My rights as a taxpayer                                                        

My obligations as a taxpayer

Right to equity and fair treatment before the law.

Ensure that you voluntarily register with Uganda Revenue Authority as a taxpayer.

Tax laws and procedures shall be applied consistently to you

File correct tax returns, customs entries or   any forms relating to taxes and other revenue.

All your tax affairs shall be handled with impartiality.

Pay the correct tax at the right time and place as required by the relevant laws.

You and your agent(s) shall be presumed honest until proven otherwise.

Be honest when dealing with URA.

Your tax affairs shall be kept secret and tax information in our possession shall be used in accordance with the law.

In handling your tax matters, you and or your appointed agent(s) shall be expected to deal and cooperate only with the Authority’s authorized staff.

You and your authorized agent(s) shall be provided with clear, precise and timely information.

Quote your Tax Identification Number (TIN) for all dealings with URA.

You shall always pay the correct tax.

Do not involve yourself in any form of tax evasion and other illegal practices.

You will receive courteous and professional services at all times

When you are importing or exporting cargo, employ services of a licensed customs agent to complete customs entries and related clearance formalities.

You will receive timely, clear and accurate responses to your enquiries, complaints and requests

Make full disclosure of information and correct declaration of all transactions at all times.

You will be availed with reasons for any decision taken.

Let URA know if you need an interpreter.

You shall be sensitized about your tax obligations

Beware of and comply with customs quarantine, wildlife, currency and passenger concession.

Your tax objections shall be attended to in accordance with the relevant laws & procedures.

When you are travelling, ensure that you have accurately completed all the necessary forms before you reach the arrival/departure processing point.

You shall be facilitated to exercise your right (s) of appeal both within the organization and to an independent tax tribunal in accordance with the law.

Declare your goods on arrival and have them ready for inspection

You shall be given prior notice whenever your premise(s) are to be subjected to routine inspection or if an audit is to be conducted.

Treat URA staff fairly and with respect

ANNUAL CHARGEABLE INCOME (CY) IN UGX

RATE OF TAX

0 to 2,820,000

Nil

2,820,000 to 4,020,000

(CY – 2,820,000UGX) x 10%

4,020,000 to 4,920,000

(CY – 4,020,000UGX) x 20% + 120,000UGX

4,920,000 to 120,000,000

(CY – 4,920,000UGX) x 30% + 300,000UGX

Above 120,000,000

[(CY – 4,920,000UGX) x 30% + 300,000UGX] + [(CY – 120,000,000UGX) x 10%]

ANNUAL CHARGEABLE INCOME (CY) IN UGX

RATE OF TAX

0 to 4,020,000

CY x 10%

4,020,000 to 4,920,000

(CY – 4,020,000UGX) x 20% + 402,000UGX

4,920,000 to 120,000,000

(CY – 4,920,000UGX) x 30% + 582,000UGX

Above 120,000,000

[(CY – 4,920,000UGX) x 30% + 582,000UGX] +[(CY – 120,000,000UGX) x 10%]

EXCISE DUTY

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax Incentive

Developer of an industrial park/free

zone

Exemption of income derived from renting out or leasing facilities established in an industrial park or free zone.

10 years

Must invest a minimum

of USD 50m for foreign investors or USD 10m for EAC citizens, Incentive takes

effect from the date of commencement of construction. Also applies to an existing

investor making an additional investment of the same value.

Collective Investment Schemes to the extent of distribution.

Income tax exemption for Collective Investment Schemes

Indefinite

Must be licensed to operate as a collective investment scheme. Participants in the scheme should not have day to day control over the

management of the property. Participants contributions and ultimate income/ profits must be pooled Property must be managed as a whole by the operator of the scheme

Private employers of persons with disabilities (PWDs)

Deduction of 2% Income tax for employers that employ PWDs

Indefinite

5% of employees must be PWDs

Compliant taxpayers

6% WHT exemption on payment for goods and services and professional fees

12 months renewable

Where the Commissioner is satisfied that the taxpayer has regularly

complied with the obligations under the tax laws

All taxpayers

100% deduction of Scientific research expenditure

Indefinite

A person who incurs expenditure for scientific research

All taxpayers

Initial allowance and Depreciation allowance: Initial Allowance – capital deduction of 50% of qualifying Plant

& machinery and 20% on Industrial building placed in the radius

of 50Km outside the boundaries of Kampala. Person who places depreciable assets in service e.g. computers, automobiles, specialized trucks, tractors, plant and machinery used in farming, manufacturing or mining operations, trailers and trailer mounted containers; and Industrial building deduction of 5% on cost of construction

straight line method for

20 years.

Indefinite

All taxpayers with depreciable assets

All taxpayers

Carry forward losses: Assessed loss is carried forward as a deduction in the following year of income.

Duration of the loss

All taxpayers

Investor established in a country with which Uganda has a DTA

Double Taxation Agreements (DTA): Investors from countries with active DTA’s with Uganda i.e. United Kingdom, Denmark, Norway, South Africa, India, Italy, Netherlands and Mauritius Withholding tax rates applicable to dividends, interests, management fees and royalties are 10% except UK at 15%

Duration of the DTA

Beneficial owner of investment as defined in the Income Tax Act established with economic substance in a country with which Uganda has a DTA.

VAT ACT

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax incentive

Developer of an industrial park

or free zone

No VAT on any payment for feasibility studies, design construction services, construction materials and earth moving equipment and machinery.

Duration of the

development

The investment must be

at least USD 50m. The development must be for an industrial park or free zone.

VAT Registered taxpayers

VAT registered persons claim all the VAT incurred.

Indefinite

Turnover of UGX 150m in any 12-month period for first time registration, ability to keep proper books of accounts and making taxable supplies.

STAMP DUTY ACT

Beneficiary

Incentives

Period of Incentive

Tax incentive

Developer of an industrial park/free zone

No Stamp duty on debentures, lease of land, Increase of share capital, transfer of land.

Duration of development

Must invest a minimum of USD 50m and incentive takes effect from the date of commencement of construction.

Loan applicants

NIL stamp duty on an agreement relating to the deposit of title-deeds, pawn pledge-of the total value.

Indefinite

Agreement relating to the deposit of title-deeds, pawn pledge-of the total value.

Loan applicants

NIL stamp duty on security bond or mortgage deed.

Indefinite

Security bond or mortgage deed executed by way of security for the due execution of an office, or to account

for money or other property received by virtue of security bond or mortgage deed executed by a surety to secure a loan or credit facility-of entry value.