ACTS

SUPPLEMENT No. 2 12th October, 2012.

ACTS SUPPLEMENT

to The Uganda Gazette No. 56 Volume CV dated 12th October, 2012.

Printed by UPPC, Entebbe, by Order of the Government.

Act 4

Income Tax (Amendment) Act 2012

THE INCOME TAX (AMENDMENT) ACT, 2012.

ARRANGEMENT OF SECTIONS.

Sections

1. Commencement.

2. Amendment of First Schedule to Income Tax Act Cap. 340.

3. Amendment of Third Schedule to principal Act.

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THE INCOME TAX (AMENDMENT) ACT, 2012

An Act to amend the Income Tax Act Cap. 340 to provide new

income tax rate; to provide a withholding tax rates for interest for

income derived from government securities and for related

purposes.

D

ATE OF ASSENT: 26th September, 2012.

Date of Commencement:

See section 1.

B

E IT ENACTED by Parliament as follows:

1. Commencement.

This Act shall be deemed to have come into force on 1st July, 2012.

2. Amendment of First Schedule to Income Tax Act Cap. 340.

The First Schedule to the Income Tax Act in this Act referred to as

the principal Act is amended by inserting the following items in

their alphabetical order—

“Austrian Development Agency (ADA)

Belgian Technical Cooperation (BTC)

Danish International Development Agency (DANIDA)

Department for International Development (DFID)

Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ)

French Development Agency (AFD)

Icelandic International Development Agency (ICEADA)

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Act 4

Income Tax (Amendment) Act 2012

Japan International Cooperation Agency (JICA)

Korea International Cooperation Agency (KOICA)

Kreditanstalt fur Wiederaufbau (KFW)

Norwegian Agency for Development Cooperation (NORAD)

Swedish International Development Agency (SIDA)”

3. Amendment of Third Schedule to principal Act.

The Third Schedule to the principal Act is amended—

(a) by substituting for Part I the following—

“s. 6(1).

Part I.

Income tax rates for individuals.

1. The income tax rates applicable to resident individuals are—

Chargeable income Rate of tax

Not exceeding Ushs 2,820,000 Nil

Exceeding Ushs. 2,820,000 but not

exceeding Ushs. 4,020,000

10% of the amount by which

chargeable income exceeds Ushs.

2,820,000.

Exceeding Ushs. 4,020,000 but not

exceeding shs. 4,920,000

Ushs. 120,000 plus 20% of the amount

by which chargeable income exceeds

Ushs. 4,020,000.

Exceeding Ushs. 4,920,000 (a) Ushs 300,000 plus 30% of the

amount by which chargeable

income exceeds Ushs. 4,920,000;

and

(b) where the chargeable income of

an individual exceeds

Ushs.120,000,000 an additional

10% charged on the amount by

which chargeable income

exceeds Ushs. 120,000,000.

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Act 4

Income Tax (Amendment) Act 2012

Act 4

Income Tax (Amendment) Act 2012

2. The income tax rates applicable to nonresident individuals are—

(b) in Part V—

(i) paragraph (1) by inserting immediately after “118” the

following—

“excluding interest on government securities”

(ii) by inserting after paragraph (2) the following—

“(3) The withholding tax rate applicable for interest

payments on government securities to a resident

person under section 117 is 20%”

(c) in Part VI by substituting for “1,560,000” the following—

“2,820,000”

Chargeable income Rate of tax

Not exceeding Ushs. 4,020,000 10%

Exceeding Ushs. 4,020,000 but not

exceeding Ushs. 4,920,000

Ushs. 402,000 plus 20% of the

amount by which chargeable income

exceeds Ushs. 4,020,000.

Exceeding Ushs.4,920,000 (a) Ushs. 582,000 plus 30% of the

amount by which chargeable

income exceeds Ushs.

4,920,000; and

(b) where the chargeable income of

an individual exceeds

Ushs.120,000,000 an additional

10% charged on the amount by

which chargeable income

exceeds Ushs. 120,000,000.

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