Pharmaceutical Manufacturers

Pharmaceutical manufacturing is the process of production, preparation, propagation, compounding, conversion, or processing of prescription drugs.

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 All businesses in the health sector in Uganda are required to be registered with

  • Uganda Registration Services Bureau (URSB) for company registration
  • Uganda Revenue Authority (URA) for taxes
  • Local Authorities such KCCA/Municipal Council for license

Please note

Upon registration, players in the pharmacy industry are required to comply with relevant authorities like:

  • Ministry of Health
  • National Drug Authority (NDA)

 

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

lick here for details on requirements for registration

 

 

Click here for your rights as a taxpayer

Click here for  obligations as a taxpayer

 

Corporation tax

This is tax imposed on all companies in Uganda at a standard rate of 30%. A business in this sector must register for this tax.

Individual income tax

In this sector, the listed directors in the pharmaceutical entity are expected to file a provisional return the course of the year and a final return after close of the year, in the event that they don’t appear in the company’s payroll.

 Pay As You Earn (PAYE)

Any person managing a pharmacy business and has employees earning a monthly salary more than 235,000 is required to register for Pay as You Earn (PAYE), withhold and remit tax to URA.

Click here for PAYE rates

Withholding tax

Withholding tax (WHT) is income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee). The rate is 6% withheld and remitted to URA

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.

 

Click here for information on how to file your return.

 

After filing a return, you’re required to pay the resultant tax using available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.

Click here to register a payment

 

 

Incentives

Condition for the tax incentives

Packaging material

for medicines

Exempted from all taxes under the 5th schedule of the East African Community

Customs Management Act, 2004

Examination gloves for laboratory and medical use.

Exempted from all taxes under the 5th schedule of the East African Community

Customs Management Act, 2004

Raw materials for the manufacture of medicaments

Exempted from all taxes under the 5th schedule of the East African Community

Customs Management Act, 2004

Syringes.

A medical device that is used to inject fluid into, or withdraw fluid from, the body. A medical

syringe consists of a needle attached to a hollow cylinder that

is fitted with a sliding

plunger

Exempted from VAT under the VAT Act. Import duty

is 0% under East African Community Common External Tariff.

Heating, ventilating and air conditioning equipment for

pharmaceutical manufacturers.

Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004

The supply of imported drugs and medicines

It is exempted from VAT under the provision of the VAT Act and attracts import duty of 0% under the EAC CET

Medical Autoclaves. A medical autoclave is a device that uses steam to sterilize equipment and other objects. This means that all bacteria, viruses, fungi, and spores are inactivated

Exempted from VAT under the VAT Act. Import duty

is 0% under East African Community Common External Tariff.

 

For more information, visit the nearest URA office for assistance or call the toll-free line 0800117000/0800217000 or WhatsApp: 077214000

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