First Schedule (s. 2)
Listed institutions
African Development BankAfrican Development FundAga Khan FoundationEast African Development BankEastern and Southern African Trade and Development BankEuropean Development FundEuropean Investment BankEuropean UnionFood and Agriculture OrganisationInternational Bank for Reconstruction and DevelopmentInternational Civil Aviation OrganisationInternational Development AssociationInternational Finance CorporationInternational Labour OrganisationInternational Monetary FundInternational Telecommunications UnionUnited Nations related agencies and specialised agencies
Second Schedule (s. 4)
Small business taxpayers tax rates
1. The amount of tax payable for the purposes of section 4(5) by a taxpayer is—Gross turnover |
Tax |
---|
Where the gross turnover of the taxpayer does not exceed shs. 20 million per year |
Shs. 100,000 |
Where the gross turnover of the taxpayer exceeds shs. 20 million but does not exceed shs. 30 million per year |
Shs. 250,000 or 1% of gross turnover, whichever is the lower |
Where the gross turnover of the taxpayer exceeds shs. 30 million but does not exceed shs. 40 million per year |
Shs. 350,000 or 1% of gross turnover, whichever is the lower |
Where the gross turnover of the taxpayer exceeds shs. 40 million but does not exceed shs. 50 million per year |
Shs. 450,000 or 1% of gross turnover, whichever is the lower |
2. The tax payable by a taxpayer under section 4(5) is reduced by—(a)any credit allowed under section 128(3) for withholding tax paid in respect of amounts included in the gross turnover of the taxpayer; or(b)any credit allowed under section 111(8) for provisional tax paid in respect of amounts included in the gross turnover of the taxpayer.
Third Schedule (ss. 6, 7, 8, 82, 83, 84, 85, 86, 117, 118, 119)
Rates of tax
Part I – Income tax rates for individuals (s. 6(1))
1. The income tax rates applicable to resident individuals are—Chargeable income |
Rate of tax |
---|
Not exceeding shs. 1,560,000 |
Nil |
Exceeding shs. 1,560,000 but not exceeding shs. 2,820,000 |
10% of the amount by which chargeable income exceeds shs. 1,560,000 |
Exceeding shs. 2,820,000 but not exceeding shs. 4,920,000 shs. |
Shs. 126,000 plus 20% of the amount by which chargeable income exceeds shs. 1,560,000 |
Exceeding shs. 4,920,000 |
Shs. 546,000 plus 30% of the amount by which chargeable income exceeds shs. 4,920,000 |
2. The income tax rates applicable to nonresident individuals are—Chargeable income |
Rate of tax |
---|
Not exceeding shs. 2,820,000 |
10% |
Exceeding shs. 2,820,000 but not exceeding shs. 4,920,000 |
Shs. 282,000 plus 20% of the amount by which chargeable income exceeds shs. 2,820,000 |
Exceeding shs. 4,920,000 |
Shs. 702,000 plus 30% of the amount by which chargeable income exceeds shs. 4,920,000 |
Part II – Income tax rate for companies (s. 7)
1.The income tax rate applicable to companies, other than mining companies, for the purposes of section 7 is 30 percent.2.Subject to paragraphs (3) and (4), the income tax rate applicable to mining companies is calculated according to the following formula—70 - 1500/X where X is the number of the percentage points represented by the ratio of the chargeable income of the mining company for the year of income to the gross revenue of the company for that year.3.If the rate of tax calculated under paragraph 2 exceeds 45 percent, then the rate of tax shall be 45 percent.4.If the rate of tax calculated under paragraph 2 is less than 25 percent, then the rate of tax shall be 25 percent.5.In this Part—(a)“gross revenue”, in relation to a mining company for a year of income, means—(i)the amount shown in the recognised accounts of the company as the gross proceeds derived in carrying on of mining operations during the year of income, including the gross proceeds arising from the disposal of trading stock, without deduction for expenditures or losses incurred in deriving that amount; and(ii)the amount, if any, shown in the recognised accounts of the taxpayer as the amount by which the sum of the gains derived by the taxpayer during the year of income from the disposal of business assets used or held ready for use in mining operations, other than trading stock, exceeds the sum of losses incurred by the taxpayer during the year in respect of the disposal of such assets; and(b)“mining company” means a company carrying on any mining operations in Uganda.Part III – Income tax rate for trustees and retirement funds (s. 8)
The income tax rate applicable to trustees and retirement funds for the purposes of section 8 is 30 percent.Part IV – Income tax rate for nonresident persons (ss. 82, 83, 84 and 85)
The income tax rate applicable to a nonresident person under section 82, 83, 84 or 85 is 15 percent.Part V – Withholding tax rate for interest and dividends for resident persons (ss. 117, 118)
The withholding tax rate applicable for interest and dividend payments to a resident person under sections 117 and 118 is 15 percent.Part VI – Rate of rental tax (s. 6(2))
The rate of tax applicable to an individual for the purposes of section 6(2) is 20 percent of the chargeable income in excess of shs. 1,560,000.Part VII – Rate of tax applicable to shipping and aircraft income (s. 86(2))
The rate of tax applicable to shipping and aircraft income under section 86(2) is 2 percent.Part VIII – Withholding tax rate for goods and services transactions (s. 119)
The withholding tax rate applicable for goods and services transactions and for imported goods under section 119 is 4 percent.
