Manufacturing of Tangible products
Tangible goods can be defined as any item that they can usually, or to some degree, be visible or seen, touched, weighed, measured smelled, or tasted,
The scope of manufactured tangible products in Uganda plastics, steel products, appliances, stationery, cosmetics and beauty products, cleaning products, jewelry products etc
Tangible goods can be defined as any item that they can usually, or to some degree, be visible or seen, touched, weighed, measured smelled, or tasted,
The scope of manufactured tangible products in Uganda plastics, steel products, appliances, stationery, cosmetics and beauty products, cleaning products, jewelry products etc
The scope of manufactured tangible products in Uganda plastics, steel products, appliances, stationery, cosmetics and beauty products, cleaning products, jewelry products etc
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A manufacturing business is required to be registered with;
- Uganda Registration Services Bureau (URSB) for Company registration
- Uganda Revenue Authority (URA) for taxes
- Local council authority e.g. KCCA, municipal council, for a trading license
Please note:
Upon registration, the business may be required to comply with the requirements of statutory bodies like;
- Uganda National Bureau of Standards (UNBS)
- Ministry of trade, industry and cooperatives
For individual
- National ID or any other two identifications (Passport, Employees ID or Voter’s card, Driver’s Licence, work permit, Village ID, current bank statements, VISA)
- Certificate of registration (in case of a business)
For non-individual
- Company Form 20
- Certificate of incorporation
Click here for details on requirements for registration
You’re required to visit the URA portal on ura.go.ug
- Click here to register as an individual
- Click here to register as a non-individual
As a taxpayer you are entitled to your rights. Equally there are obligations you must fulfill.
- Click here for your rights as a taxpayer
- Click here for your obligations as a taxpayer.
The taxes applicable to agro processing industry include the following;
Small Business/ Presumptive tax
This is a tax charged on businesses whose annual sales exceed UGX 10, 000,000 but below UGX 150,000,000.
Corporation tax
It’s a tax imposed on non-individual players in the sector at a standard rate of 30%.
Value Added Tax (VAT)
VAT is a consumption tax charged at a rate of 18% on all supplies made by taxable persons i.e. persons registered or required to register for VAT purposes. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.
Click here to register for VAT
Please note:
All VAT registered taxpayers are obliged to register for EFRIS and issue e-invoices
Click here for information on how to register for EFRIS
LOCAL EXCISE DUTY
This is a tax that is imposed on specified imported or locally produced goods, and services such as beer, non-alcoholic beverages, cooking oil, etc.
Please Note
Some companies which manufacturer tangible products may be are required to have digital tax stamps.
A digital tax stamp is a marking that applied to goods or their packaging and contains; security features and codes to prevent counterfeiting of goods and enable track and stress capabilities. Goods that should have digital tax stamps include; all excisable goods like wines, spirits, water, cigarettes, beers, soda, sugar, cooking oil, fruits and vegetable juices, any other alcoholic, non-alcoholic and fermented beverages. These goods are not allowed on the market without tax stamps.
Click here for more information on Digital Tracking Solution (DTS)
Withholding tax
Withholding tax (WHT) is an income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). If an agro processor supplies goods above 1 million, the person to whom those goods are supplied charges withholding tax at a rate of 6%. The plant receives a Tax Credit Certificate that helps in offsetting tax liability in the final income tax return.
Please note
The tax withheld is credited/ reduced on the tax payable in the final income tax return.
Click here for information on Withholding tax.
Pay As You Earn (PAYE)
This tax applies to a sector player who has employees (administrative or causal laborers) that earn an aggregate in excess of Ugx. 235,000 per month. This form of tax is withheld every month.
Click here for the PAYE rates
These returns are filed like any other Income tax returns
Click here for information on how to file your returns.
Iyonge yin idwok ripot me cato wil-li dwe idwe bot URA, myero dong icul ocolo ame ayaa iye kun itio kede yore apapat me culu ocolo ame ikin gi tye iye Bank, Mobile Money, VISA, Master Card, EFT, RTGS, USSD Code (*285#) ikin en okene.
Ngec apire tek; Nino me agiki me dwoko ripot me cato wil-li we I dwe bot URA en aye dang obedo nino me agiki me culu ocolo mere.
Tax incentives under Domestic Taxes
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Excise Duty |
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Type of Incentive |
Conditions for granting exemption |
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Nil duty on construction materials of a factory or warehouse exclusive of those available on the local market, locally produced raw materials and inputs. Operator within the industrial park, free zone or other business outside the industrial park or free zone who invests in processing agricultural goods; manufactures or assembles medical appliances, medical sundries or pharmaceuticals, building materials, automobiles, household appliances or manufactures furniture, pulp, paper, printing and publishing of instructional materials. |
Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives apply to an existing operator in an Industrial Park or Free Zone. The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
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STAMP DUTY |
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Type of incentive |
Conditions for granting exemption |
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No stamp duty on execution of the following documents; i) debenture; whether a mortgage debenture or not, being of a marketable security – of total value; ii) further charge; any instrument imposing a further charge on a mortgaged property –of total value; |
a) In case of a new manufacturer, who is subject to availability, has capacity to use at least 70% of the locally produced raw materials, and employs at least 70% citizens with an aggregate wage bill of the new manufacturer and whose investment capital is at least 50 million US Dollars |
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iii) lease of land – of total value; iv) increase of share capital; v) transfer of land; vi) an agreement to provide services on conducting a feasibility study or developing a design for construction.”;
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b) In case of an existing manufacturer who subject to availability has capacity to use at least 70% of the locally produced raw materials, and employs at least 70% citizens with an aggregate wage bill of the existing manufacturer from the date on which the manufacturer makes an additional investment equivalent of 35 million US Dollars |
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VAT |
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Type of incentive |
Conditions for granting exemption |
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Exporters |
Zero rated |
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Nil VAT on the supply of feasibility study and design services and on the supply of locally produced raw materials and inputs. |
Investment in processing agricultural products; manufacturing or assembling medical appliances, medical sundries or pharmaceuticals, building materials, automobiles and house hold appliances; manufacturing furniture, pulp, paper, printing and publishing of instructional materials; establishing or operating vocational or technical institutes; or carrying on |
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business in logistics and warehousing, information technology or commercial farming. Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives applies to an existing operator in an Industrial Park or Free Zone. The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
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For more information, visit the nearest URA office or call the toll-free lines 0800117000/0800217000 or WhatsApp: 077214000
