Pension: Pension is tax exempt

Medical Expenses: Payment on receiving medical attention or refund to the employee, the amount of money spent to receive medical attention.

Life Insurance: Premiums paid by a taxable employer for insurance of life of an employee or his/her dependant (s)

Official employment expenditure: Allowances for discharge or refund on amount spent by an employee while performing duties of his employer

Meals/Refreshments: The value of meals/refreshments provided to all employees at equal terms in premises operated by or on behalf of the employer

Retirement Fund: Employer’s contribution to a retirement fund for the benefit of the employee (employee’s contribution is taxable)

Shares: The value of a right or option to acquire shares granted to an employee under an employee share acquisition scheme.

Local Service Tax: This is deductible before computing tax.

Other benefits: Any benefit whose total value is less than Ugx 10,000 during the month

Threshold: The first Ugx 235,000 per month is tax free for all resident employees

Terminal benefits: 25% of terminal benefits (for employees who have served the employer for at least 10 years)

Transport Costs: Cost of passage incurred by the employer in respect of employee’s appointment if recruited out of Uganda for employer’s sole purpose (only applies to non-Ugandans)

Passage Costs: Allowances/Reimbursement of the actual cost of accommodation and travel, meals and refreshments in the course of employment duties.

This is facilitation directly/indirectly by an employer to an employee in relation to past, present or future employment (may not necessarily be included in the contract). A benefit in kind is one provided by an employer, third party of an employer or associate of an employer.

• Use of official motor vehicle for private purposes
• Provision of domestic servants, utilities, house keeper, driver
• Meals, refreshments and entertainment
• Relief or debt obligations/interest waiver of obligation of employee by the employer
• Provision of property by an employer to an employee (at non-arm’s length terms)
• Provision of residential accommodation
• Difference between interest at statutory rate and rate at which loans are granted
• Any other benefit provided by the employer

A benefit need not be provided by the employer or provided to the employee. It can be provided by the associate of the employer or can be provided to an associate of the employee.