Tax When Selling Land in Uganda: What Is Clear in 2026

Do I pay tax when I sell land in Uganda?

It depends on whether the land is a business asset. As of November 2026, the answer from URA's own guidance has two parts.

• Business asset: yes. A business asset is any asset used or held ready for use in a business, held for sale in a business, or owned by a partnership or company. The gain on selling it is taxed.
• Personal land that is not a business asset: URA's capital gains guide covers only business assets, shares and commercial buildings. A 2026 proposal to tax gains on personal land was rejected by Parliament, as reported on 23 April 2026.

Whatever the answer on income tax, a land transfer has other costs. Stamp duty is paid in the buyer's name; see Stamp Duty on Land and Property in Uganda. Both sides need a TIN for land worth UGX 10 million or more; see TIN for Land Transactions in Uganda (UGX 10M Rule). For the whole list of costs, read Property tax Uganda.

Is there capital gains tax on land in Uganda?

There is no separate capital gains tax law. URA's FAQ says so directly: capital gains are included in business income and taxed under section 18(1)(a) of the Income Tax Act. A gain is the sale price minus the cost base, which includes capital costs of acquiring the asset.

If you held the land for 12 months or more, the cost base is adjusted for inflation using the consumer price index. URA's own example: a company bought land for UGX 10 million in June 2022 and sold it for UGX 25 million in August 2023. After the inflation adjustment the cost base was UGX 11,854,486, the taxable gain UGX 13,145,514 and the tax at 30% about UGX 3.94 million. Had it sold within 12 months, no inflation adjustment applies, and the gain would be UGX 15 million, taxed at UGX 4.5 million.

Some transfers are not recognised for this tax, including a transfer between spouses and the passing of an asset to a beneficiary on the death of the owner, according to the same URA guide.

When is my land a business asset?

URA's definition is wide: an asset used or held ready for use in a business, held for sale in a business, or an asset of a partnership or company. Two practical points follow.

• Land owned by a company is a business asset by definition. Our page on buy land through a company explains what that means for the buyer.
• A person whose business includes buying and selling land is treated as trading. The Daily Monitor reported a tax adviser's view in 2022 that such a person has to prove to URA that a particular plot is not a business asset, and that turning a home into rented office space can make it a business asset on sale. We found that as commentary, not as URA wording, so test your own case with URA.

A tribunal case mentioned by Kampala Associated Advocates shows the risk: a seller who dealt in real estate called its land stock in trade, and URA argued it was a business asset. The details differ by case, so keep records of why and when you bought each plot.

What happened to the proposed tax on personal land?

Government has tried several times to tax land that is not a business asset. A Kampala Associated Advocates note records a 0.5% withholding proposal that Parliament rejected on 15 April 2020, and a 2024 bill proposing 5% on the gain from some non-business land, which excluded the principal residence and rental property taxed under the rental income rules.

In 2026 the Income Tax (Amendment) Bill proposed taxing income from disposal of non-business assets and a 6% withholding on payments for them. The Institute of Certified Public Accountants of Uganda asked Parliament on 15 April 2026 to delete both. On 23 April 2026 Parliament passed the Income Tax (Amendment) Bill, 2026 and, according to Parliament's own news item, rejected the proposal to tax gains from the sale of non-business assets, including land. The committee chair said such assets are usually sold for personal reasons, such as paying medical bills.

One law-firm guide says the opposite, that the exemption was lost from 1 July 2026. Dentons, in a guide that reflects the 2026 amendment Acts, still describes capital gains tax as arising on business assets only. We have not seen the enacted text, so this is the position as reported, not a legal opinion. Check the status on our Uganda land law 2026 tracker before you sell.

What about the 6% withheld by the buyer?

URA says a resident person who purchases a business asset must withhold 6% of the payment. Its example is a landlord who sells a property that earned rent: the buyer withholds 6%. Whether the 6% is a final tax or an advance credited against your tax is not stated in the URA text we read. The URA agent page says withheld tax is credited against the final tax return, and Global Law Experts says capital gains tax at 30% on the gain is computed with credit for withholding tax paid. The full detail is in withholding tax sale of land.

Which questions should I put to URA before I sell?

Put these in writing, and keep the answers with your sale file:

1. Is this plot a business asset in my case, given how I acquired it and what I do for a living?
2. If it is, what cost base and inflation adjustment will you accept, and what records do you need?
3. Will the buyer be required to withhold 6%, and will you credit it against my tax?
4. Do I owe VAT, because the land is improved or the property is commercial?
5. If I am selling on behalf of a deceased owner, which TIN do I use?
6. Has anything changed since the 2026 amendment Acts came into force?

If you live abroad, our guide to how to sell my land in Uganda from abroad covers the paperwork you handle from outside the country.

What should I do next?

Get the title searched, find out whether the land is a business asset in your hands, and ask URA the questions above. If you are ready to sell, you can ask our team on WhatsApp or by email how listing works, or browse plot listings to see how similar plots are priced.

Frequently asked questions

Related guides

• Withholding Tax on Property Deals in Uganda
• Stamp Duty on Land and Property in Uganda
• TIN for Land Transactions in Uganda (UGX 10M Rule)
• Property Costs, Taxes and Mortgages in Uganda
• Owning Land Through a Company in Uganda
• Selling Land in Uganda From Abroad