URA PAYE Automation
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URA PAYE Automation

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Jul 2nd, 2025

URA PAYE Automation

Uganda Revenue Authority (URA) has turned a new leaf in tax administration, embracing technology to streamline how employers calculate, remit, and report Pay As You Earn (PAYE) taxes. What once felt like navigating a maze of manual paperwork is quickly transforming into a smooth digital highway. This shift is more than a trend—it’s a necessity in today’s fast-paced business environment.

The Problem with the Old System

Before automation, filing PAYE returns involved lengthy manual processes. Employers often had to:

  • Download Excel templates

  • Manually input employee details and tax computations

  • Upload the file back to the URA portal

  • Deal with validation errors and late submission penalties

Errors were frequent, compliance was inconsistent, and the time cost was high. It was like fetching water with a leaking bucket—no matter how fast you worked, inefficiencies held you back.

Enter Automation: A New Dawn

URA is automating PAYE processes as part of a wider digital transformation strategy aimed at improving tax compliance and efficiency. Here’s what’s changing:

1. Real-Time Tax Compliance System

Launched under URA’s Domestic Taxes Compliance Improvement Plan 2024/25, the real-time system automatically checks and validates PAYE returns as they are submitted. Think of it as having a tax advisor in your pocket—flagging errors instantly and providing guidance before penalties pile up.

Key benefits include:

  • Immediate detection of incorrect TINs or underreported salaries

  • Automated reminders and alerts

  • Improved transparency in tax deductions

2. Integration with Payroll Software

URA is encouraging businesses to integrate their payroll systems with its digital platform. Approved payroll software can now:

  • Calculate PAYE based on URA’s latest tax brackets

  • Submit monthly returns directly to URA

  • Generate digital receipts and filing confirmations

This reduces human error and ensures accuracy, much like using autopilot on a long journey—it won’t fly the plane for you, but it keeps you on course.

3. Digital Self-Service Platforms

URA’s new chat and call support systems allow employers to:

  • Resolve PAYE-related issues through WhatsApp or live chat

  • Receive instant guidance on submission status

  • Access real-time tax advisory services

This means no more endless queues or waiting on hold. The help you need is just a message away.

4. EFRIS Cross-Checking

Although EFRIS is primarily designed for VAT compliance, it enhances PAYE monitoring by offering URA a complete view of a business’s financial transactions. If your declared payroll doesn’t match your company’s income trends, expect a call—or a Real-Time Tax Advisory.

It’s like trying to hide a campfire in the dark—URA can now see the smoke from miles away.

What It Means for Employers

URA’s PAYE automation isn’t just a policy change—it’s a cultural shift. Employers are now expected to:

  • Adopt digital payroll systems

  • Keep employee data updated (TINs, bank details, NSSF numbers)

  • Submit accurate returns by the 15th of every month

  • Respond promptly to URA's real-time notifications

Failure to comply not only attracts penalties but also affects your reputation with both the URA and your employees.

Looking Ahead

URA’s partnership with technology providers like Tech Mahindra and Mantra Technologies to roll out a full ERP system by 2026 will further automate and connect all revenue systems—PAYE, VAT, customs, and more. This will create a single source of truth for Uganda’s tax ecosystem.

Soon, manual errors will be relics of the past, much like using typewriters in a world of laptops.

Final Thoughts

URA’s PAYE automation is a leap forward, not just for government efficiency but also for private sector professionalism. It simplifies compliance, reduces fraud, and builds trust between employers and employees. Like any new system, it may require some adjustment—but the long-term rewards far outweigh the short-term learning curve.

For businesses that want to thrive in Uganda’s formal economy, adapting to this change isn’t optional. It’s the cost of entry.

FaidiHR is here to help.
We empower businesses to focus on their core operations by automating manual HR and payroll processes—saving time, reducing errors, and ensuring full compliance with evolving tax laws like URA’s PAYE automation.

Call: +254 702 339 699
Email: sales@faidihr.com