Uganda’s Income Tax (Amendment) Act, 2026 and Excise Duty (Amendment) Act, 2026 have received presidential assent and are now law in force.
This commentary re-examines our legislative discussion and analysis of these two components of the FY2026/27 tax package as proposals and Parliamentary Bills.
The commentary accordingly guides on which measures survived, which changed, and which did not enter the enacted regime, what taxpayers must implement and practical compliance recommendations.
Key Commentary Takeaways
PAYE relief moves to payroll implementation. The restructured resident-individual bands analysed in our earlier PAYE commentary are now contained in Schedule 4 of the Income Tax Act. For employers applying the ordinary resident-individual rates through payroll, the change is an immediate and urgent compliance obligation.
Income-tax collection closer to the point of payment. The amended Act deploys specific withholding regimes for qualifying debenture interest, betting and gaming winnings, telecommunications commissions and payments to public entertainers. These provisions increase the importance of identifying the nature of a payment before it is made rather than dealing with the tax consequence only at year end.
Individual rental income taxpayers may elect to comply monthly. Several prominent Income Tax proposals provisions changed materially. The final rental-income provision, for example, permits rather than compels monthly provisional returns by individuals.