Taxation of NGOs in Uganda

Nonprofit/non-governing administration businesses serve excellent results in that enhance federal government and public executions without the need of a income motive.

The fantastic results in are primarily for distinct classes of men and women like women of all ages, little ones, the youth and elderly, refugees, and with major concentrate parts including wellness, education, ecosystem, social and political welfare.


These NGOs run their actions by way of funding gained in type of contributions, grants and donations. It ought to on the other hand be observed that their funding qualifications generates a mistaken assumption of an automated tax no cost natural environment that NGOs are not subject matter to taxation.

NGOs in Uganda do not have a specific tax routine. While their money has reduction from earnings tax, unique tax obligations are not waived/exempted by legislation – for example withholding taxes on employees and suppliers, stamp duty on lawful devices, all oblique taxes on materials, providers this kind of as utilities h2o, energy and many others.

As far as Uganda’s profits tax legislation is concerned, NGOs will usually have no earnings tax legal responsibility simply because of the character of enterprise they perform which is nonprofit.

At a simple degree, the funding obtained by NGOs varieties their small business earnings. NGOs must hence choose actions to be certain that their cash/receipts are not taxed.

NGOs can utilize to the Commissioner Standard URA for created rulings for recognition as exempt organizations.

Shorter of this process, NGOs are not able to assert to be exempted from money tax.

When the NGO has obtained a ruling for recognition as an exempt group, it will be issued with a certification of Exemption by the tax Authority.

It should be mentioned that as an exempted NGO, the NGO should desist from any worthwhile things to do or else, there is hazard that evens will be damaged and the exempt standing will be missing.

However, it is sensible that if the business engages in lucrative things to do, it need to use any income to fulfill its objectives. For every se the gain must not advantage any private individual other than for use in satisfying the organization’s goals.

As an exempted corporation beneath Uganda’s profits tax laws does not negate the obligation to file revenue tax returns. Like other entities (organizations, partnerships or believe in), the obligation to file money tax returns is obligatory even if no tax is payable.

In conclusion, Taxation of NGOs in Uganda is a intricate matter. Any NGO sealed in the misconception that tax is not of a lot issue for them need to foresee this as a risk to their things to do in the long term.

Lawyer and Tax Specialist at
M/s PHLEB Related Advocates. Speak to: [email protected]