Uganda is an African country with a large population of over 40 million. It borders countries such as South Sudan, the Democratic Republic of the Congo, Kenya, and more. From the large...
Read MoreUganda is an African country with a large population of over 40 million. It borders countries such as South Sudan, the Democratic Republic of the Congo, Kenya, and more. From the large city of Kampala to the forests that house endangered mountain gorillas, Uganda is a diverse country with plenty of opportunities.
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Uganda is an African country with a large population of over 40 million. It borders countries such as South Sudan, the Democratic Republic of the Congo, Kenya, and more. From the large city of Kampala to the forests that house endangered mountain gorillas, Uganda is a diverse country with plenty of opportunities.
If you’re looking to expand to Uganda, one of the first things you need to consider is how to set up your Uganda payroll. You’ll need to establish this infrastructure before hiring employees or working in the country. An alternative, however, is to work with a global PEO. Choosing Uganda payroll outsourcing, such as with Globalization Partners, will ensure that you get to work fast without worrying about compliance.
It’s important to follow the right tax regulations when you’re establishing payroll. Uganda uses a Pay As You Earn (PAYE) system, which requires employers to deduct certain taxes straight from an employee’s paycheck. The progressive tax rate ranges from 0-40%, depending on how much an employee earns.
Uganda also has a National Social Security Fund (NSSF) that amounts to 15% of an employee’s monthly salary. However, employees and employers split this amount at 5% and 10%, respectively. Both resident and non-resident corporations must pay a standard 30% income tax, also known as corporate tax.
When you’re expanding to the country, you’ll also get to choose from four different Uganda payroll options:
Before you can set up your Uganda payroll, you need to meet certain regulations. The biggest is that you must have a registered entity in the country to start working. This Uganda subsidiary will help you begin work, but it will also delay your plans for operating. Instead of you waiting weeks or months to register your entity, Globalization Partners will help you start working fast through Uganda payroll outsourcing. We’ll handle your payroll and help you start working in as little as a day.
Entitlement and termination terms are an important part of any employment relationship. You should outline this information in an employment contract before deciding on a Uganda payroll option so that you can stay compliant. If you choose to terminate an employee, you must give them written notice depending on how long they have worked for your company.
Globalization Partners is here for all your global expansion needs in Uganda and beyond. Contact us today to learn more about Uganda payroll outsourcing.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
