In Uganda, both individuals and businesses are subject to various taxes, each with specific filing requirements and deadlines. Key taxes include:
- Income Tax: Levied on earnings such as employment, business, rental, and other forms of income.
- Pay As You Earn (PAYE): A withholding tax on employment income, deducted by employers and remitted to the Uganda Revenue Authority (URA).
- Value-Added Tax (VAT): A consumption tax of 18% on most goods and services, with zero-rated items like food and medicines.
- Local Service Tax: Imposed on businesses providing services within local government areas.
- Excise Duty: Applied to specific goods like alcohol, tobacco, and fuel.
Taxpayer Categories in Uganda:
- Individuals: Subject to income tax, PAYE, and other relevant taxes.
- Businesses: Required to pay income tax, VAT, local service tax, and excise duties.
Filing and Compliance:
- Income Tax Returns: Due by December 31st for the previous tax year.
- VAT Returns: Filed monthly, with a deadline on the 15th of the following month.
- PAYE: Must be remitted by the 15th of the month following the tax period.
Maintaining compliance with tax laws is crucial, as non-compliance can lead to penalties. Tax credits, deductions, and proper record-keeping can help reduce tax liability. Taxpayers are encouraged to consult professional tax advisors or the URA for guidance on navigating Uganda’s tax system.
