ESOLO LO AMEDA (INCOME TAX)

Lo edumuni aisigalikinet (Beneficiary)

Aisigalikineta (Incentives)

Apak/awojau na aisigalikinet (Period of Incentive)

Nu ebeit lo adumunan aswam (Conditions for the Tax Incentive)

Lu itosomaete itunga lu engwalangwalauna (Private employers of  persons with disabilities (PWDs))

Etiakaro iyarei angun kwatat (2%) kotoma ameda na aswamisio nu etosomaete itunga lu engwalangwalauna

Apaarasia keere (indefinite)

Ekoto eswamak lu engwalangwalauna oraasi ikany angun kwatat lu eswamak keere (5% of employees must be PWDs)

Atacak Esolo lu erimaaka (Compliant taxpayers)

Mam itatacio esolo lo etiakanaro lo ikany ape angun kwatat (6% WHT exemption)

Ilapio itomon aarei ido epedoro aisiteteun (12 months renewable)

Arai edaunit lo epoloikit URA aimonikin ebe erai atacan esolo lo duc erimarit nu ebeit ngesi aswam kokwap ana ikisila lu esolo

Atacak Keere lu Esolo (All taxpayers)

Ecamakitai atiakar eitiyai keere lo igaraman keere lu edumuna anu aingic ajenun epone lo eitojokar eswamae (Scientific research)

Mam enangi (indefinite)

Itunganan yen etaci igaraman lu aingic/airere (A person who incurs expenditure for scientific research)

Atacak Keere lu Esolo (All taxpayers)

Ecamakitai atiakar eitiyai keere lo igaraman keere lu edumuna anu aitutuonor (100% deduction of training expenditure)

Mam enangi (indefinite)

Isomeroi (employers) lu itutuonorete itunga lu iboiyete o Uganda apaarasia keere (permanent residents) arai lu eyaunete asioman na okuju (tertiary education) kotoma apak na edoli ikaru ikany kwap etukokin keere (not exceeding in the aggregate 5 years)

Ageun aiduk arai aisubus na esomero lo itutuonori ejaanakinak ka adukok (vocational or technical institutes).

Mam itatacio esolo lo VAT anu aswamisio nu aingic eroko egeyara aswam ka aiduk ainapeta (feasibility study and design) ka agwelaro na iboro alu iswamatai o Uganda anu eiswama ice iboro (locally produced raw materials and inputs).

Mam enangi (indefinite) 

Ekoto aisubus orai na edoli idolas lu America imilionin itomon ($10M) arai erai esubusi lo okinga (foreign investors), arai idolas lu America ilukumin akwat auni ($300,000) arai eria esubusi lo Okide na Africa (EAC citizen) arai idolas lu America ilukumin Akwatat Akais Akany (USD 150,000) arai ejai esomero ngon kinga na o’Kampala.

Egeunete do aisigalinikineta apaaran na egeunor aisubus na elimoritai.

Aisubs na lem ejai sek da epedori adumun aisigaikinet na arai ejai ngesi aiboisit ngin na etiakunitai anu mam aitatac esolo (industrial park or free zone)

Ekotokin do esubusi aitosom iboro lu iswamatai/edumuno o Uganda lu akais akany aarei adepar angun kwatat (70% local raw materials)

Ekotokin da bobo esubusi eitosom eswamak da lu eraasi akais akany aarei angun kwatat (70%)  lu okide na Africa ido oraasi lu etaci ngesi eropit lo edolit akais akany aarei (70%) angun kwatat lu eitiai alo eropit ke lo etaci ngesi eswamak keere (70% of the wage bill).

Agwelanarak lu iboro alu esioman (Suppliers of educational materials)

Itatacio esolo lo enoot anu iboro alu asioman (Zero rating of supply of educational materials).

Mam enangi (indefinite) 

Imoriarit iboro lu asioman lu iswamatai o Uganda ka akwapin nu iswamanara ko kide na Africa (partner states of the  EAC)

ERIONGET LO ASIOMAN KA ABOLIASO (EDUCATION AND SPORTS SECTOR)        

Nu aileleba (Description)

Aisigalikinet na esolo (Tax incentive)

Iboro/iswamaeta lu asioman (Educational materials). Abunget D (Annex D) na acamanar na ebe “Florence Agreement”. Iswamaeta lu ekotore bon bon anu aisisianakina arai anu angicia (pure scientific research) bon bon ebe:

Iswamaeta ngun ijukakitai isomeroi/etiosomak lu apugan arai ikulepek lu edaunitos ejukak iboro ngun akwapin (importing countries) acamakin anu eijukakin iboro lu do mam aitatac esolo. Ekoto do epone iboro alu itosomaete kojaasi kwap na isomeroi alu:

