Uganda Premier League players (UPL) will have to pay National Social Security Fund (NSSF) and Pay As You Earn (PAYE) tax, FUFA has confirmed after receiving an official letter from the government about the issue.
The development was confirmed by FUFA president Moses Magogo on Saturday while meeting captains and club representatives from all the Uganda Premier League and Big League clubs at the FUFA house in Mengo.
“The government has officially written to us regarding NSSF and taxation (PAYE) for the players,” Magogo told the players in the meeting.
“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 fulfil it,” he added.
The FUFA president was quick to encourage players on the development insisting it’s the way to go and everyone should embrace it.
“Football is a business and must be subjected to taxation. As we seek to go professional, these are realities that we must face,” he stressed.
Monthly contribution to NSSF is 15% which is divided into two parts with an employee contributing 5% of their monthly remuneration while the employers (clubs) top-up 10% to the security fund.
The income tax rates vary depending on how much the employee earns with the highest percentage standing at 30%.
The minimum taxable amount for PAYE is 223,000. Employees who earn below 335,000 are subject to a rate of 10%, those who earn between 335,000 but less than 410,000 are subject to a 20% rate.
While employees who earn between 410,000 and 10M are subject to a 30% PAYE rate an additional 10% charge is levied on income exceeding 10M.
Football256 reliably understands only KCCA FC payout NSSF for their players and staff but our efforts to ascertain other clubs’ stand on the matter proved futile as most requested for time to interpret the communique.