Withholding tax on Professional Services in Uganda

by damaris
(kenya)

Question:Does Uganda levy withholding Tax on professional services such as legal service.

Answer: Yes.

This is because of Section 119A of the Income Tax Act, Cap. 340 as quoted in the box below:

Section 119A: Withholding Tax From Professional Fees

Sub Section (1): A resident person who pays management or professional fees to a resident professional shall withhold tax on the gross amount of the payment at the rate prescribed in Part VIII of the Third Schedule.

Sub Section (2): This Section does not apply to a professional who the Commissioner is satisfied has regularly complied with the obligations imposed on that person under this Act.