• Iswamaeta kere lu asioman lu ecamakitai lu imarimaritai kotoma acamanar na ebe Florence Agreement mam itatacio esolo kokwap ana aibunget na ikanyet na esolo alo ikalotok lo Okide na Africa. (Exempted under fifth schedule of the East African Community Customs Management Act)

(Florence Agreement ngesi acamanar na ikamunit aitolosio na iboro alu ikamunitos asioman, scienfic ka einono)

•      Ekoto omam iswamaeta lu oraasi lu epedoro aiswamaun akwap angina ana ijukaro kesi. Arai ekoto omamete bobo lu eputosi arai lu iswamaete ka akesi kotoma akwap na ijukaro iboro ngun.

Kiitunite ebe, araasi do nu akiro nu etiakunitai kotoma aiwadikaet na epol. Isinyikoikitai ijo adumun aiwadikaet keere ane ejaasi aiwadikaeta nu ikamunitos iboro lu eyauno akwapin.

Iswamaeta lu asioman

•   Eyangaritai kwape lu etacete esolo lo enoot angun kwatat anu esolo alo VAT. Katemasi itabon lu asioman (text books)

Asetin nu aimar nu itosomao anu aswamisio nu asioman (Mathematical sets & geometry sets used in educational services)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin ( Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Acuman nu ikeere/itemonokinere abawoi (Woodworking machines)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Acuman nu etatatere/eruconokinere aswa (Welding machines)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Acalanin/Acuman nu edonyere igoen (Sewing machines)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Ikalai (Crayons), ikalamun lu iragin (coloured pencils), ikalamun (lead pencils), arulas (rulers), arabas/aipuseta nu ekalamu (erasers), apapulai nu igirere (stencils), asetin nu inomere (technical drawing sets), acobilai nu didik nu asioman (educational computer tablets), aigereta nu ijerakino acobilait anu aisisianakina (educational computer applications) arai inyaleta lu isisianakire nu epone lo ejaatar iboro  (laboratory chemicals for teaching science subjects used in educational services).

•    Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

Itabon lu Aisisianakin (Text books)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Ibaibulin (Bible)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

Ekoran (Qur’an)

·       Mam itatacio esolo lo VAT kokwap na ekisil lo esolo lo VAT.

·       Esolo lo ayaun iboro akwapin   (Import duty) erai lo enoot angun kwatat (import duty 0%) kokwap na ekisil lo  esolo alo emoritai kokide na Africa (East African Community Common External Tariff)

INCOME TAX

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax Incentive

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

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

100% deduction of training expenditure

Indefinite

Employers who train permanent residents or provide tertiary education not exceeding in the aggregate 5 years

Investment in establishing or operating vocational

or technical institutes.

No VAT on the supply of feasibility study and design services and on the supply of locally produced raw materials and inputs.

Indefinite

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 applies 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 citizens who must take up at least 70% of the wage bill.

The investor must use at least 70% of locally sourced raw materials subject to their availability, capacity to employ at least 70% EAC citizens who must take up at least 70% of the wage bill.

Suppliers of educational materials

Zero rating of supply of educational materials.

Indefinite

Includes educational materials manufactured in Uganda and the partner states of the  EAC

EDUCATION AND SPORTS SECTOR        

Description

Tax incentive

Educational materials. Annex D to the Florence Agreement Scientific instruments or apparatus, intended exclusively for educational purposes or pure scientific research,

provided:

That such scientific instruments or apparatus are consigned to public or private scientific or

• All approved educational articles and materials as specified in the Florence agreement are tax exempt under the fifth schedule

of the East African Community Customs  Management Act

educational institutions approved by the competent authorities of the importing country for the purpose

of duty-free entry of these types of articles, and used under the control and responsibility of these institutions;

•      That instruments or apparatus of equivalent scientific value are not being manufactured in the country of importation.

Please take note that this is an excerpt of the main text. You are encouraged to look at the whole text for the relevant provision applicable to the goods you have imported.

Educational material

•   Treated as zero-rated item for VAT purposes i.e. text books

Mathematical sets & geometry sets used in educational services

•    Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff

Woodworking machines

•    Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff

Welding machines

•   Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff

Sewing machines

•    Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff

Crayons, coloured pencils, lead pencils, rulers, erasers, stencils, technical drawing sets, educational computer tablets, educational computer applications or laboratory chemicals for teaching science subjects used in educational services.

•    Exempted from VAT under  the VAT Act.

Textbooks

•    Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff

Bible

•   Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff

Qur’an

•   Exempted from VAT under the VAT Act.

Import duty is 0% under East African Community Common External Tariff