The Directors and management of Stanbic Holdings Uganda Limited (SHUL), the umbrella company of Stanbic Bank Uganda, have protested after Uganda Revenue Authority (URA) slapped the company a tax bill of Shs 133.7 billion.
This includes a tax of Shs 33.8 billion to be paid by Stanbic Bank Uganda.
This partiuclar tax bill is related to transfer pricing according to the company annual financial statement for 2024. The audit covered 12 years (2012-2024).
“In March 2025, the URA issued the report detailing the basis of the assessment indicating a total principal tax liability of Shs 133.7 billion comprising of the liability assessed on the Company of Shs 99.9 billion and that for the Bank of Shs 33.8 billion.”
This figure, the report notes, excludes interest and penalties which would apply, unless waived. According to the report, the bank is preparing an objection to the assessment (of Shs 33.8 billion), arguing it is unfair.
“The Group has relied on the opinion of tax advisors and legal counsel in developing the assessment which indicates
that the Group has strong grounds to successfully object the assessment,” the bank notes in its report.
Yet should URA insist on its assessment, the bank has assured its directors and shareholders that payment of the tax will not greatly affect its core capital.
“Management has reviewed the impact of this assessment on the Bank’s capital taking the worst-case scenario of the total principal tax amount assessed on the Bank (Shs 32.8 billion) and found that this would have a 0.4% drop on its capital,” the annual report says.
We have been told that there are ongoing talks between URA and Stanbic to have the matter amicably resolved. Should the talks fail, we have been told Stanbic could take the matters to the tax appeals tribunal.
Stanbic remains one of the top taxpayers in the country. In 2024, Stanbic Uganda paid Shs 427.8 billion in taxes, surpassing the Shs 355 billion it paid in 2023.
As of December 31 2024, the bank’s total assets were valued at Sh10.4 trillion ($2.852 billion). In 2024, the bank made an after-tax profit of Shs 478 billion ($131.104 million).
