Understanding the New PAYE Tax on Secondary Employment in Uganda

Changes to Uganda’s Pay As You Earn (PAYE) system have introduced a new tax bracket specifically for income derived from secondary employment. Under the revised regulations, all earnings from such secondary sources will be subject to a flat tax rate of 40 percent.

This move by the Uganda Revenue Authority (URA) aims to streamline the taxation of multiple income streams. Previously, the tax treatment could vary depending on the primary employment setup and the nature of the secondary activity.

Professionals who engage in side businesses, consulting, or hold multiple part-time positions may find their net income from these additional roles significantly impacted by this fixed rate. It is advisable for taxpayers to review their overall income structure and consult with tax professionals to fully understand the implications of this adjustment on their financial planning and tax obligations.

Source: https://www.monitor.co.ug/uganda/business/prosper/paye-changes-they-re-not-telling-you-5454666