Government of the republic of Uganda has officially written to FUFA informing them about their intention to subject footballers to income tax and contribution to the National Social Security Fund (NSSF).
While meeting captains and representatives of clubs playing in the Uganda Premier League and the FUFA Big League on Saturday morning, FUFA President Moses Magogo revealed that they have received an official letter from both NSSF and URA on the aforementioned matter.
“The government has officially written to us regarding NSSF and taxation (Pay As You Earn) for the players. It’s a new thing and definitely tough considering the status of our leagues but we must embrace it and see how both the clubs and players will be able to fulfill it.
“Football is a business and must be subjected to taxation. As we seek to go professional, these are realities that we must face.”
Income tax is charged on every person who has chargeable income administered under the Income Tax Act (1997)
The Income Tax law defines Employment Income as earnings that accrue to individuals owing to employment – past, present or in future, including the value of any benefit, advantage or facility granted to an employee.
In Uganda, taxation on salaries (PAYE) starts at Ush 235,000. Therefore for a player that gets the said amount but not beyond Ush 335,000, the rate applied is 10%.
Income tax rates
223,000 – 335,000 = 10%
335,000 – 410,000 = 20%
410,000 – 10M. = 30%
On the other hand, a player will be subjected to contribute 5% to NSSF with the club contributing 10%.
NSSF is a fully funded contributory scheme financed entirely by employees who pay %5 of their total monthly wages and their respective employers who top it up with 10% of employees’ total cash remuneration. Every member therefore saves %15 of their total monthly remuneration with NSSF.