Witholding tax for short contracts

by jjamba james
(Kampala ,Uganda )

Question
a. If a company enters into a contract with a consultant and is a) Resident of Uganda b) Nonresident ; at what rate will the Withholding Tax be charged ?

b. If there are short but many of the same contracts in one accounting year, what rate will the Withholding Tax be charged?

Answer: Cases where a person/company effecting a payment to a resident consultant or payee the percentage of income withheld is 6%.

This is withheld on consultancy services and contractual fees.

For cases where the payment being effected from a person or company (payee) to a non resident consultant (payee), the percentage of that income that is supposed to be withheld by the company is 15%.

This is important information to note, the payer (company in this case) must remit to the Commissioner General the tax withheld on or before the 15th day of the month following the month in which the payment subject to withholding tax is made.