Uganda Tax Tables 2020 - Tax Rates and Thresholds in Uganda
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This page contains the tax table information used for the calculation of tax and payroll deductions in Uganda in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ UG, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Uganda or would like to add to or suggest amendments to the information herein then please contact us.
2020 Tax Tables [Quick Links]
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Uganda Personal Income Tax Tables in 2020
The Income tax rates and personal allowances in Uganda are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Uganda Tax Calculator 2020.
Uganda Residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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0% | Income from UGX 0.000.00 | to | UGX 2,820,000.00 |
10% | Income from UGX 2,820,000.01 | to | UGX 4,020,000.00 |
20% | Income from UGX 4,020,000.01 | to | UGX 4,920,000.00 |
30% | Income from UGX 4,920,000.01 | to | UGX 120,000,000.00 |
40% | Income from UGX 120,000,000.01 | | and above |
Uganda Non-residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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10% | Income from UGX 0.000.00 | to | UGX 4,020,000.00 |
20% | Income from UGX 4,020,000.01 | to | UGX 4,920,000.00 |
30% | Income from UGX 4,920,000.01 | to | UGX 120,000,000.00 |
40% | Income from UGX 120,000,000.01 | | and above |
Uganda Local Service Tax Deduction Rates in 2020
Local Service Tax (LST) in Uganda is a crucial component of the country's tax system, aimed at bolstering local government finances to enhance service delivery and development at the grassroots level. This following provides a comprehensive overview of LST, exploring its definition, purposes, and importance within the Ugandan context.
Uganda Local Service Tax in 2020: Thresholds and Amounts for Employees | Amount of annual income earned | Rate of local service tax per year |
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1 | Exceeding UGX 1,200,000.00 but not exceeding UGX 2,400,000.00 | UGX 5,000.00 |
2 | Exceeding UGX 2,400,000.00 but not exceeding UGX 3,600,000.00 | UGX 10,000.00 |
3 | Exceeding UGX 3,600,000.00 but not exceeding UGX 4,800,000.00 | UGX 20,000.00 |
4 | Exceeding UGX 4,800,000.00 but not exceeding UGX 6,000,000.00 | UGX 30,000.00 |
5 | Exceeding UGX 6,000,000.00 but not exceeding UGX 7,200,000.00 | UGX 40,000.00 |
6 | Exceeding UGX 7,200,000.00 but not exceeding UGX 8,400,000.00 | UGX 60,000.00 |
7 | Exceeding UGX 8,400,000.00 but not exceeding UGX 9,600,000.00 | UGX 70,000.00 |
8 | Exceeding UGX 9,600,000.00 but not exceeding UGX 10,800,000.00 | UGX 80,000.00 |
9 | Exceeding UGX 10,800,000.00 but not exceeding UGX 12,000,000.00 | UGX 90,000.00 |
10 | Exceeding UGX 12,000,000.00 | UGX 100,000.00 |
Understanding Local Service Tax
LST is a tax levied on the income of individuals employed or engaged in business within the jurisdiction of local governments in Uganda. It is designed to be a direct contribution from residents and businesses towards the cost of local services provided by municipal authorities. LST is collected annually and is due by all income-earning residents within a local council's jurisdiction, with some exemptions based on income levels or specific criteria set by local authorities.
Compliance and Administration
The collection and administration of LST are primarily the responsibilities of local government authorities. To ensure compliance, local councils engage in awareness campaigns, educating residents and businesses about their tax obligations. The process of assessing, collecting, and managing LST is streamlined to make it as efficient as possible for taxpayers to meet their responsibilities.
Challenges and Prospects
While LST plays a critical role in local development, it faces several challenges, including issues of compliance, administrative inefficiencies, and the equitable distribution of the tax burden. Efforts are continuously made to address these challenges, including the use of technology to improve collection methods and the implementation of fair assessment policies to ensure that the tax burden is distributed appropriately.
In conclusion, Local Service Tax in Uganda is a vital tool for local development and service delivery. It not only provides necessary funds for infrastructure and services but also strengthens the bond between local governments and their constituents through shared responsibility for community well-being. As Uganda continues to grow and develop, the role of LST in fostering sustainable local development becomes increasingly important.
In Uganda, contributions made to the National Social Security Fund (NSSF) by both employees and employers are considered deductible expenses for the purpose of calculating taxable income. This means that the amounts contributed to the NSSF can be deducted from the gross income of both individuals and companies before arriving at the taxable income. This provision encourages participation in the NSSF by reducing the tax burden on contributors, ultimately promoting savings and financial security for employees in their retirement.
Uganda Social Security and Payroll Deduction Rates in 2020
In Uganda, both employees and employers are subject to various social security and payroll deductions. These deductions are crucial for ensuring that workers are supported during times of need such as retirement, health challenges, and occupational hazards. The Uganda National Social Security Fund (NSSF) is the principal entity managing social security contributions in the country. This guide provides an overview of the types of social security and payroll deductions in Uganda and what each element funds.
Uganda Social Security in 2020: Rates for Employers and EmployeesCategory | Employee | Employer | Total |
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Social Security Deductions | 5% | 10% | 15% |
Uganda Social Security and Payroll Deduction in 2020: Earnings Thresholds for Employers and EmployeesCategory | Employee | Employer |
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Min. | Max. | Min. | Max. |
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Social Security Deductions | n/a | n/a | n/a | n/a |
Uganda VAT Rates in 2020
VAT rates for Uganda are reviewed annually, you can use the VAT Calculator to calculate VAT due in Uganda or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Uganda VAT RatesVAT Rate | VAT Description |
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18% | Standard Rate |
Historic Tax Tables supported for Uganda
The following tax tables are supported by iCalculator™ UG as part of the suite of free tax tools we provide for Uganda.