The following choices of legal form are available in Uganda i.e. Limited liability company, General Partnership, Limited Liability Partnership, Branch, Subsidiary, Sole trader, and Public Limited Company.
The Ugandan tax system operates both scheduler system of taxation and worldwide income system. It features both corporate and individual income tax, value added tax on goods and services, customs and excise duties, local excise tax on specific products and services, Gamming and Pool Betting Tax on games and sports, as well as stamp duty on legal documents. There are also a number of statutory levies and social security payments.
Collection of taxes is mainly through self-assessment and by withholding tax on payments to residents and non-residents, although the tax body sometimes may raise assessment in particular cases. As part of tax administration and self-assessment, individual income tax is collected by employers for individuals who are in formal employment inform of PAYE (Pay as You Earn) as a withholding tax. The employer therefore acts as a withholding tax agent who collects monthly PAYE and remits to the tax body. Currently penalties and interest on non-compliance and late payment of taxes are onerous. The fact that Uganda’s tax system is predominately self-assessment, the tax body regularly conducts compliance audits and investigations to satisfy themselves that the right information and subsequently the right tax is being declared and paid.