What is Pay As You Earn (PAYE)?
This is tax on the total monthly income (salary and other payments) of an employee (totaling above Ugx 335,000). It is paid to URA by the employer on behalf of the employee.
Please note: The PAYE rates are applied based on the person’s resident status.
An individual is considered a resident if s/he;-
- has a permanent home in Uganda or is employed by the government of Uganda and is posted abroad
- is present in Uganda for a total of 183 days or more in a financial year
- is present in Uganda for more than 122 days in the financial year and the two previous years
Please note: An individual who does not meet the resident criteria specified above is considered “A non-resident”
|
TAXABLE INCOME (MONTHLY) (UGX) |
RATE OF TAX |
|
RESIDENTS |
|
|
0 to 335,000 |
Nil |
|
335,001 to 410,000 |
20% x (Taxable Income – 335,000UGX) |
|
410,001 to 485,000 |
15,000+25% x (Taxable Income – 410,000UGX) |
|
485,001 to 10,000,000 |
33,750+30% x (Taxable Income – 485,000UGX) |
|
Above 10,000,000 |
33,750 + 30% x (Taxable Income – 485,000UGX) + 10% x (Taxable Income – 10,000,000UGX) |
|
TAXABLE INCOME (MONTHLY) UGX |
RATE OF TAX |
|
NON–RESIDENTS. |
|
|
0 to 335,000 |
Taxable Income x 10% |
|
335,000 to 410,000 |
(Taxable Income – 335,000UGX) x 20% + 33,500UGX |
|
410,000 to 10,000,000 |
(Taxable Income – 410,000UGX) x 30% + 48,500UGX |
|
Above 10,000,000 |
[(Taxable Income – 410,000UGX) x 30% + 48,500UGX] +[( Taxable Income – 10,000,000UGX) x 10%] |
- Employees who are employed in more than one place are taxed at a flat rate of 30% of the total employment income
- An employee aggrieved by this treatment may submit a return of emoluments from all sources and make a claim of tax overpaid.
For more information, visit the nearest URA office for assistance or call the toll-free lines 0800117000/0800217000 or WhatsApp: 0772140000
