In Uganda, an Employer is a person (individual or corporate) who employs or remunerates an employee. And an Employee is an individual engaged in employment.
The made through employment income comprise of the following amounts according to the law: -
- Amount of private/personal expenditure discharged or reimbursed by the employer.
- The value of any benefits in kind provided by/on behalf of the employer.
- Any amount in compensation of termination of employment or contract.
- Insurance premiums paid by a tax-exempt employer for life insurance of an employee and/or his dependents.
- Payments in respect of change of employment/contract terms or payment for agreement to any restrictive conditions of employment.
- Wages, salary, leave pay, payment in lieu of leave, overtime pay, fees, commission, gratuity, bonus, allowance (entertainment, duty, utility, welfare, housing, medical, any other) paid in cash.
- Discounts in shares allotted to an employee and profit/gain on disposal of such shares.
This module will cover all the employee gains that are not included in chargeable income
A benefit in kind is any facilitation directly/indirectly given by an employer to an employee in relation to past, present or future employment (not necessarily contractual). In brief these are taxable non-cash benefits.
The module covers all the benefits an employee gets from his employer and URA’s valuation of these benefits according to subsection (3) of section 20 of the Act.
Other Topics covered include
- Income tax rates for individuals
- resident individuals
- to non-resident individuals
- Treatment of part time allowances
- Employee’s rights
- Employer’s obligation