PAYE Return
Pay As You Earn (PAYE) is deducted by the employer from the employment income of every qualifying employee monthly and remitted to the Uganda Revenue Authority.
| Statutory Obligation | Tax rate | |
| PAYE Return | Monthly Chargeable Income |
Rate of tax |
| Resident Persons; | ||
| Not exceeding Shs. 235,000 | Nil | |
| Exceeding Shs. 235,000 but not exceeding Shs. 335,000 | 10% of the amount by which chargeable income exceeds Shs. 235,000 per month | |
| Exceeding shs.335,000 but not exceeding Shs. 410,000 | Shs. 10,000 plus 20% of the amount by which chargeable income exceeds Shs. 335,000 | |
| Exceeding Shs. 410,000 | a) shs. 25,000 plus 30% of the amount by which chargeable income exceeds Shs. 410,000; and
b) Where the chargeable income of an individual exceeds Shs 10,000,000 per month, an additional 10% is charged on the amount by which 4 Withholding Tax 2022-23 the chargeable income exceeds Shs. 10,000,000 per month |
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| Non-Resident persons; | ||
| Not exceeding Shs. 335,000 | 10% | |
| Exceeding Shs. 335,000 but not exceeding Shs. 410,000 | Shs. 33,500 plus 20% of the amount by which chargeable income exceeds Shs. 335,000 | |
Withholding Tax
Withholding tax (WHT) is a form of income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). This tax is deducted at source and remitted to URA in advance by the withholding agent.
| Withholding Tax | Nature of good/ service | Rate of tax | Due Date |
| Professional fees payment made to a resident person | 6% of the gross amount | Within the first 15 days of the following month. | |
| Payments for winnings of sports betting or pool betting | 15% tax on the gross amount | ||
| Where the Government of Uganda; a government institution; a local authority; a company in which the Government has interest or any person designated in a notice issued by the Minister of Finance, pays amounts in aggregate exceeding one million shillings to any person in Uganda for the supply of goods, materials of any kind or services | 6% of the gross amount paid. | ||
| Tax on imports except imports by organizations or persons exempt from tax | 6% on the customs value of the goods. | ||
| Tax on dividends | 15% of the gross amount paid | ||
| Tax on international payments | 15% of the gross amount paid | ||
| Tax on non-resident entertainers or sportspersons | 15% of the gross amount paid | ||
| Tax on payments to non-resident contractors or professionals | 15% of the gross amount | ||
| Tax on payments of re-insurance premiums | 10% on the gross amount | ||
| tax on payments of commission to mobile money dealers | 10% tax on commission given to mobile money dealers | ||
| tax on commissions to insurance and advertising agents | 10% tax on commission to insurance and advertising agents |
Other Monthly Taxes
| Statutory Obligation | Definition | Tax rate | URA Tax Filing Due Date | Penalty for Late Filing and Payment |
| Local Excise Duty Return | This is a tax charged on ‘luxury’ goods or services or specified imports and locally manufactured goods | The tax is imposed on the value of the import or the ex-factory price of the locally manufactured good | Within the first 15 days of the following month. | |
| Gaming Tax | Gaming means the playing of a game of chance for winnings in money or money’s worth and for the avoidance of doubt, includes gambling.
Gaming tax is imposed on every licensed promoter of gaming and pool betting within Uganda and on every principal agent of every promoter of gaming and pool betting outside Uganda. |
Gaming Tax Charged at 30% on the chargeable income (Amount staked less payouts/winnings)
Betting Tax charged at 20% on the chargeable income (Amount staked less payouts/winnings) |
Within the first 15 days of the following month. | |
| Monthly VAT Return | Value Added Tax is an indirect tax on consumption charged on value-added to taxable supplies at different stages in the chain of distribution. In Uganda, VAT is imposed on the supply of goods and services (taxable supplies) made by a taxable person, other than exempt supplies and imports other than exempt imports. | Standard rated supplies are taxed at 18%, zero rated supplies are taxed at 0%, , exempt supplies do not attract VAT | Within the first 15 days of the following month. | A penal tax on unpaid tax at a rate of 2% or 200,000 per month on the amount unpaid, whichever is higher calculated from the due date until the date of payment |
| Withholding VAT | Withholding VAT is a tax mechanism that requires designated(selected) VAT Withholding Tax registered taxpayers to withhold 6% of the taxable value on all payments made to VAT registered suppliers or to persons who are not VAT registered but making a supply for an amount equivalent to or higher than Ushs 37,500,000 (one quarter of the annual VAT registration threshold). | 6% of the 18% VAT amount | Within the first 15 days of the following month | |
| NSSF Return | NSSF is a provident Fund that covers all employees in the private sector that are not covered by the government’s pension scheme. | 5% Employee Contribution on gross pay, 10% Employer Contribution on gross pay | Within the first 15 days of the following month | Interest at a rate of 10% on the amount unpaid, calculated from the date on which the payment was due until the date of payment |
Annual Tax Obligations
| Statutory Obligation | Definition | Tax rate | URA Tax Filing Due Date | Penalty for Late Filing and Payment |
| 1st Provisional Return for Non-Individual | The provisional return is an estimate of what a company’s financial performance for the tax period will be.
A second provisional return can be filed by the last day of the financial year in case there is a change in estimates made in the first provisional return. |
50% of the assesses tax |
Within the first 6 months of the financial year of income
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A penal tax on unpaid tax at a rate of 2% or 200,000 per month on the amount unpaid, whichever is higher calculated from the due date until the date of payment |
| 2nd Provisional Return for Non-Individual | Within the last 6 months of the financial year of income
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| Annual Income Tax for Non-Individual | This is a true financial position of the company’s performance for the tax period. | 30% of the Chargeable income | Within the first 6 months after the financial year of income
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| Provisional Income Tax Return for Individual | The provisional return is an estimate of what an individual’s financial performance for the tax period will be. | 25% of the assessed tax in four instalments | Within the first 3 months of the year of Income | |
| Final Income Tax for Individual | This is a true financial position of an individual’s performance for the tax period. | PAYE Tax Rates | Within the first 6 months after the year of Income |
Other Statutory Obligations
| LST | This is a tax levied on wealth and incomes of all persons in gainful employment, self –employed and practicing professionals, self-employed artisans, business men/women and commercial farmers. | Tax charged is as per the Local Council Authority Schedule payable once a year | Within the first 4 months of every financial year |
