
A retirement fund is a resident retirement fund for a year of income if it—14. Nonresident person
Part IV – Chargeable income
15. Chargeable income
Subject to section 16, the chargeable income of a person for a year of income is the gross income of the person for the year less total deductions allowed under this Act for the year.16. Chargeable income arising from insurance business
Gross income
17. Gross income
18. Business income
19. Employment income
20. Property income
Exempt income
21. Exempt income
Deductions
22. Expenses of deriving income
23. Meal, refreshment and entertainment expenditure
A deduction is allowed for expenditure incurred by a person in providing meals, refreshment or entertainment in the production of income included in gross income, but only where—24. Bad debts
25. Interest
26. Repairs and minor capital equipment
27. Depreciable assets
28. Initial allowance
29. Industrial buildings
30. Start-up costs
A person who has incurred expenditure in starting up a business to produce income included in gross income shall be allowed a deduction of an amount equal to 25 percent of the amount of the expenditure in the year of income in which the expenditure was incurred and in the following three years of income in which the business is carried on by the person.31. Costs of intangible assets
32. Scientific research expenditure
33. Training expenditure
34. Charitable donations
35. Farming
36. Mineral exploration expenditures
A person carrying on mining operations is allowed a deduction for any expenditure of a capital nature incurred in searching for, discovering and testing, or winning access to deposits of minerals in Uganda.37. Apportionment of deductions
38. Carry forward losses
Part V – Tax accounting principles
39. Substituted year of income
40. Method of accounting
41. Cash-basis taxpayer
A taxpayer who is accounting for tax purposes on a cash-basis derives income when it is received or made available and incurs expenditure when it is paid.42. Accrual-basis taxpayer
43. Prepayments
Where a deduction is allowed for expenditure incurred on a service or other benefit which extends beyond thirteen months, the deduction is allowed proportionately over the years of income to which the service or other benefit relates.44. Claim of right
45. Long-term contracts
46. Trading stock
47. Debt obligations with discount or premium
48. Foreign currency debt gains and losses
Part VI – Gains and losses on disposal of assets
49. Application of Part VI
This Part applies for the purposes of determining the amount of any gain or loss arising on the disposal of an asset where the gain is included in gross income or the loss is allowed as a deduction under this Act.50. Gains and losses on disposal of assets
51. Disposals
52. Cost base
53. Special rules for consideration received
54. Nonrecognition of gain or loss
Part VII – Miscellaneous rules for determining chargeable income
55. Income of joint owners
56. Valuation
57. Currency conversion
58. Indirect payments and benefits
The income of a person includes—59. Finance leases
60. Exclusion of doctrine of mutuality
61. Compensation receipts
A compensation payment derived by a person takes the character of the item that is compensated.62. Recouped expenditure
Part VIII – Persons assessable
Taxation of individuals
63. Taxation of individuals
The chargeable income of each taxpayer who is an individual is determined separately.64. Income splitting
Taxation of partnerships and partners
65. Principles of taxation for partnerships
66. Calculation of partnership income or loss
67. Taxation of partners
68. Formation, reconstitution or dissolution of a partnership
69. Cost base of partner’s interest
Taxation of trusts and beneficiaries
70. Interpretation of provisions relating to taxation of trusts and beneficiaries
In this section and sections 71, 72 and 73—71. Principles of taxation for trusts
72. Taxation of trustees and beneficiaries
73. Taxation of estates of deceased persons
Taxation of companies and shareholders
74. Principles of taxation for companies
75. Change in control of companies
Where, during a year of income, there has been a change of 50 percent or more in the underlying ownership of a company, as compared with its ownership one year previously, the company is not permitted to deduct an assessed loss in the year of income or in subsequent years, unless the company, for a period of two years after the change or until the assessed loss has been exhausted if that occurs within two years after the change—76. Dividend stripping
77. Rollover relief
