TYPES OF TAXES IN UGANDA
There are different types of taxes in uganda.
The taxes include; Income tax, Value Added tax, Withholding tax, Employment taxes including PAYE-Pay As You Earn, NSSF, LST (Local Service Taxes), Local Excise Duty, Stamp Duty Tax, Customs Duties, Gaming taxes.
INCOME TAX
Income tax is charged on every person who has chargeable income for the year of income. A person includes an individual, a partnership, a trust, company, retirement fund, a government political division of a government and listed institutions. Chargeable income is a person chargeable income less allowance deductions. Income tax for companies is charged at a rate of 30%. Income tax returns are required to be filed 6 months after the end of year.
VALUE ADDED TAX
Value Added Tax is charged on the supply of the taxable good or service made by the taxable person. A taxable person is a person who is registered for VAT or a person who ought to be registered for VAT. The rate for VAT is 18%. A taxable person is required to file a VAT return by 15th day of the subsequent month and pay the taxes due to the return.
Pay As You Earn
A person who pays out employment income is required to declare Pay As You Earn on the income/salary. The PAYE rate depends on the amount received by the individual but will range from 0-40%of the income earned. A PAYE return is required to be filed by the 15th day of the subsequent month and tax paid there on by the due date.
NSSF
It is required that an employment has to remit 15% of the employee to the National Social Security Fund. 10% of the amount remitted is the employer’s contribution while the 5% is the employee’s contribution. NSSF return is required to be submitted by the 15th day of the subsequent month and the amount due paid.
LOCAL SERVICE TAX
Local service tax is paid by the employer to the relevant local government council. The annual tax charged does not exceed 100,000/= Uganda shillings and is paid in the month of July, August, September & October. Local service tax is an allowable deduction for purposes of computing PAYE.
WITHHOLDING TAX
Withholding tax is a tax charged on a person who provides professional services. Any person who makes a payment for professional services is required to deduct withholding tax from the payment. A person who is designated as a withholding tax agent is required to deduct tax on payment of supplies of goods and services of 1 million Uganda shillings and above unless the supplier is specifically exempted from the withholding tax. The withholding tax on local supplies is 6% while for imported supplies is 15%. A withholding return is required to be filed by the 15th of the subsequent month and tax due paid there on.
LOCAL EXCISE DUTY
Local excise duty is required to be declared on the supply of an excisable good or service. The rate of the excisable good or service depends on the specific good or service i.e. ;( cigarettes – 200%, malt beer- 60% or Ush. 2050 per litre, mineral water 10% or Ush.50%, internet data -12%)
STAMP DUTY
Stamp duty is charged at different rates on instruments which are specifically provided for under the stamp duty Act
GAMING TAX
An operator of a casino, gaming or betting activity is required to declare gaming taxes. The tax charged is 20% of the total amount of the money staked less than the pay outs or winnings for the period of filing returns for a betting activity.
30% of the total amount of the money staked less than the pay outs or winnings for the period of filing returns for the gaming activity. The return is to be filed by the 15th of the subsequent month and the tax paid there on.