On 11th October 2022, the Uganda Revenue Authority (URA) issued a public notice informing the public about changes to the PAYE and VAT return forms. On 12th October 2022, URA issued another notice clarifying the change relating to the PAYE return form.

See both notices below:

Uganda: Clarification on changes in PAYE Return - October 2022

According to the public notice, the change will apply to secondary employees whose chargeable income exceeds UGX 10,000,000 per month. Secondary employees are those who have more than one employer.

This change will require a tax file and PAYE return template change.

In the updated PAYE return template, this change is being implemented under schedule 1 as follows in respect to secondary employees:

• If the amount is UGX 10 million or below, a fixed rate of 30% is applied.
• If the amount is more than UGX 10 million, a fixed rate of 40% is applied.

Monthly

 Example

• Secondary employee earns UGX9 000 000. Tax at 30% is UGX2 700 000.
• Secondary employee earns UGX10 000 000. Tax at 30% is UGX3 000 000.
• Secondary employee earns UGX12 000 000. Tax at 40% is UGX4 800 000.

Update: The new tax file is available - click here for more information.