Education is the transmission of knowledge, skills, and character traits through formal or informal methods. In Uganda, formal education is acquired through academic institutions, i.e. primary schools, secondary schools, technical institutions, and universities.

Education services means education provided by

1. a pre-primary, primary, or secondary school
2. a technical college or university
3. an institution established for the promotion of adult education, vocational training, technical education, or the education of training of physically or mentally hand-capped persons

Government-aided institutions.

• Pay As You Earn (PAYE) from employees
• Withholding tax (WHT) from suppliers and professional services

Privately owned institutions

• Corporation tax from the institution
• Individual Income tax from directors
• Pay As You Earn (PAYE) from employees
• Withholding tax (WHT) from suppliers and professional services

All businesses in Uganda are required to register with the Uganda Registration Service Bureau (URSB) to formalize their legal status.

Upon registration, education services’ entities are required to comply with the requirements of statutory bodies like:

• Ministry of Education and sports to get an operational license
• KCCA/Local government for a trading license
• Registration with URA for taxes (acquiring a TIN)
• National Council for Higher Education (NCHE) for accreditation of institutions of higher learning

For individual

• National ID or any other two of the following valid identification documents;  Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card etc.
• Certificate of registration (incase you are in business)
• Statement of particulars and partnership deeds (incase of a partnership)

For non-individual

• Company Form 20
• Certificate of incorporation

Click here for details on requirements for registration of your school proprietorship business

• You’re required to visit the URA portal on ura.go.ug
• Click hereto register for an individual
• Click here to register as a non-individual

Click here for your rights  as a taxpayer

Click here for your  obligations as a taxpayer

Government-aided institutions.

• Pay As You Earn (PAYE) from employees
• Withholding tax (WHT) from suppliers and professional services

Privately owned institutions

• Corporation tax from the institution
• Individual Income tax from directors
• Pay As You Earn (PAYE) from employees
• Withholding tax (WHT) from suppliers and professional services

Income tax

Any person dealing in education services business is required to be registered for income tax. Income tax applies generally to all types of persons who derive income, whether an individual, company, partnership or trust.

Corporation tax. This is tax payable by non-individuals at a standard rate of 30% of profits earned.

Rate of tax for Resident individuals

Click here for individual income tax rates

Pay As You Earn (PAYE)

Any person dealing in education services business and offers employment is required to be registered for Pay As You Earn (PAYE). This tax can be withheld from both teaching and non-teaching staff who earn above UGX 235,000.

Please note: Each employee must register for taxes i.e. acquisition of a TIN

Click here for PAYE rates for both resident and non-resident persons.

Withholding tax (WHT)

Withholding tax (WHT) is a form of income tax and is withheld at source by a designated withholding tax agent upon making payment to another person (payee). If an education institution receives supplies exceeding UGX 1,000,000, it is required to withhold at source at a rate of 6% which is later remitted to URA.

Please note: Each supplier has to be registered for taxes i.e. acquisition of a TIN

Click here for more information on Withholding tax.

Value Added Tax (VAT)

Note: Education services are VAT exempt supplies. This implies that education services are not Vatable.

Click here for more information on VAT

These returns are filed like any other Income tax returns

Click here for information on return filing

After filing a return, you’re required to pay the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.

Please note: the due date for payment of tax is the same as that of return filing.

Click here to register a payment