Floriculture Farming and Export
Floriculture is the growing and marketing of flowers and foliage plant. It encompasses flower production, processing, marketing, and distribution.
The floriculture products include cut flowers and foliage, potted plants, bedding/garden plants, and propagation materials. The Floriculture sector is one of Uganda’s top ten foreign exchange earners contributing close to $ 30 million in export revenue. Uganda’s flowers are grown almost exclusively for the export market, with 98% of production exported to the Netherlands. Of this, 90% of the flowers are sold through the auctions and 10% are sold through direct sales, mainly to florists. The main types of flowers grown in the country are roses and cuttings.
Exports are goods and services that are produced in one country and sold to buyers in another. Exports are incredibly important to modern economies because they offer people and firms many more markets for their goods.
All farmers in Uganda who earn incomes from their farming ventures are required to be registered with;
- Uganda Registration Services Bureau (URSB) for Company registration or a Certificate of registration if you’re an individual.
- Uganda Revenue Authority (URA) for taxes
Please note:
Upon registration, the farmer is required to comply with the requirements of statutory bodies like
- The Uganda Flowers Exporters Association (UFEA)
- Uganda National Farmers Federation (UNFFE)
- Uganda Hortech Limited (UHL)
- Uganda Flowers Exporters Association (UFEA)
- Uganda Horticultural and Allied Workers’ Union (UHAWU)
For individual
- National ID or any other two of the following valid identification documents; Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card etc.
- Certificate of registration (incase you are in business)
- Statement of particulars and partnership deeds (incase of a partnership)
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 hereto register as an individual
- Click hereto 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.
You need to keep records relating to all transactions in your business. It is important to always have records that are dated so that you can understand which reports relate to what period. These include;
- Income statement records
- Receipt and invoice records
- Payment vouchers
- Import schedules in case you’re an importer
- Contracts executed
- Bank statements
- Appointment letters for your employees and proof of payment of their salaries
- Utility bills
- Stock records
- Debtors and Creditors
- Keep proper records of all business transactions in the English language.
- If you wish to keep records in a different language, apply in writing with clear reasons to the commissioner for permission.
- Where a record is not in English, you will be required to meet the cost of translation into English by a translator approved by the Commissioner.
- Keep records such that it is easy to determine your tax liability;
- Keep records for five years after the end of the tax period to which they relate for future reference.
- You are required to maintain business records for at least five (5) years at any one time
- The records kept should contain sufficient transaction information and should be saved in a format that is capable of being recovered and converted to a standard understandable.
Any person dealing in commercial agriculture business is required to register for income tax. Income tax applies generally to all types of persons who derive income, whether an individual, non-individual or partnership.
Corporation tax
This is tax imposed on all companies in Uganda at a standard rate of 30%. A floriculture farmer must register for this tax.
Income tax
This is a tax imposed on individuals in the sector using the individual rates applicable.
Click here for more information on income tax rates.
Pay As You Earn (PAYE)
This tax is paid by employees in this sector who earn above UGX 235,000 per month. The employer withholds on the employee’s salary and remits it to URA.
Click here for PAYE rates
Withholding tax – will be paid by the floriculture farmer in case of supply of flowers to a designated withholding agent when the invoice value is above UGX 1,000,000
Click here for more information on Withholding tax.
These returns are filed like any other Income tax returns
Click here for information on how to file your returns.
After filing a return, you’re required to pay taxes due using available payment platforms e.g. banks, mobile money, VISA, Mastercard, EFT, RTGS, USSD Code (*285#) etc.
Please note: the due date for payment of tax is the same as that of return filing.
Click here to register a payment
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Description |
Tax incentive |
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Agricultural sprayers |
· VAT Exempted when imported by dealers under the VAT Act. · Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004.
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Agricultural–Chemicals (fungicides and pesticides) |
· VAT Exempted when imported by dealers under the VAT Act. · Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
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Packing material of any kind designed for packaging goods for export |
Exempted from all taxes when imported with an intention of packaging goods meant for export, 2004. |
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No Stamp duty on debentures, lease of land, Increase of share capital, transfer of land. |
Beneficiary: Operator within an industrial park or free zone or an operator of a single factory or other business outside the industrial park who Invests in 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 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 citi-zens who must take up at least 70% of the wage bill. |
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Ploughs, Harrows, seeders, planters and transplants, manure spreaders and fertilizer distributors |
· VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
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Fertilizers A fertilizer is any material of natural or synthetic origin (other than liming materials) that is applied to soils or to plant tissues (usually leaves) to supply one or more plant nutrients essential to the growth of plants |
· Exempted from all taxes under the 5th Schedule of the East African Community Customs Management Act, 2004 upon approval by the Ministry of Agriculture, Animal Industry and Fisheries. |
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Seeds for sowing, spores and cut plants
A seed is an embryonic plant enclosed in a protective outer covering. |
· Exempted from all taxes under fifth schedule of the East African Community Customs Management Act, 2004 upon approval by Ministry of Agriculture Animal Industry and Fisheries. |
In case of further assistance, visit the nearest URA office for assistance or call the toll-free lines 0800117000/0800217000 or WhatsApp: 0772140000
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