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Uganda: Country Updates VAT Return Templates

On 4th of October, Uganda Revenue Authority, also called the URA, launched templates for VAT and Pay As You Earn (PAYE) schemes.

The only change in the VAT return template is a validation control added for VAT deferred on imported goods. According to the URA, this means that the new VAT returns will only permit VAT, supported by fiscal reports at EFRIS and submitted to the Automated System for Customs Data (ASYCUDA).

With the updated templates, a slight confusion was brought about by the monthly Pay As You Earn form. In the template, for employees with fixed-rate contracts and secondary employment, the tax rate for computation was increased from 30% to 40%. The change is applicable to persons with secondary employment and includes both residents and non-residents of Uganda.

However, the URA clarifies that the updated percentage has been in place since 2012, and the employees with secondary jobs were mistakenly paying 30% instead of the required 40%. The claim has since sparked discussions in Trade Committee within the Ugandan Parliament.

The tax authority later explained that with the updated rate, a person with the same income from either one employer or two employers will now pay the same PAYE. 

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