Taxation of international executives.
When are tax returns due? That is, what is the tax return due date?
What is the tax year-end?
What are the compliance requirements for tax returns in Uganda?
Pay as You Earn (PAYE) - Filing by the employer is on a monthly basis by the 15th day of the month subsequent to the month in which payment was made.
Individual Income Tax returns are filed by 30th September (1st Provisional return), 30th June (amended provisional Return) and by the end of six months after the end of the year (Final Return) Please note that the provisional tax is paid in four installments on a quarterly basis.
Rental income is taxed separately from other incomes earned. The tax on rental income is also paid on a quarterly basis as with the individual income tax returns.
As stated above.
As stated above.
What are the current income tax rates for residents and non-residents in Uganda?
Local Service Tax
This is deducted within the first quarter of the Individual's fiscal year (1st July to 30th June). This may be submitted either as a lumpsum by the 30th day of October or in 4 equal installments for the month of July, August, September and October.
Local Service Tax rates
|Amount of monthly income||LST payable
|earned net of tax (UGX)||per year (UGX)|
|1||>UGX100,000 but <UGX200,000||UGX5,000|
|2||>UGX200,000 but <UGX300,000||UGX10,000|
|3||>UGX300,000 but <UGX400,000||UGX20,000|
|4||>UGX400,000 but <UGX500,000||UGX30,000|
|5||>UGX500,000 but <UGX600,000||UGX40,000
|6||>UGX600,000 but <UGX700,000||UGX60,000|
|7||>UGX700,000 but <UGX800,000||UGX70,000|
|8||>UGX800,000 but <UGX900,000||UGX80,000|
|9||>UGX900,000 but <UGX1,000,000||UGX90,000|
|10||>UGX1,000,000 and above||UGX100,000|
Income tax table for 2016
Resident individual rates
|Chargeable income||Rate of Tax|
|Not exceeding Ushs. 235,000 per month||Nil|
|Exceeding Ushs. 235,000 per month but not exceeding Ushs. 335,000 per month||10% on the amount exceeding Ushs 235,000|
|Exceeding Ushs. 335,000 but not exceeding 410,000 per month||Ushs. 10,000 per month plus 20% of the amount exceeding Ushs.335,000 per month|
|Exceeding Ushs. 410,000||
Ushs. 25,000 plus 30% of the amount exceeding Ushs. 410,000; and
Where the chargeable income of an individual exceeds 10,000,000, an additional 10% on the amount exceeding Ushs 10,000,000 per month
Non resident individual rates
|Chargeable income||Rate of Tax|
|Not exceeding 335,000 per month||10%|
|Exceeding Ushs 335,000 per month but not exceeding Ushs. 410,000||Ushs 33,500 plus 20% of the amount by which the amount exceeds Ushs. 335,000|
|Exceeding Ushs 410,000||
Ushs. 48,500 plus 30% of the amount exceeding Ushs. 410,000; and
Where the chargeable income of an individual exceeds Ushs. 10,000,000, an additional 10% on the amount exceeding Ushs 10,000,000 per month.
For the purposes of taxation, how is an individual defined as a resident of Uganda?
The rate of tax applicable to an individual depends on their residency status. The Ugandan Income Tax Act, Cap 340 states that for an individual to be considered a resident person, they should;
A person is not resident if they do not meet the parameters for a resident individual.
Is there a de minimus number of days rule when it comes to residency start and end date? For example, a taxpayer can’t come back to the host country for more than 10 days after their assignment is over and they repatriate.
What if the assignee enters the country before their assignment begins?
Are there any tax compliance requirements when entering or leaving the country?
When leaving the country, an individual is required to de register for taxes and obtaining a tax credit certificate would be appropriate as evidence that his/her income was taxed while in Uganda.
What if the assignee comes back for a trip after residency has terminated?
There is no restriction, however the assignee would be requited to obtain a tourist visa.
Do the immigration authorities in Uganda provide information to the local taxation authorities regarding when a person enters or leaves Uganda?
The taxation authorities may communicate to the immigration authorities if the assignee has some taxes to be paid to the Taxation authority.
Will an assignee have a filing requirement in the host country after they leave the country and repatriate?
Do the taxation authorities in Uganda adopt the economic employer approach to interpreting Article 15 of the OECD treaty? If no, are the taxation authorities in Uganda considering the adoption of this interpretation of economic employer in the future?
Are there a de minimus number of days before the local taxation authorities will apply the economic employer approach? If yes, what is the de minimus number of days?
What categories are subject to income tax in general situations?
Employment income including benefits of any kind provided to the assignee by virtue of their employment in the company. The taxable benefits include;
Are there any areas of income that are exempt from taxation in your country? If so, please provide a general definition of these areas.
Are there any concessions made for expatriates in your country?
Is salary earned from working abroad taxed in Uganda If so, how?
No, if it has been taxed abroad.
Are investment income and capital gains taxed in your country? If so, how?
The individuals are taxed basing on individual income tax rates as stated above
Capital gains are taxed together with other income basing on individual income tax rates as stated above.
Are there capital gains tax exceptions in your country? If so, please discuss.
Assets are deemed to be disposed when the asset has been;
What are the general deductions from income allowed in your country?
These are expenses wholly ans exclusivelty incurred in the generation of income included in gross income.
What are the tax reimbursement methods generally used by employers in your country?
Tax reimbursemets are processed by the tax authorities in the event that it can be demonstrated that an employee was over taxed due to interpretation. However, if the over taxation was due to an error by the employer, such error can be corrected by the employer and the employee tax refunded by the employer.
How are estimates/prepayments/withholding of tax handled in your country? For example, Pay-As-You-Earn (PAYE), Pay-As-You-Go (PAYG), and so on.
There are no estimates for employee taxes
When are estimates/prepayments/withholding of tax due in your country? For example, monthly, annually, both, and so on.
Is there any Relief for Foreign Taxes in your country? For example, a foreign tax credit (FTC) system, double taxation treaties, and so on?
Yes, to the extent that the foreign tax was paid and does not exceed the tax that would have ordinarily been paid had the income been earned in Uganda.
What are the general tax credits that may be claimed in your country? Please list below.
Provisional tax paid