What Every Business Owner Needs to Know About Presumptive Tax

In Uganda, thousands of small businesses are silently building tax problems without even knowing it.
The reason?
👉 Most business owners misunderstand how simple — and dangerous — presumptive tax really is.

👇 Suggested Reading
📈 Filing for a bigger business? 👉 The Hidden Cost of Delaying Income Tax Filing for Businesses Above UGX 150M.

🧾 Curious how presumptive tax links to trading licenses? 👉 The Real Cost of Delaying Small Business Tax Filing in Uganda.

📄 Starting fresh? Here’s what to do 👉 What Every Business Owner Must Understand Before (and After) Registration

What is Presumptive Tax?

If your business earns less than UGX 150 million in annual turnover, URA places you under Uganda’s Presumptive Tax Regime.

✅ It’s a simplified tax system designed for small businesses.
✅ Your tax is based on gross sales, not profits.
✅ You don’t need to calculate expenses or deductions.
✅ You don’t need to file provisional tax.

👉 All you do is: declare your sales → URA calculates your tax → you file once a year.

Why Many Small Businesses Don’t File — Until It’s Too Late

We’ve seen countless business owners delay filing because:

🚫 "I’m still small — URA won’t mind."
🚫 "My business isn’t making huge profits yet."
🚫 "My agent registered my TIN — I thought that was enough."
🚫 "I’m not sure how to calculate my turnover."
🚫 "Other small businesses are also not filing — I’ll wait too."

👉 The truth? URA doesn’t need to chase you to charge you.

Their system automatically:

• Tracks your TIN.

• Flags missing returns.

• Applies estimated turnover if you don’t file.

• Charges penalties (UGX 200,000 per missed return).

• Charges interest (2% per month on unpaid taxes).

The Real Cost of Delaying Small Business Tax Filing

When you don’t file on time:

📅 Each year missed adds penalties.
📈 Interest builds every month.
💰 URA estimates your turnover — usually much higher than your real sales.
📩 Ledger balances quietly grow behind the scenes.

📊 Example:

A small shop missing 4 years of filings could suddenly face:

• Estimated turnover assessments

• 4 x UGX 200,000 penalties

• Interest charges over years

• A ledger balance much larger than actual sales

👉 This is why small problems turn into big URA debts overnight.

Presumptive Tax is Simple — When You File Early

✅ You don’t need perfect books.
✅ You don’t need full expense receipts.
✅ You only need an honest declaration of your sales.

👉 Filing early locks in your real turnover before URA guesses it for you.

The Benefits of Staying Fully Filed & Compliant

• ✅ No fear of URA audits

• ✅ No backdated penalties

• ✅ No interest building silently

• ✅ Easy access to Tax Clearance Certificates

• ✅ Open doors for bank loans, tenders, contracts, and future growth

How We Help Small Business Owners File Safely

We’ve helped countless business owners file properly under presumptive tax — even if they were years behind.

✅ We calculate your turnover correctly
✅ File missing years cleanly
✅ Bring your URA ledger back to zero
✅ Apply for any possible waivers or negotiations
✅ Keep your file audit-safe for the future

The Best Time to File? NOW.

👉 Waiting only allows penalties and interest to grow.
👉 Acting early saves you far more than you fear.

💬 Let’s File Your Small Business Tax (Presumptive) the Right Way
We’ll check your TIN, apply the right rates, and avoid penalties.

📲 Click to chat on WhatsApp — It’s quick, legal, and smart for your business.