Buy-Import-Export Premium Grade UGANDA VANILLA BEANS                           Buy-Import-Export Un-Refined Raw SHEA BUTTER 

PAYE penalties in Uganda

What are the penalties regarding non compliance to withholding Pay As You Earn (PAYE)?

A withholding agent who fails to withhold tax in accordance with the Income Tax Act Cap 340 is personally liable to pay to the Commissioner the amount of tax which has not been
withheld, but the withholding agent is entitled to recover this amount from the payee.

Any person who fails to comply with withholding PAYE is liable for interest at a rate equal to 2 percent per month on the amount unpaid calculated from the date on which the payment was due until the date on which payment is made.
i.e. 2% x (tax) x no. of months

For example if PAYE charged on gross income is Ug shs 100,000 and the withholding agent fails to comply for 5 months, the penalty charge is:

2/100 x 100,000 x 5 = 10,000

Click here to post comments

Return to Frequently Asked Questions about Uganda Taxes & News.

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.