The Federation of Uganda Football Association received a letter from the government of Uganda with an intent to start taxing the players playing in Uganda Premier League. In addition, the letter stresses that players will be subjected to income tax, PAYE, and NSSF.
These directives however have come in a way of growing the sport and the economy of Uganda. Government of the Republic of Uganda officially FUFA informed FUFA about this class contribution that will start as the new season commences Times Uganda has learned.
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 as regards the above 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.” Part of the letter reads.
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Below is a break down on how income tax is levied, 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%
In addition, however, a player will be subjected to contribute 5% to NSSF with the club contributing 10%. Something we yet to get a response about the development of various club managements and individual players
