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Depreciation Rates As at 26th June 2021 - Income Tax Act

This document summarizes tax regulations in Uganda, including: 1) Declining balance depreciation rates for assets ranging from 40% for computers to 20% for specialized equipment. 2) A vehicle depreciation ceiling of 60 million Ugandan shillings. 3) A straight-line depreciation rate of 5% for industrial buildings. 4) Prescribed areas for tax purposes including Kampala, Entebbe, Namanve, Jinja and Njeru. 5) Currency point defined as equivalent to 20,000 Ugandan shillings. 6) Regulations on withholding tax amounts for employees, calculating monthly amounts based on annual income.

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Kisembo Rwangakuramya
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1K views3 pages

Depreciation Rates As at 26th June 2021 - Income Tax Act

This document summarizes tax regulations in Uganda, including: 1) Declining balance depreciation rates for assets ranging from 40% for computers to 20% for specialized equipment. 2) A vehicle depreciation ceiling of 60 million Ugandan shillings. 3) A straight-line depreciation rate of 5% for industrial buildings. 4) Prescribed areas for tax purposes including Kampala, Entebbe, Namanve, Jinja and Njeru. 5) Currency point defined as equivalent to 20,000 Ugandan shillings. 6) Regulations on withholding tax amounts for employees, calculating monthly amounts based on annual income.

Uploaded by

Kisembo Rwangakuramya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SIXTH SCHEDULE

Ss.27, 28, 29

Depreciation Rates and Vehicle Depreciation Ceiling


Part I
Declining Balance Depreciation Rates for Depreciable Assets

CLASS ASSETS INCLUDED RATE

1 Computers and data handling equipment 40%

Automobiles; buses and mini-buses with a seating capacity of


less than 30 passengers; goods vehicles with a load capacity
2 35%
of less than 7 tonnes; construction and earth moving
equipment.

Buses with a seating capacity of 30 or more passengers; goods


vehicles designed to carry or pull loads of 7 tonnes or more;
3 specialised trucks; tractors; trailers and trailer-mounted
30%
containers; plant and machinery used in farming,
manufacturing or mining operations.

Rail cars, locomotives and equipment; vessels, barges, tugs


and similar water transportation equipment; aircraft; specialised
4 public utility plant, equipment and machinery; office furniture, 20%
fixtures and equipment; any depreciable asset not included in
another class.

Part II

Vehicle Depreciation Ceiling

The amount for the purposes of Section 27(11) is shs. 60,000,000 [30,000,000]

Part III

Straight-line Depreciation Rate for Industrial Buildings

The depreciation rate for the purposes of Section 29 is 5%.

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Part IV

Prescribed Areas

The following areas are prescribed for the purposes of Section 28: - Kampala, Entebbe,
Namanve, Jinja and Njeru.

SEVENTH SCHEDULE
S. 2
Currency Point

One currency point is equivalent to twenty thousand (20,000) Uganda shillings.


__________________

EIGHTH SCHEDULE
S.89Q
Classification, Definition and Allocation of Costs and Expenditures

Cross References

Building Societies Act, Cap. 108


Constitution, 1995
Diplomatic Privileges Act, Cap. 201
Income Tax Decree, Decree 1/1974
Investment Code, Statute 1/1991
Local Governments Act, Cap. 243
Magistrates Courts Act, Cap.16
Mining Act, Cap. 148
Petroleum (Exploration & Production) Act, Cap.150
Petroleum (Exploration, Development & Production) Act, 2013
Petroleum (Refining, Conversion, Transmission & Midstream) Act, 2013
Uganda Revenue Authority Act, Cap. 196

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THE INCOME TAX (WITHHOLDING TAX) REGULATIONS 2000
(Under Section 116(1) and 164 of the Income Tax Act, 1997 Cap.340)

In exercise of the powers conferred upon the Minister by Section 164 of the Income tax Act
1997, these Regulations are made this 1st day of June 2000.

1. Short Title and Commencement

These Regulations may be cited as the Income Tax (Withholding Tax) Regulations, 2000,
and shall be deemed to have come into force on the 1st day of July 2000.

2. Interpretation

(1) In these Regulations, “Act” means the Income Tax Act, 1997.

(2) Terms and expressions used in these Regulations have, unless the contrary intention
appears, the same meaning as they have in the Act.

3. Amount of Tax to be Withheld

(1) Every employer obliged under Section 116 of the Act to withhold tax from a payment
of employment income to an employee shall withhold tax in accordance with this
regulation.

(2) Subject to sub-regulation (10), where employment income is paid monthly by an


employer to an employee and the employee has furnished the employer with an
employee declaration, the amount of tax to be withheld from the payment for a month
(referred to as the “current month”) is calculated according to the following formula –

(A – B)/C

Where –

A is the amount of tax payable calculated –

(a) in the case of an employee who is a resident individual, in accordance


with paragraph 1 of Part I of the Third Schedule to the Act on the
annualised employment income of the employee calculated in
accordance with sub-regulation (3); and

(b) in the case of an employee who is a non-resident person, in accordance


with paragraph 2 of Part I of the Third schedule to the Act on the

- 147 -

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