Fourth Schedule (s. 16)
Chargeable income arising from short-term insurance business
1.The chargeable income of a resident person for a year of income arising from the carrying on of a short-term insurance business is determined according to the following formula—A - B where—A is the total income derived by the resident person for the year of income in carrying on a short-term insurance business as determined under paragraph 2; andB is the total deduction allowed for the year of income in the production of income referred to in A as determined under paragraph 3.2.The total income derived by a resident person for a year of income in carrying on a short-term insurance business is the sum of—(a)the amount of the gross premiums, including premiums on reinsurance, derived by the person during the year of income in carrying on such a business in respect of the insurance of any risk, other than premiums returned to the insured;(b)the amount of any other income derived by the person during the year of income in carrying on such a business, including any commission or expense allowance derived from reinsurers, any income derived from investments held in connection with such a business and any gains derived on disposal of assets of the business; and(c)the amount of any reserve deducted in the previous year of income under paragraph 3(d).3.The total deduction allowed for a year of income in the production of income from the carrying on of a short-term insurance business is the sum of—(a)the amount of the claims admitted during the year of income in the carrying on of such a business, less any amount recovered or recoverable under any contract of reinsurance, guarantee, security or indemnity;(b)the amount of agency expenses incurred during the year of income in the carrying on of such a business;(c)the amount of expenditures and losses incurred by the person during the year of income in carrying on that business which are allowable as a deduction under this Act, other than expenditures or losses referred to in paragraphs (a) and (b); and(d)the amount of a reserve for unexpired risks referable to such a business at the percentage adopted by the company at the end of the year of income.4.Where, for any year of total income, the total deduction allowed to a person under paragraph 3 exceeds the income derived by the person as determined under paragraph 2, the excess may not be deducted against any other income of the person for the year of income, but shall be carried forward and deducted in determining the chargeable income of the person arising from the carrying on of a short-term insurance business in the next year of income5.The chargeable income of a nonresident person for a year of income arising from the carrying on of a short-term insurance business in Uganda is determined according to the following formula—A - B where—A is the total income derived by the person for the year of income in carrying on a short-term insurance business as determined under paragraph 6; andB is the total deduction allowed for the year of income in the production of income referred to in A as determined under paragraph 7.6.The total income derived by a nonresident person for a year of income in carrying on a short-term insurance business in Uganda is the sum of—(a)the amount of the gross premiums, including premiums on reinsurance, derived by the person during the year of income in carrying on such a business in respect of the insurance of any risk in Uganda, other than premiums returned to the insured;(b)the amount of any other income derived by the person during the year of income in carrying on such a business in Uganda, including—(i)any commission or expense allowance derived from reinsurance of risks accepted in Uganda;(ii)any income derived from investment of the reserves referable to such business carried on in Uganda; and(iii)any gains derived on disposal of assets of the business, and(c)the amount of any reserve deducted in the previous year of income under paragraph 7(d).7.The total deduction allowed for a year of income in the production of income from the carrying on of a short-term insurance business in Uganda by a nonresident person is the sum of—(a)the amount of the claims admitted during the year of income in the carrying on of such a business, less any amount recovered or recoverable under any contract of reinsurance, guarantee, security or indemnity;(b)the amount of agency expenses incurred during the year of income in the carrying on of such a business;(c)the amount of expenditures and losses incurred by the person during the year of income in carrying on that business which are allowable as a deduction under this Act, other than expenditures or losses referred to in paragraphs (a) and (b); and(d)the amount of a reserve for unexpired risks in Uganda referable to such a business at the percentage adopted by the company at the end of the year of income.8.Where, for any year of total income, the total deduction allowed to a person under paragraph 7 exceeds the income derived by the person as determined under paragraph 6, the excess may not be deducted against any other income of the person for the year of income, but shall be carried forward and deducted in determining the chargeable income of the person arising from the carrying on of a short-term insurance business in Uganda in the next year of income.
