Several tax bills propose changes to various tax laws in Uganda, set to take effect on July 1, 2025, if approved by the president. An overview of the bills and their proposals is provided below.
Income Tax (Amendment) Bill 2025
- 聽Extension of the tax exemption for Bujagali hydro power project until June 30, 2032
- Introduction of a three-year income tax exemption for new start-up businesses established by citizens with investment capital not exceeding UGX 500 million
- Clarification in Section 21 (ae) (vii) that tax exemptions apply only to chemicals intended for agricultural or industrial use
- Expansion of the definition of reorganization to include asset transfers to any person, excluding individuals controlled by the transferor or shareholders
- Imposition of a 15% withholding tax on income from digital services provided by nonresidents to associates in Uganda, replacing the 5% digital services tax
- Exemption of income earned by the International Atomic Energy Agency (IAEA)
Value Added Tax (Amendment) Bill
- Introduction of an anti-fragmentation rule for imported goods declared as separate consignments to prevent value added tax (VAT) registration avoidance
- Inclusion of United Nations related agencies and specialized agencies in the VAT exemption list
- Exemption of certain goods and services, including deep cycle batteries, solar lanterns, and specific textile-related items
- Repeal of VAT exemption on billets for further value addition
- Exemption of biomass pellets to promote renewable energy
- VAT rate of 0% on aircraft supply to incentivize investment in aircraft purchase
Tax Procedures Code (Amendment) Bill, 2025
- Use of national identification numbers (NINs) business registration numbers (BRNs) as tax identification numbers (TINs)
- Waiver of interest and penalty on principal tax outstanding as of June 30, 2024, if paid by June 30, 2026
- Revised penalties for non-compliance with the Electronic Fiscal Receipting and Invoicing Solution (EFRIS)
- Introduction of a centralized payments gateway system for gaming and betting activities
- Penal tax for non-compliance with the gaming and betting centralized payments gateway system
- Requirement for taxpayers to maintain compliance with tax exemption requirements
Excise Duty (Amendment) Bill, 2025
- Remission of excise duty paid on damaged, expired, or obsolete goods
- Revision of excise duty rates on certain goods, including cigarettes, beer, fruit juice, gasoline, gas oil, and plastics
Stamp Duty (Amendment) Bill, 2025
- Nil (0%) duty for agreements or memorandum of agreements and mortgage deeds
External Trade (Amendment) Bill, 2025
- Introduction of a 1.5% infrastructure levy on all imports for home use
- Introduction of a 1% import declaration fee on all goods imported for home use
- Introduction of an export levy of U.S. $10 per metric tonne on wheat bran, cotton cake, and maize bran
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