Can I Claim Salaries, PAYE and NSSF as a Business Expense in Uganda?
Yes. Salaries and the employer's 10% NSSF contribution are deductible. PAYE and the employee's 5% are deducted from pay and passed to URA and NSSF.
Finn does your books in Uganda
AccountsOS keeps the books for Uganda businesses, tracks tax deadlines and handles expenses, in plain English. Ask Finn about yours, no signup needed.
What Uganda Revenue Authority (URA) says
Employment costs incurred in the business are allowable. The employer withholds PAYE and pays it with the return by the 15th of the following month, and pays NSSF at 15% (10% employer, 5% employee) by the 15th. Every employer must register with NSSF, whatever the number of employees. Keep each employee's TIN or NIN and NSSF number on file, because the returns ask for them.
When you can claim
- Gross salaries and wages
- The employer's 10% NSSF contribution
- Staff training for the business
- Overtime and allowances paid under the employment contract
- Medical cover the company provides for staff, as your payroll adviser advises
- Casual labour paid through the payroll
- Bonuses paid under the employment contract
- Pay for staff on leave under the employment contract
When you cannot claim
- PAYE or NSSF that was deducted but not paid over, which stays a liability
- Personal expenses of the owner paid as salary without a contract
- Salaries of staff working for another company
- NSSF penalties for late payment
Good to know
Pro tip: Pay PAYE and NSSF on time: late PAYE filing costs at least UGX 200,000 a month. Send Finn the payroll summary each month. It books salaries, PAYE and NSSF and puts the 15th on your calendar for both.
Important: From 1 July 2026 the resident PAYE bands changed (nil up to UGX 335,000 a month). Check payroll uses them. Employers who filed July or August 2026 at the old rates amend those returns.
Related expenses
Stop guessing what you can claim in Uganda
AccountsOS automatically categorises expenses with Uganda Revenue Authority (URA)-aware rules and tells you exactly what is claimable.
Try Free