INTRODUCTION
This information introduces to the reader the various forms of income taxes administered and collected in Uganda. It does not go into details to give the administrative procedures, taxpayer's rights and obligations as well as consequences of non compliance.

ADMINISTRATION OF INCOME TAXES
Income taxes in Uganda are administered and collected by the internal revenue Department of the Uganda Revenue Authority. The department has its head office in Kampala with quite a number of branches, called District offices, all over the country. Each income tax payer is expected to pay his/her income tax dues at the District Revenue office under which the business falls by location. The revenue districts are not necessarily the political districts. it is therefore important to note that the Revenue office nearest to the taxpayer is likely to be the district to which he/she pays income tax.

What is Income Tax?
Income tax is a tax charged on income of any person. The term income is defined to include any gains, profits, interest, dividends and also any non monetary benefit, advantage or facility obtained by a person through gainful means.

Who is a "Person"?
The income Tax Act, 1997 defines a person to include an individual, a partnership, a trust, a company, a retirement fund, a government, a political sub-division of a government and an institution listed in the first schedule of the Act.

Categories of Income Taxes
Income taxes are categorized for administrative purposes according to source and method of collection:

(a) Individual Income Tax
This tax is charged on income earned by an individual e.g a sole trader. The term is more applied to individuals in self employed business. However, individual income tax is not limited to business income alone. it includes all income earned by an individual from all sources except that income which is assessable separately e.g. rental income.

(b) Corporate Income Tax (Corporation Tax)
This tax is charged on income earned by a person like a company, a trust, etc. other than an individual. Like in the case of individual income tax, corporate income comprises income from various sources of the tax payer. Corporate income is taxed at a corporation rate of tax.

(c) Rental Income Tax
Under the income Tax Act, 1997 rental income earned by a corporate landlord i.e a person other than an individual is part of corporate income and is taxed under corporate income tax laws.

Rental income earned by an individual landlord is segregated (separated) from income earned from other sources by the same individual and taxed separately under the Rental tax rate structure.

(d) Pay As You Earn (P.A.Y.E) Tax
This is a form of individual tax charged on employment income. This tax is deducted by employers from employment emolument before effecting the last payment for the period(Normally a month) to an employee, remitting the total tax deducted to Uganda Revenue Authority and accounting to the employee that the tax has actually been paid over to government.

(e) Withholding Tax
Like P.A.Y.E tax, this is another form of source tax. Withholding tax is a tax deducted at source by a person (Withholding agent) on the basis of the gross value of another person to whom the tax is applicable. Withholding tax is in fact income tax paid in advance or as a final tax depending on the circumstance.

(f) Income Tax for Small Business Taxpayers
According to the Income Tax Act, 1997 a small business tax payer is defined to be a person (individual or corporate) whose total annual sales turnover is less than Uganda Shillings Fifty Million(U.Shs. 50 Million)

The income Tax payable by such a person is estimated and varies according to the segment of the gross turnover in which his/her sales fall for any given year.

However, this definition excludes persons (taxpayers) engaged in the following lines of business: Medical/dental practices, Architect, Engineering, Audit/Accountancy,  Legal Practice,  Other professional service; Public entertainment service e.g Theater, Public utility service e.g sanitation, and Construction service.

INCOME TAX STRUCTURE

Individual Income Tax Rates Structure

B.

C. Pay As You Earn (PAYE):

D

E.

F. Tax for Small Business Tax payers

G. Withholding Tax:-