Uganda’s Minister of Finance Planning and Economic Development tabled Tax Amendment Bills of 2023 and The Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Bill before Parliament of Uganda for debate on 30 March 2023.

The tax amendment Bills tabled were the Income Tax; Value Added Tax; Excise Duty; The Lotteries and Gaming; and the Tax Procedures Code Amendment Bills of 2023.

Once passed into law by the Parliament and assented to by the President of the Republic of Uganda, the Bills will take effect from 01 July 2023.

The only item affecting payroll has been shared below:

Taxation of a gain from the disposal of a right or option to acquire shares under an employee share acquisition scheme

Currently, Section 19 (h) of the Income Tax Act includes the amount of any gain derived by an employee on disposal of a right or option to acquire shares under an employee share acquisition scheme in employment income and as such employment income tax (PAYE) is payable on that income. The rates of tax range from 0% to 40% of the employment income.

However, the income tax amendment bill seeks to exclude any gain from the disposal of a right or option to acquire shares under an employee share acquisition scheme from employment income.

The disposal of a right or option to acquire shares under an employee share acquisition scheme will be taxed as a disposal of assets at the rate of 5%.

Once the Bill takes effect more information will follow or be updated.