TAX HOLIDAYS for Investors in Uganda

by Jamina
(Uganda)

Tax Question
Can an investor enjoy tax holidays and if so how can he or she ensure such tax exemptions?

Answer

In 1996, the government abolished all exemptions that were based on the discretionary powers of the Ministry of Finance. The Income Tax Act was enacted in 1997 eliminating most discretionary tax exemptions and some tax incentives.

The government has however since provided various tax incentives in the respective tax laws saying it is geared towards ease of administration and transparency.

Some of these incentives include; capital investment allowances and tax exemptions for exporters under the Income Tax Act; deferral of VAT and VAT exemptions under the VAT statute and; exemptions on raw materials, plant and machinery imports, and sector specific incentives for hospitals, hotels, pharmaceuticals, assemblers, and manufacturers of exercise and text books under the East African Customs Management Act.

Contact a certified Africa Uganda Tax consultant to find out the applicable tax incentives for your planned investment in Uganda.