Some companies will be allowed to delay payment of taxes like Pay as You Earn and corporation taxes to remain in operation.
Medical items required in the fight against the virus, including masks, protective goggles, body bags, and sanitizers, infra-red thermometers and motorized fumigation pumps among others are now exempted from any tax.
This information is contained in a letter government sent to the International Monetary Fund asking for emergence funds.
Uganda has been given Shillings 1.9trillion by the IMF this month.
Pay as You Earn is charged on every employee income per month while corporation tax is charged on companies’ income.
Companies whose income is less than Shs. 500m a year will be allowed to delay payment of corporation taxes by six months. The country will waive interest on tax arrears to lessen businesses’ tax liability obligations to the government.
According to an April 2020 letter signed by the minister of Finance Matia Kasaija and Bank of Uganda acting deputy governor Dr Adam Mugume, the government will defer PAYE tax payments by the most affected sectors, like manufacturing and tourism.
This is part of the government’s plan to help businesses get back to their footing.
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