Pay As You Earn

by Atango c.s
(Soroti)

Question:
How do i calculate PAYE using the current threshold?


Answer:
Below is the Uganda Pay as You Earn Tax structure applicable for the financial year 2012-2013.

Income tax band UgShs per month (‘000)
0 – 235
Taxable amount
Nil
Rate of tax
0%
Amount of tax payable
Nil


Income tax band UgShs per month (‘000)
235– 335
Taxable amount
100,000
Rate of tax
10%
Amount of tax payable
10,000


Income tax band UgShs per month (‘000)
335– 410
Taxable amount
75,000
Rate of tax
20%
Amount of tax payable
15,000

Income tax band UgShs per month (‘000)
410 – 20,000
Taxable amount
19,590,000
Rate of tax
30%
Amount of tax payable
5,877,000

Income tax band UgShs per month (‘000)
10,000– 20,000
Taxable amoun
10,000,000t
Rate of tax
10%
Amount of tax payable
1,000,000

Total tax payable on a monthly salary of Shs 20m is 6,902,000


Chargeable Income Per Month
Not exceeding Ushs 235,000
Rate of Tax
Nil


Chargeable Income Per Month
Exceeding Ushs. 235,000 but not exceeding Ushs. 335,0000
Rate of Tax
10% of the amount by which chargeable income exceeds Ushs. 235,000


Chargeable Income Per Month
Exceeding Ushs. 335,000 but not exceeding shs. 410,000
Rate of Tax
Ushs. 10,000 plus 20% of the amount by which chargeable income exceeds Ushs. 335,000


Chargeable Income Per Month
Exceeding Ushs. 410,000
Rate of Tax
(a) Shs 25,000 plus 30% of the amount by which chargeable income exceeds Shs. 410,000; and
(b) where the chargeable income of an individual exceeds
Shs.10,000,000 an additional 10% charged on the amount by which chargeable income exceeds Ushs 10,000,000