Uganda Personal Income Tax

Personal income tax bands — resident individuals

Resident individuals are taxed on a progressive monthly PAYE scale set in the Third Schedule of the Income Tax Act, with a tax-free threshold and a high-earner surcharge. Bands below are expressed as monthly chargeable income in UGX.

• Monthly income not exceeding UGX 235,000 — 0% (tax-free threshold) % (Income Tax Act (Cap 340), Third Schedule)
• Monthly income UGX 235,001 – 335,000 — 10% of the amount over UGX 235,000 % (Income Tax Act (Cap 340), Third Schedule)
• Monthly income UGX 335,001 – 410,000 — UGX 10,000 plus 20% of the amount over UGX 335,000 % (Income Tax Act (Cap 340), Third Schedule)
• Monthly income UGX 410,001 – 10,000,000 — UGX 25,000 plus 30% of the amount over UGX 410,000 % (Income Tax Act (Cap 340), Third Schedule)
• Additional surcharge on monthly income exceeding UGX 10,000,000 — An extra 10% on the amount over UGX 10,000,000 (in addition to the 30% band) % (Income Tax Act (Cap 340), Third Schedule)
• Annual tax-free threshold (resident) — UGX 2,820,000 per year (UGX 235,000 x 12) UGX (Income Tax Act (Cap 340), Third Schedule)

Personal income tax bands — non-resident individuals

Non-resident individuals do not get the tax-free threshold; the first band is taxed at 10%. Bands are monthly chargeable income in UGX.

• Monthly income not exceeding UGX 335,000 — 10% % (Income Tax Act (Cap 340), Third Schedule)
• Monthly income UGX 335,001 – 410,000 — UGX 33,500 plus 20% of the amount over UGX 335,000 % (Income Tax Act (Cap 340), Third Schedule)
• Monthly income UGX 410,001 – 10,000,000 — UGX 48,500 plus 30% of the amount over UGX 410,000 % (Income Tax Act (Cap 340), Third Schedule)
• Additional surcharge on monthly income exceeding UGX 10,000,000 — An extra 10% on the amount over UGX 10,000,000 % (Income Tax Act (Cap 340), Third Schedule)

Residence test, deductions and filing

Residence is determined chiefly by physical presence in Uganda. Employees taxed only under PAYE generally have no further filing obligation, while individuals with other income file an annual return.

• Residence test (physical presence) — Present in Uganda for 183 days or more in a 12-month period (or has a permanent home in Uganda; certain government officials are deemed resident) (Income Tax Act (Cap 340))
• Individual annual return deadline — Within 6 months after the end of the year of income (i.e. by 31 December for a 30 June year-end) (Income Tax Act (Cap 340))
• PAYE as final tax for employees — Employment income taxed under PAYE is generally a final tax where the employee has no other income (Income Tax Act (Cap 340))
• Treatment of employee NSSF contributions — Employee NSSF contributions are not deductible for PAYE; PAYE is computed on gross employment income (confirm current rule) ((approx — confirm)) (Income Tax Act (Cap 340))
• Mortgage interest relief — No general personal deductions or family allowances; relief is limited to specific items in the Act (confirm any owner-occupier mortgage relief) ((approx — confirm)) (Income Tax Act (Cap 340))