Fifth Schedule (s. 19(3))
Valuation of benefits
1.The valuation of benefits for the purposes of section 19(3) of this Act shall be determined in accordance with this Schedule2.For the purposes of this Schedule, a benefit provided by an employer to an employee means a benefit that—(a)is provided by an employer, or by a third party under an arrangement with the employer or an associate of the employer;(b)is provided to an employee or to an associate of an employee; and(c)is provided in respect of past, present or prospective employment.3.Where a benefit provided by an employer to an employee consists of the use, or availability for use, of a motor vehicle wholly or partly for the private purposes of the employee, the value of the benefit is calculated according to the following formula—(20% x A x B/C) - D where—A is the market value of the motor vehicle at the time when it was first provided for the private use of the employee;B is the number of days in the year of income during which the motor vehicle was used or available for use for private purposes by the employee for all or a part of the day;C is the number of days in the year of income; andD is any payment made by the employee for the benefit.4.Where a benefit provided by an employer to an employee consists of the provision of a housekeeper, chauffeur, gardener or other domestic assistant, the value of the benefit is the total employment income paid to the domestic assistant in respect of services rendered to the employee, reduced by any payment made by the employee for the benefit5.Where a benefit provided by an employer to an employee consists of the provision of any meal, refreshment or entertainment, the value of the benefit is the cost to the employer of providing the meal, refreshment or entertainment, reduced by any consideration paid by the employee for the meal, refreshment or entertainment6.Where a benefit provided by an employer to an employee consists of the provision of utilities in respect of the employee’s place of residence, the value of the benefit is the cost to the employer of providing the utilities reduced by any consideration paid by the employee for the utilities7.Where a benefit provided by an employer to an employee consists of a loan or loans in total, exceeding one million shillings at a rate of interest below the statutory rate, the value of the benefit is the difference between the interest paid during the year of income, if any, and the interest which would have been paid if the loan had been made at the statutory rate for the year of income8.Where a benefit provided by an employer to an employee consists of the waiver by an employer of an obligation of the employee to pay or repay an amount owing to the employer or to any other person, the value of the benefit is the amount waived9.Where a benefit provided by an employer to an employee consists of the transfer or use of property or the provision of services, the value of the benefit is the market value of the property or services, reduced by any payment made by the employee for the benefit10.Where a benefit provided by an employer to an employee consists of the provision of accommodation or housing, other than where section 19(1)(a) or (c) applies, the value of the benefit is the lesser of—(a)the market rent of the accommodation or housing reduced by any payment made by the employee for the benefit; or(b)15 percent of the employment income, including the amount referred to in paragraph (a), paid by the employer to the employee for the year of income in which the accommodation or housing was provided.11.The value of any benefit provided by an employer to an employee which is not covered by the above clauses is the market value of the benefit, reduced by any payment made by the employee for the benefit12.Paragraph 11 does not apply to any benefit expressly covered by section 19(1)(a) or (c) to (h)13.In this Schedule, “statutory rate”, in relation to a year of income, means the Bank of Uganda discount rate at the commencement of the year of income
Sixth Schedule (ss. 27, 28, 29)
Depreciation rates and vehicle depreciation ceiling
Part I – Declining balance depreciation rates for depreciable assets
Class |
Assets included |
Depreciation rate |
---|
1 |
Computers and data handling equipment |
40% |
2 |
Automobiles; buses and minibuses with a seating capacity of less than 30 passengers; goods vehicles with a load capacity of less than 7 tonnes; construction and earth moving equipment |
35% |
3 |
Buses with a seating capacity of 30 or more passengers; goods vehicles designed to carry or pull loads of more than 7 tonnes; specialised trucks; tractors; trailers and trailer-mounted containers; plant and machinery used in farming, manufacturing or mining operations |
30% |
4 |
Railroad cars, locomotives and equipment; vessels, barges, tugs and similar water transportation equipment; aircraft; specialised public utility plant, equipment and machinery; office furniture, fixtures and equipment; any depreciable asset not included in another class |
20% |
Part II – Vehicle depreciation ceiling
The amount for the purposes of section 27(11) is shs. 30,000,000.Part III – Straight-line depreciation rate for industrial buildings
The depreciation rate for the purposes of section 29 is 5 percent.Part IV – Prescribed areas
The following areas are prescribed for the purposes of section 28: Kampala, Entebbe, Namanve, Jinja and Njeru.
Seventh Schedule (s. 2)
Currency point
One currency point is equivalent to twenty thousand Uganda shillings.