Part IX – International taxation
78. Interpretation
In this Part—79. Source of income
Income is derived from sources in Uganda to the extent to which it is—80. Foreign employment income
81. Foreign tax credit
82. Taxation of branch profits
83. Tax on international payments
84. Tax on payments to nonresident public entertainers or sports persons
85. Tax on payments to nonresident contractors or professionals
86. Taxation of nonresidents providing shipping, air transport or telecommunications services in Uganda
87. General provisions relating to taxes imposed under sections 83, 84, 85 and 86
88. International agreements
89. Thin capitalisation
Part X – Antiavoidance
90. Transactions between associates
91. Recharacterisation of income and deductions
Part XI – Procedure relating to income tax
Returns
92. Furnishing of return of income
93. Cases where returns of income not required
Unless requested by the commissioner by notice in writing, no return of income shall be furnished under this Act for a year of income—94. Extension of time to furnish a return of income
Assessments
95. Assessments
96. Self-assessment
97. Additional assessments
98. General provisions in relation to assessments
Objections and appeals
99. Objection to assessment
100. Appeal to the High Court or a tax tribunal
101. Appeal to the Court of Appeal
A party to a proceeding before the High Court who is dissatisfied with the decision of the High Court may, with leave of the Court of Appeal, appeal the decision to the Court of Appeal.102. Burden of proof
In any objection to an assessment, any appeal of an objection decision to the High Court, any review of an objection decision by a tax tribunal or any appeal from the decision of the High Court or a tax tribunal in relation to an objection decision, the onus is on the taxpayer to prove, on the balance of probabilities, the extent to which the assessment made by the commissioner is excessive or erroneous.Collection and recovery of tax
103. Due date for payment of tax
104. Tax as a debt due to the Government of Uganda
105. Collection of tax from persons leaving Uganda permanently
106. Recovery of tax from person owing money to the taxpayer
107. Collection of tax by distraint
108. Recovery from agent of nonresident
109. Duties of receivers
110. Security on property for unpaid tax
Provisional tax
111. Payment of provisional tax
112. Estimated tax payable
Refund of tax
113. Refunds
Part XII – Procedure relating to gross rental tax
114. Gross rental tax
Part XIII – Withholding of tax at the source
115. Interpretation of Part XIII
In this Part—116. Withholding of tax by employers
117. Payment of interest to resident persons
118. Payment of dividends to resident shareholders
119. Payment for goods and services
120. International payments
121. Nonresident services contract
122. Withholding as a final tax
Where —123. Payment of tax withheld
124. Failure to withhold tax
125. Tax credit certificates
126. Record of payments and tax withheld
127. Priority of tax withheld
128. Adjustment on assessment and withholding agent’s indemnity
Part XIV – Records and information collection
129. Accounts and records
130. Business information returns
131. Access to books, records and computers
132. Notice to obtain information or evidence
133. Books and records not in the English language
Where any book, record or computer-stored information referred to in sections 129, 131 or 132 is not in English, the commissioner may, by notice in writing, require the person keeping the book, record or computer-stored information to provide, at the person’s expense, a translation into English by a translator approved by the commissioner.Tax clearance certificate
134. Tax clearance certificate
A taxpayer—(a)providing a passenger transport service;(b)providing a freight transport service where the goods vehicle used has a load capacity of more than two tonnes;(c)supplying goods or services to the Government; or(d)transferring funds in excess of 2500 currency points from Uganda to a place outside Uganda,shall obtain a tax clearance certificate from the commissioner as provided for in regulations made under section 164.Tax identification number
135. Tax identification number
Part XV – Offences and penalties
Interest
136. Interest on unpaid tax
Offences and penalties
137. Failure to furnish a return
138. Failure to comply with recovery provision
139. Failure to maintain proper records
A person who fails to maintain proper records under this Act commits an offence and is liable on conviction to—140. Failure to comply with a section 132 notice.
