The dispatch book · File 018 · last verified 28 October 2026
TaxIntellilytics Stories · The Dispatch Book · taxintellilyticsstories.com/research/reform-tracker/TIL-REF-2026-018 · printed
File 018 · from MoFPED · to MoFPED and Parliament
Withholding tax policy reform (DRMS2 strategy, policy).
111days from recommendation to lawIncome Tax (Amendment) Act 2026, signed 20 Aug 2026
Evidence slip
From MoFPED · to MoFPED (policy; presents tax bills) and Parliament (enactment) · WHT
“Withholding tax policy reform”
Table 10, strategy list, pp.41 to 42
The desks
no evidence
no evidence
no evidence
no evidence
no evidence
Sent, 1 May 2026. Recommended in Domestic Revenue Mobilisation Strategy 2025/26 to 2029/30 (DRMS2) (Table 10, strategy list, pp.41 to 42).
Law, 20 August 2026. Income Tax (Amendment) Act 2026 introduced a 5% withholding tax on debenture interest paid to non-residents and a 6% withholding tax on payments to public entertainers (register ITA-2026-DEBENTURES5, ITA-2026-ENTERTAINERS6). A partial step: DRMS2 does not list which withholding changes it intends.
The route slip
From finding to result, link by link
Each box is one link of the reform chain. ✓ documented; ? claimed but not documented; · no evidence yet, with what it needs. This file stops at: Output.
- FindingDocumentedDRMS2 lists 'Withholding tax policy reform' as a policy strategy, with UGX 150.5 bn in FY2029/30 (Table 10).
- ProblemDocumentedDomestic revenue is below the NDP IV path; DRMS2's gap is stated as 4.4% of GDP (Table 2).
- RecommendationClaimed, not documentedDRMS2 Table 10 strategy 'Withholding tax policy reform'. HYPOTHESISED: that any later Act implements this strategy rather than a separate decision
- Legal powerDocumentedPFM Act 2015 s.8 (the Minister presents tax and revenue bills to Parliament); opened, PFMA-S8
- InstitutionNamedMoFPED (policy; presents tax bills) and Parliament (enactment)
- ActionDocumentedIncome Tax (Amendment) Act 2026 introduced a 5% withholding tax on debenture interest paid to non-residents and a 6% withholding tax on payments to public entertainers (register ITA-2026-DEBENTURES5, ITA-2026-ENTERTAINERS6). A partial step: DRMS2 does not list which withholding changes it intends.
- OutputNo evidence yetneeds a published output measure
- OutcomeNo evidence yetneeds an outcome measure with a baseline
- EvaluationNo evidence yetneeds an evaluation with a stated method
In the amendment register
Became law 111 days after this recommendation
Withholding tax of 5% on debenture interest paid by a resident company to non-residents
Income Tax (Amendment) Act 2026 · signed 20 August 2026 · in force 1 July 2026 · implementation: pending verification
Open the register's case file ITA-2026-DEBENTURES5 →Became law 111 days after this recommendation
Withholding tax of 6% on payments to public entertainers
Income Tax (Amendment) Act 2026 · signed 20 August 2026 · in force 1 July 2026 · implementation: pending verification
Open the register's case file ITA-2026-ENTERTAINERS6 →Why it was recommended
Finding. DRMS2 lists 'Withholding tax policy reform' as a policy strategy, with UGX 150.5 bn in FY2029/30 (Table 10).
Problem. Domestic revenue is below the NDP IV path; DRMS2's gap is stated as 4.4% of GDP (Table 2).
Strength of the evidence behind it: medium.
Note. DRMS2 is MoFPED's published strategy; no Cabinet approval of the strategy itself was found in the document (Foreword, pdf p.ii). Each strategy is therefore tracked on its own evidence.
Who has the power to act
MoFPED (policy; presents tax bills) and Parliament (enactment). Legal power checked: PFM Act 2015 s.8 (the Minister presents tax and revenue bills to Parliament); opened, PFMA-S8.
Sources
- Domestic Revenue Mobilisation Strategy 2025/26 to 2029/30 (DRMS2)
MoFPED · 2026-05-01 · pages cited per record - Income Tax (Amendment) Act 2026 (Act 21 of 2026)
Parliament of Uganda · 2026-08-20 · PDF p.2; assented 20 Aug 2026, in force from 1 Jul 2026