Taxable vs Non-Taxable Benefits Uganda 2026
| Benefit | Taxable? | Notes |
|---|---|---|
| Housing allowance in cash | Yes — fully taxable | Added to salary before PAYE |
| Employer-provided accommodation | Yes | Taxed at deemed market value |
| Transport allowance in cash | Yes — fully taxable | Added to salary before PAYE |
| Company vehicle personal use | Yes | Taxed at prescribed benefit rate |
| Company vehicle work use only | No | Must be exclusively for work |
| Meals provided at workplace | No — exempt | Must be equal for all staff |
| Medical insurance premiums | Yes — taxable | Group policies still taxable |
| School fees for staff children | Yes — fully taxable | Common NGO and corporate benefit |
| Staff training fees | No — exempt | Must be work-related training |
| End-of-year bonus | Yes — fully taxable | Taxed in the month received |
The Most Commonly Missed — Housing Allowance
A manager on UGX 3,000,000 basic salary with a UGX 1,000,000 housing allowance must have PAYE calculated on UGX 4,000,000 — not UGX 3,000,000. Getting this wrong means PAYE is understated every month and accumulates into a significant URA liability over time.
💬 Not sure which employee benefits are taxable in Uganda?
Basket Advisory conducts payroll health checks identifying untaxed benefits and compliance gaps. Want to know more? Talk to our consultant.
📧 solutions@basketadvisory.com
Talk to a Consultant →