Uganda Revenue Authorities released a public notice, informing taxpayers that with effect of 4 October 2022, changes were made to the PAYE return template. For the purposes of filing September 2022 and subsequent months, taxpayers are advised to download the new and enhanced return templates from the URA web portal (www.ura.gov.ug). 

The changes on the monthly PAYE return has been implemented on Schedule 1 as follows (these changes on the return will result in changes in the tax rate for employees who are in secondary employment as detailed below):

• Where an employee who is in secondary employment, earns chargeable income less than equal to UGX 10 000 000 per month from the secondary employment a 30% tax rate is applied on the chargeable income;
• Where an employee who is in secondary employment, earns chargeable income more than UGX 10 000 000 per month from the secondary employment a 40% tax rate is applied on the chargeable income.

The above changes are applicable to resident and non-resident taxpayers. 

Please note - chargeable income is the gross income of a person for the year less total deductions allowed under the Income Tax Act Cap 340 for the year.

The above changes will be implemented on the PaySpace software soon!