Uganda

Social security contributions

An individual in employment is obligated to make a contribution of 5% of one’s gross earnings to the national social security fund.

An individual who is an employer is also obligated to make contributions to the national social security fund for each employee, amounting to 10% of their gross pay.

Local Service Tax

An individual in employment is obligated to pay Local Service Tax to the Town Council where one resides. 

According to the Local Service Tax Act and guidelines for the implementation of the Local Service Tax, an individual who is an employer is required to determine and deduct the Local Service Tax from the salaries and wages of their employees within a period of four months not later than the 15th day of November.

Consumption taxes

Value-added tax (VAT)

VAT is charged on taxable supplies made by taxable persons, the importation of goods other than in cases of exempt imports, and imported services by any person. The standard VAT rate is 18%; some items are zero rated and others are exempt.

In cases of supplies of taxable products, the VAT is paid by the person making the supply. In cases of importation of goods, the VAT is paid by the importer. In cases of imported services, the VAT is paid by the person importing the services. If an individual falls in any of these categories one is expected to file a return with the revenue authority and remit the VAT to the authorities.

A taxable person is one who is registered for tax purposes; a person is required to register for VAT if, within any period of three calendar months, one made taxable supplies exceeding UGX 37,500,000. In such cases, the person should register within 20 days of the year end.

VAT returns are required to be filed on a monthly basis and are due on the 15th day following the month.

Net wealth/worth taxes

There are no net wealth/worth taxes in Uganda.

Property taxes

Property taxes are administered by the local authorities annually. They are based on the value of the property as assessed by the local authorities.

Luxury and excise duties

Individuals pay excise duty on the purchase of goods subject to excise duty if, in the business of supplying such goods, they are also expected to account for the tax on the supplies made. See the Other taxes section of the Corporate tax summary for more information on goods subject to excise duties.