Agriculture

What is Poultry farming?

Poultry farming is the raising of domestic birds such as chickens, turkeys, ducks, and geese, for subsistence or commercial purpose. 

Who are the key players in poultry farming sub-sector in Uganda?

The key players in poultry farming include;

  • Poultry farmers
  • Poultry breeders and hatcheries; who keep parent stock birds for production of day-old chicks
  • Poultry feed processors
  • Poultry drug sellers such as veterinary shops.
  • Poultry product traders.
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  • In case you need to register a name for your poultry business, you can visit Uganda Registration Services Bureau (URSB).
  • You will be issued with a Certificate of incorporation if you register a company or a certificate of registration if you register a business name.
  • Players in the sector that plan to open physical offices, should secure a trading license from KCCA / Municipal council
  • Uganda Revenue Authority for taxes (Acquisition of a TIN)

Please note: Upon registration, the farmer is required to comply with the requirements of the Ministry of Agriculture, animal industry and fisheries.

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

Click here for your rights as a taxpayer.

Click here for your obligations as a taxpayer.

Corporation tax

It’s a tax imposed on non-individual players in the sector at a standard rate of 30%.

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 will apply to a sector player who has employees (administrative or causal laborers) that earn an aggregate in excess of 235,000 per month. This form of tax is withheld every month.

Click here for PAYE rates

Withholding tax (WHT) at importation

This is income tax withheld at importation of a good. It is at a rate of 6% of customs value (WHT = Customs value x 6%).

If a livestock farmer chooses to import supplies exceeding UGX 1,000,000, it is required to charge withholding tax at a rate of 6% which is later remitted to URA.

It can be used to clear part of the tax payable by the farmer when filing the final income tax return.

Note. If the importer is exempted from WHT, he/she should not be charged this tax at importation

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 the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, 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

 

Description

Tax incentive

NIL stamp duty on agricultural insurance policies

Beneficiary: Agricultural insurance

VAT Exemption on agricultural supplies: animal feeds and premixes, crop extension services, irrigation works and sprinklers, supply of agriculture insurance, etc.

Taxpayers in agricultural sector.

WHT exemption on agricultural supplies

All agricultural supplies

Recognition of losses

If for any year of income, the total business income earned by a taxpayer is less than the total expenses relating to the generation of the business income, the excess (loss) shall be carried forward and allowed as a loss in the following year.

Note that it must be declared and proved by URA in the current year of income as a loss.

 

Veterinary Chemicals (Acaricides)

·   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.

 

Imported inputs by persons engaged in horticulture, agriculture

or floriculture and

aquaculture sector e.g.

hatching eggs, day old chicks, semen, fish eggs, Fry / fingerling (young fish), seeds, green houses/

materials used in construction of green houses, flower cuttings,

incubators, hatcheries

etc.

 

 

Poultry parent stock imported by persons engaged in poultry farming.

A broiler and layer breeder farms raise parent stock which produce fertilized eggs.

A broiler/layer hatching egg is never sold in shops and is not meant for human consumption but for hatching into day old chicks.

•    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.

     Read more on A GUIDE TO TAXATION OF AGRICULTURAL SECTOR

Click to download Agricultural Sector Guide
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