Pharmaceutical Manufacturers
Pharmaceutical manufacturing is the process of production, preparation, propagation, compounding, conversion, or processing of prescription drugs.
 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)
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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
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- 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
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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.
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Click here for information on how to file your return.
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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
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Incentives |
Condition for the tax incentives |
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Packaging material for medicines |
Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
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Examination gloves for laboratory and medical use. |
Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
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Raw materials for the manufacture of medicaments |
Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
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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. |
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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 |
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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 |
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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. |
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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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