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2.1ÌýÌýÌýÌý Withholding of income tax

Employment relationship

In Uganda, an employer is identified as a person (individual or corporate) who employs or remunerates an employee. Employment is regarded to exist where there is a contractual relationship between master and a servant, for pay. Therefore, an employee is an individual engaged in employment, and employment refers to:

1. Ìý

   •ÌýÌýÌýÌý position of an individual in the employment of another person

2. Ìý

   •ÌýÌýÌýÌý directorship of a company

3. Ìý

   •ÌýÌýÌýÌý a position entitling the holder to a fixed or ascertainable remuneration

4. Ìý

   •ÌýÌýÌýÌý holding or acting in a public office

(URA: taxes on employment income)

As a general rule, an individual who does not satisfy the definition of employment outlined above, automatically becomes an independent contractor.

Factors which may be used to ascertain the nature of the relationship, and therefore whether the worker is an employee or a contractor, may include (but not be limited to):

1. Ìý

   •ÌýÌýÌýÌý who has control over the hours worked