A person who, without good cause, fails to comply with a notice issued under section 132 commits an offence and is liable on conviction to a fine not exceeding twenty-five currency points.141. Improper use of tax identification number
A person who knowingly or recklessly uses a false taxpayer identification number, including the taxpayer identification number of another person, on a return or document prescribed or used for the purposes of this Act, commits an offence and is liable on conviction to a fine of not less than twenty-five currency points or to imprisonment for a term not exceeding one year or to both.142. Making false or misleading statements
143. Obstructing an officer of the authority
A person who obstructs an officer of the Uganda Revenue Authority in the performance of duties under this Act commits an offence and is liable on conviction to a fine not exceeding twenty-five currency points.144. Aiding and abetting
Any person who aids and abets another person to commit an offence, referred to as the “original offence”, in this section under this Act, or counsels or induces another person to commit such an offence, commits an offence and is liable on conviction to a fine not exceeding twenty-five currency points or to imprisonment for a term not exceeding one year or to both.145. Offences by and relating to officers and persons employed to carry out the Act; penalties
146. Offences by companies
147. Officer may appear on behalf of the commissioner
Notwithstanding anything contained in any written law, any officer duly authorised in writing by the commissioner may appear in any court on behalf of the commissioner in any proceedings in which the commissioner is a party and, subject to the directions of the Attorney General, that officer may conduct any prosecution for an offence under this Act and, for that purpose, shall have all the powers of a public prosecutor appointed under the Magistrates Courts Act.148. Compounding offences
149. Place of trial
150. Tax charged to be paid notwithstanding prosecution
The amount of any tax or interest due and payable under this Act shall not be abated by reason only of the conviction or punishment of the person liable for payment thereof for an offence under this Act or for the compounding of such offence under section 148.Penal tax
151. Penal tax for failure to furnish a return of income
A person who fails to furnish a return of income for a year of income within the time required under this Act is liable to pay a penal tax equal to 2 percent of the tax payable for that year or one currency point per month, whichever is the greater, for the period the return is outstanding.152. Penal tax in relation to records
A person who deliberately fails to maintain proper records for a year in accordance with the requirements of this Act is liable to pay a penal tax equal to double the amount of tax payable by the person for the year.153. Penal tax in relation to false or misleading statements
154. Penal tax for understating provisional tax estimates
155. Recovery of penal tax
Part XVI – Administration
156. Delegation
The commissioner may delegate to any officer of the Uganda Revenue Authority any duty, power or function conferred or imposed on the commissioner under this Act, other than the power to compound offences under section 148 and the power to delegate conferred by this section.157. Official secrecy
Forms and notices
158. Forms and notices; authentication of documents
159. Service of notices and other documents
Unless otherwise provided in this Act, a notice or other document required or authorised by this Act to be served—(a)on a person being a resident individual other than in a representative capacity, is considered sufficiently served if—(i)personally served on that person;(ii)left at the person’s usual or last known place of abode, office or place of business in Uganda and the service witnessed by a member of the executive committee of the local council; or(iii)sent by post to such place of abode, office or place of business, or to the person’s usual or last known address in Uganda; or(b)on any other person, is considered sufficiently served if—(i)personally served on the nominated officer of the person;(ii)left at the registered office of the person or the person’s address for service of notices under this Act; or(iii)it is left at or sent by post to any office or place of business of the person in Uganda.Rulings
160. Practice notes
161. Private rulings
Remission of tax
162. Remission of tax
Part XVII – Miscellaneous
163. Interpretation of Part XVII
In this Part, “repealed legislation” means the Income Tax Decree, 1974, amendments to it and subsidiary legislation made under it and section 25 of the Investment Code, 1991.164. Regulations
165. Amendment of monetary amounts and Schedules
The Minister may, with the approval of Parliament, by statutory instrument, amend—166. Transitional
History of this document
28 July 2023 amendment not yet applied
01 July 2023 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2023
01 July 2019 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2019
01 July 2018 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2018
01 July 2017 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2017
01 July 2016 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2016
01 July 2015 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2015
Amended by
Income Tax (Amendment) (No. 2) Act, 2017
06 March 2015 amendment not yet applied
Amended by
Public Finance Management Act, 2015
01 July 2014 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2014
01 July 2013 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2013
01 July 2012 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2012
01 July 2011 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2011
01 July 2010 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2010
01 July 2009 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2009
01 July 2008 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2008
Amended by
Income Tax (Amendment) (No. 2) Act, 2008
01 July 2006 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2006
01 July 2005 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2005
01 July 2004 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2005
01 July 2002 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2003
01 July 2001 amendment not yet applied
Amended by
Income Tax (Amendment) Act, 2002
31 December 2000 this version
Consolidation
01 July 1997
Subsidiary legislation
Title | Numbered title |
---|---|
Income Tax (Rental Rates) Regulations, 2020 | Statutory Instrument 42 of 2020 |
Cited documents 0
Documents citing this one 4
Gazette 3
1. | Uganda Government Gazette dated 2000-03-24 number 20 | |
2. | Uganda Government Gazette dated 2000-12-15 number 73 | |
3. | Uganda Government Gazette dated 2003-03-14 number 12 |
Legislation 1
1. | Public Finance Management Act, 2015 | 26 citations |