Withholding Tax on Property Deals in Uganda

What is withholding tax on property in Uganda?

Withholding tax (WHT) is income tax collected at the point of payment. URA defines it as tax withheld at source by one person, the withholding agent, when paying another person, the payee. The agent sends the money to URA, and the payee gets a credit or a final settlement, depending on the type of payment.

For property, two payments matter most: the price when a business asset is sold, and the commission or fee paid to a real estate agent. A third, smaller category is any payment for goods or services over a total contract value of UGX 1,000,000, where URA says 6% of the gross is withheld. This page covers what URA says as of November 2026, and flags where we could not confirm the position. For the wider list of costs, see Property tax Uganda.

Does a buyer withhold 6% on land?

Only if the land is a business asset. URA's real estate tax guide says a resident person who purchases a business or business asset is required to withhold tax at 6%. Its example: Jane earns rental income from a property and sells it, so the purchaser withholds 6%. A resident who buys an asset from a non-resident must withhold 15% of the gross payment.

The Daily Monitor reported in 2023 that a land dealer said a person buying a business asset such as land must withhold the tax and send it to URA, usually at 6% of the gross payment. The practical test is the same as for income tax: is the seller holding the land as a business asset? Read tax on sale of land for that test. A worked case on a UGX 100 million business-asset sale: the buyer withholds UGX 6 million, pays the seller UGX 94 million and remits the UGX 6 million to URA.

Do agents pay withholding tax on their fees?

Agents suffer it rather than pay it. URA's page for real estate agents says a resident person who pays management or professional fees to a resident real estate agent must withhold 6% of the gross payment. So if you pay an agent UGX 5 million, the payer holds back UGX 300,000 and sends it to URA, and the agent receives UGX 4.7 million. The agent claims the withheld tax as a credit in the annual income tax return.

Agents can also qualify for relief. URA lists a 6% withholding exemption on payments for goods, services and professional fees for compliant taxpayers, granted for 12 months and renewable, where the Commissioner is satisfied that the taxpayer has regularly met tax obligations. An agent who holds such an exemption will show a certificate. If you are an agent, our page on joining as a verified agent explains how we verify identity, and tax compliance is a separate matter between you and URA.

URA's page also says agents must register with the Uganda Registration Services Bureau, with URA and with the local authority, and that its definition of a real estate agent is a person licensed by the Ministry of Lands, Housing and Urban Development.

Is the 6% a final tax or an advance payment?

This is where commentators disagree. URA explains that withholding taxes are either final or creditable. Under a final system the amount withheld settles the payee's tax on that income. Under a creditable system it is an advance payment offset against the final tax in an assessment, and the payee files a return to report the income and pay any difference.

• For agent fees, URA says the tax withheld is credited against the tax payable in the final return, so it is an advance.
• For the purchase of a business asset, the URA text we read does not say whether the 6% is final or creditable.
• Global Law Experts, a legal directory, writes that capital gains tax at 30% on the gain should be modelled with credit for withholding tax paid, which treats it as an advance. That is commercial commentary, not URA wording.

Our advice is to treat the 6% as an advance until URA says otherwise in writing, and to keep the withholding certificate. A seller whose gain is smaller than the 6% of price may be due a refund or credit, so ask URA how to claim it.

What if the buyer does not withhold?

The risk falls on the buyer. URA says the responsibility for the tax rests primarily on the person making payment. If the agent fails to withhold, or withholds too little, the shortfall becomes due from the withholding agent. The agent must pay the tax within 15 days after the end of the month in which the payment was made. That is why buyers who are businesses, and their lawyers, often insist on a clause in the contract that says who handles withholding.

A sale agreement should state whether the price is gross or net of withholding, and who will file the return. Our page on Escrow for Property Deals in Uganda explains how a lawyer can hold the 6% until it is paid. Both sides also need TINs on land worth UGX 10 million or more; see TIN for Land Transactions in Uganda (UGX 10M Rule), and stamp duty on land is a separate charge paid in the buyer's name.

What changed or was proposed in 2026?

In April 2026 the Institute of Certified Public Accountants of Uganda asked Parliament to delete clauses in the Income Tax (Amendment) Bill, 2026 that would tax income from disposal of non-business assets and introduce a 6% withholding on payments made when buying such assets. On 23 April 2026 Parliament passed the bill and, according to its own news item, rejected the proposal to tax gains from the sale of non-business assets, including land. We did not see a separate statement about the withholding clause, and we have not read the enacted Act. Dentons, writing after the 2026 Acts took effect on 1 July 2026, still describes 6% withholding on goods and services supplied in Uganda and says the rate on most other payments is 15%. Track changes on our Uganda land law 2026 page.

If you are a landowner thinking of selling, you can List Your Land on Land & Property, browse plot listings to see how others are priced, or ask our team on WhatsApp or by email.

Frequently asked questions

Related guides

• Tax When Selling Land in Uganda: What Is Clear in 2026
• Stamp Duty on Land and Property in Uganda
• TIN for Land Transactions in Uganda (UGX 10M Rule)
• Property Costs, Taxes and Mortgages in Uganda
• Escrow for Property Deals in Uganda: What Exists
• List Your Land on Land & Property