Following the enactment of the Income Tax (Amendment) Act, 2026, the Uganda Revenue Authority has revised the PAYE return form to reflect new income tax rates for resident individuals effective 1 July 2026. The amendment adjusts the tax bands and introduces a revised top marginal rate, impacting monthly payroll deductions. Employers must update their payroll systems and submit revised PAYE returns using the new form for periods from July 2026 onward.
Key Takeaways
- Revised Tax Bands: The amendment modifies the chargeable income thresholds and applicable rates, increasing the tax-free threshold and adjusting the top rate to 40% for income exceeding UGX 50 million per annum.
- Form Updates: The new PAYE return form (Version 2.0) includes additional fields for the revised bands, reliefs, and a declaration of compliance with the amended Act.
- Employer Obligations: Employers must remit PAYE based on the new rates by the 15th of the following month and file returns via the URA web portal; penalties apply for late or incorrect submissions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement