Executive Summary
Uganda’s tax authority issued major updates effective retroactively from July 1, 2026, including a revised VAT registration threshold and a new withholding tax on gaming and betting winnings. The URA also opened 2027 licensing cycles for customs agencies and bonded warehouses, while issuing enforcement notices for overstayed customs warehouse goods and withholding tax exemption applications for the first half of 2027.
Important Updates
Uganda Revises VAT Registration Threshold Effective July 1, 2026
The Uganda Revenue Authority (URA) issued a public notice on November 2, 2026, revising the annual Value Added Tax (VAT) registration threshold under the authority of the Commissioner General pursuant to the Value Added Tax Act. The amendment raises the annual taxable turnover limit at which businesses must register for VAT, effective retroactively from July 1, 2026. While the notice does not publish the specific new threshold figure, it confirms an increase from the previous level and leaves the standard VAT rate of 18% and invoicing rules unchanged.
By increasing the threshold, URA reduces the compliance obligation perimeter for small and medium enterprises, lowering administrative burdens on micro-enterprises that no longer meet the mandatory registration limit. Affected businesses may apply for deregistration via the URA web portal if they exceeded the old threshold but remain below the new one between July 1 and November 2, 2026. New businesses crossing the revised threshold must register within the statutory timeframe, and multinational corporations with Ugandan subsidiaries should review group registration positions. Penalties for failure to register when liable remain enforceable under Section 15 of the VAT Act, including fines and interest on unpaid VAT.
Sources: URA – Revised VAT Registration Threshold
Uganda Imposes Withholding Tax on Gaming and Betting Winnings Effective July 1, 2026
On November 2, 2026, URA published a notice introducing a final withholding tax on gross winnings from gaming, betting, lotteries, and similar activities, derived from amendments in the Income Tax (Amendment) Act, 2026. The measure takes effect from July 1, 2026, and shifts collection responsibility to licensed gaming and betting operators, who must act as withholding agents by deducting tax at the point of paying out winnings to players. The tax is likely final for resident individuals, meaning winnings are not aggregated with other income for PAYE or personal income tax purposes.
Operators must remit withheld amounts to URA within the statutory period, typically by the 15th of the following month, and file monthly withholding tax returns using Form WT. Enhanced record-keeping is required, including registers of winners, amounts won, tax withheld, and player identification such as TIN or NIN. For the period from July 1 to November 2, 2026, operators should compute and remit any arrears immediately to avoid penalties under Section 136 of the Income Tax Act, including interest at 2% per month and penalties up to 100% of unpaid tax. Multinational corporations operating gaming platforms in Uganda must integrate withholding logic into payment systems to avoid enforcement actions, including potential license suspension by the National Gaming Board in coordination with URA.
Sources: URA – Withholding Tax on Gaming and Betting Winnings
Secondary Regulatory & Regional Updates
- Withholding Tax Exemption Applications – January to June 2027: URA invites eligible taxpayers to apply for withholding tax exemption certificates for the first half of 2027 under Income Tax Act Sections 136(5)(b)(ii) and 129(2) and VAT Act Section 5(4). Applications, typically due by November 30, 2026, require tax clearance certificates and supporting documentation via the URA e-services portal. Payers must verify valid exemption certificates before making payments without deduction to avoid liability for unwithheld tax plus penalties.URA – Withholding Tax Exemption Applications
- Clearance of Overstayed Customs Warehouse Goods: URA ordered owners, importers, and agents to clear and remove goods overstaying in customs warehouses at Naivasha ICD (Kenya) and Mombasa Port under Section 42(1) of the East African Community Customs Management Act (EACCMA) 2004. Goods exceeding the statutory storage period risk disposal by public auction under Section 43. Owners generally have 14 to 30 days from publication to pay duties, taxes, rent, and charges, and remove cargo through licensed clearing agents using SAD 500 entries and URA e-Payment.URA – Clearance of Overstayed Goods
- Customs Agency Licensing for 2027: URA invited applications for 2027 customs agency licenses under EACCMA Section 145(1) and Regulations 149–152. Applicants must provide URSB registration, a valid TIN, tax compliance evidence, professional indemnity insurance, and a physical office in Uganda. Applications are submitted online via the URA portal, with penalties for late submissions. Licensees must maintain continuous compliance with VAT and income tax obligations.URA – Customs Agency Licensing 2027
- Bonded Warehouse Licensing for 2027: URA opened applications for new and renewal bonded warehouse licenses for 2027 under Section 62 of EACCMA 2004. Applicants must submit proof of premises ownership or lease, architectural plans, fire safety certificates, and a bond guarantee equal to anticipated maximum duty liability. A customs officer must be stationed at the facility at the licensee’s expense, and monthly returns are required. Non-compliance risks license revocation and prosecution under Section 199 of EACCMA.URA – Bonded Warehouse Licensing 2027
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.