Uganda withholding taxes

by Fabian White
(Madrid, Spain)

Question:
Hi,

I want to know how to recover the withhold tax that my customer (bases in Uganda) has applied in my invoices.

We are a company based in Spain and our customer is based in Uganda. We have sold professional services to them and when they've payed our invoices thay have withhold 13% because of the withholding tax.

They told us that it could be possible for us to recover this tax.

My question is how because of we don't have office in Uganda.

Thanks in advance!

Best regards,
Fabián

Answer:
Under the Uganda tax system a resident company who pays management or professional fees to a non resident professional is required to withhold tax at 15% of the gross amount of payment.

The withholding tax is therefore claimed by presenting a withholding Tax certificate to the revenue authority in Spain which is treated as a foreign tax credit in that financial year.