Stamp Duty is paid by the person drawing, making or executing the instrument. Here the term “executing” means “signing.” The following instruments are some of those which pay stamp duty

Where executed instruments are to be registered or acted upon by a public office or officer like the registrar of titles in the Ministry of Lands and Urban Development and Uganda Registration Services Bureau, these entities require payment of stamp duty before acting on the instruments. However, where instruments are executed between individuals or non-individuals and are for in house use, collection of stamp duty is not easy in this scenario.

Section 3 of the Stamps Duty Act levies stamp duty on the instruments in the schedule 2 of Stamp Duty Act Cap. 2014 that is executed or received in Uganda. The person drawing or making the instruments is required to pay Stamp duty.

For one to pay stamp duty, they do not need to be register for it.
Every person who has executed or received any instrument in Schedule 2 of the Stamp Duty Act 2014 as amended is required to declare and pay stamp duty.

Stamp duty is payable on all the instruments executed or received in Uganda within 45 and 30 days respectively as provided for under sections 13 and 14.

Agreements executed by Government and Public International institutions under the second schedule of the VAT Act and Income Tax Act plus instruments where exemptions are obtained from the Minister of
Finance

Non-payment of stamp does not make an instrument null and void; however, it renders the instrument inadmissible as evidence in commercial courts of law.

There is no threshold for stamp duty since it is charged on every instrument that is executed or received in Uganda.

There is a penalty of UGX.2 million or 6 months’ imprisonment on conviction or both for executing an instrument without payment of proper duty.