Business 20 April 2026 Daily Monitor (Uganda)
URA Revives Six-Month Withholding Tax Exemption: Key Details Businesses Need
The Uganda Revenue Authority has reopened applications for a six-month withholding tax exemption covering July to December 2026, reverting from the previous 12-month cycle to promote stricter compliance and accountability. Qualifying businesses must meet minimum tax payment thresholds and full compliance criteria to improve cash flow without source deductions. Source: https://www.monitor.co.ug/uganda/business/prosper/six-month-tax-exemption-what-businesses-don-t-know-5429708
The Uganda Revenue Authority (URA) has launched applications for the Withholding Tax (WHT) exemption from July to December 2026. This marks a return to a six-month cycle, replacing the longer 12-month period that businesses had grown accustomed to.
This policy shift aims to boost compliance monitoring and ensure ongoing accountability. Businesses now face more frequent applications, demanding consistent record-keeping, timely filings, and no outstanding liabilities.
WHT exemptions help qualifying firms receive payments without source deductions, easing cash flow—especially vital for those on tight margins or handling big contracts. However, eligibility requires meeting tax contribution minimums: Shs100 million for small taxpayers, Shs200 million for medium, and Shs500 million for large ones.
Additional criteria include up-to-date registration, filed returns for the past three years, electronic invoicing compliance, cleared investigations, and director-level tax adherence. The fully digital process via the URA portal calls for proactive internal tax management.
Experts advise treating each application like an audit, aligning accounting with filings, conducting regular reviews, and planning for exemption gaps to avoid disruptions.
This change underscores a push toward continuous compliance in Uganda’s tax system, rewarding structured and transparent operations.
Source: Daily Monitor (Uganda)