Some categories of people are not taxed

SIR — Reference is made to Edith kunihira’s letter in the New Vision of march 1 entitled “Tax the expatriates”.

There are various provisions in the law governing the taxation of such persons.

The following categories of people have their income exempt from taxation: lIncome of any organisation or person entitled to privileges under the Diplomatic privileges act;

The official employment income derived by a person in the public service of the government of a foreign country provided this person is either a non-resident or is a resident solely for the reason of performing such service and this person’s income is subject to tax in that country and is payable from the public funds of that country.

Any allowance payable outside Uganda to a person working in a Ugandan foreign mission

Employment income derived by an individual to the extent provided for in an agreement between the government of Uganda and a foreign government or a listed institution for the provision of technical assistance to Uganda if the individual is a non-resident or a resident solely for the purpose of performing duties under the agreement and the minister has concurred in writing with the tax provisions in the agreement.

Foreign source income derived by a resident individual other than a citizen of Uganda present in Uganda for a period or periods not exceeding two years lWith the exception of the above, all income derived by expatriates is subject to tax under the different provisions of the law.

Jane Muhawe
Spokesperson
Uganda Revenue Authority