Uganda's Domestic Tax Laws Compendium 2020

DOMESTIC AND INTERNATIONAL TAXATION IN UGANDA:
The Law, Principles and Practice – 2nd
Edition
Joseph O. Okuja
An Updated and Tracked Compendium containing a reproduction,
with amendments, of the Income Tax Act, the Value Added Tax Act,
the Excise Duty Act, the Stamp Duty Act, the Tax Procedures Code
Act, the Lotteries and Gaming Act, and the Tax Appeals Tribunals
Act. It also contains Subsidiary Legislation by the Minister of
Finance, and Practice Notes by the Commissioner General, Finance
Act Extracts, and the Exemptions Regime under the 5th
Schedule of
the East African Community Customs Management Act.
© 2020
Hybrid Edition
DOMESTIC TAX LAWS
OF UGANDA

Domestic Tax Laws Compendium 2020
Table of Contents
DISCLAIMER.............................................................................................V
REFERENCE GUIDE ..................................................................................VI
GENERAL GUIDANCE ..............................................................................................................VI
FOOTNOTES............................................................................................................................VI
CROSS-REFERENCES TO EXPLANATORY NOTES.....................................................................VII
OVERVIEW OF TAXES COVERED IN THIS COMPENDIUM......................................................VIII
INCOME TAX ACT................................................................................. - 1 -
PART I – PRELIMINARY ........................................................................................................- 9 -
PART II – IMPOSITION OF TAX...........................................................................................- 21 -
PART III – RESIDENTS AND NON-RESIDENTS .....................................................................- 25 -
PART IV – CHARGEABLE INCOME......................................................................................- 27 -
PART V – TAX ACCOUNTING PRINCIPLES ..........................................................................- 58 -
PART VI – GAINS AND LOSSES ON DISPOSAL OF ASSETS...................................................- 65 -
PART VII – RULES FOR DETERMINING CHARGEABLE INCOME ..........................................- 69 -
PART VIII – PERSONS ASSESSABLE.....................................................................................- 72 -
PART IX – INTERNATIONAL TAXATION ..............................................................................- 84 -
PART IX A – TAXATION OF PETROLEUM OPERATIONS......................................................- 98 -
PART X – ANTI AVOIDANCE .............................................................................................- 119 -
PART XI – PROCEDURE RELATING TO INCOME TAX ........................................................- 120 -
PART XII – PROCEDURE RELATING TO RENTAL TAX ........................................................- 126 -
PART XIII – WITHHOLDING OF TAX AT THE SOURCE .......................................................- 126 -
PART XIV – RECORDS AND INFORMATION COLLECTION.................................................- 136 -
PART XV – OFFENCES AND PENALTIES ............................................................................- 138 -
PART XVI – ADMINISTRATION .........................................................................................- 139 -
PART XVII - MISCELLANEOUS ..........................................................................................- 140 -
FIRST SCHEDULE..............................................................................................................- 145 -
SECOND SCHEDULE .........................................................................................................- 147 -
THIRD SCHEDULE.............................................................................................................- 151 -
FOURTH SCHEDULE .........................................................................................................- 157 -
FIFTH SCHEDULE..............................................................................................................- 159 -
SIXTH SCHEDULE .............................................................................................................- 162 -
SEVENTH SCHEDULE........................................................................................................- 163 -
EIGHTH SCHEDULE .........................................................................................................- 163 -
SUBSIDIARY LEGISLATION ...............................................................................................- 164 -
INCOME TAX (Withholding Tax) REGULATIONS, 2000 ....................................................- 164 -
INCOME TAX (Approved Industrial Buildings) REGULATIONS, 2003...............................- 172 -
INCOME TAX (Tax Incentives for Exporters) REGULATIONS, 2009..................................- 174 -
INCOME TAX (Transfer Pricing) REGULATIONS, 2011 .....................................................- 182 -
INCOME TAX (Designation of Payers) NOTICE, 2018 ......................................................- 190 -
PRACTICE NOTES .............................................................................................................- 284 -

VALUE ADDED TAX ACT.................................................................... - 305 -
PART I - PRELIMINARY.....................................................................................................- 309 -
PART II - CHARGE OF TAX................................................................................................- 314 -
PART III - TAXABLE PERSONS...........................................................................................- 315 -
PART IV - SUPPLIES OF GOODS AND SERVICES ...............................................................- 320 -
PART V - TAXABLE SUPPLIES ...........................................................................................- 325 -
PART VI - TAXABLE VALUE...............................................................................................- 327 -
PART VII -CALCULATION OF TAX PAYABLE......................................................................- 329 -
PART VIII - PROCEDURE AND ADMINISTRATION OF TAX................................................- 337 -
PART VIIIA - OBJECTIONS AND APPEALS ........................................................................- 337 -
PART IX - GENERAL PROVISIONS.....................................................................................- 347 -
FIRST SCHEDULE..............................................................................................................- 351 -
SECOND SCHEDULE.........................................................................................................- 354 -
THIRD SCHEDULE ............................................................................................................- 364 -
FOURTH SCHEDULE.........................................................................................................- 366 -
FIFTH SCHEDULE .............................................................................................................- 370 -
SUBSIDIARY LEGISLATION...............................................................................................- 371 -
VALUE ADDED TAX REGULATIONS, 1996........................................................................- 371 -
VALUE ADDED TAX (Rate of Tax) ORDER, 2005 ..............................................................- 379 -
VALUE ADDED TAX (Rate of Tax) ORDER 2007 ...............................................................- 380 -
VALUE ADDED TAX (Rate of Tax) (Revocation) ORDER, 2009.........................................- 380 -
VALUE ADDED TAX (Deferment) REGULATIONS, 2013...................................................- 381 -
VALUE ADDED TAX (Tax Withholding) REGULATIONS, 2018 ..........................................- 384 -
VALUE ADDED TAX (Educational Materials) REGULATIONS, 2018 .................................- 386 -
VALUE ADDED TAX (Tax Withholding Agents) NOTICE, 2018 .........................................- 387 -
PRACTICE NOTES.............................................................................................................- 388 -
EAC CUSTOMS MANAGEMENT ACT - Extract..................................... - 397 -
5TH SCHEDULE - EXEMPTION REGIME............................................................................- 397 -
PART A - SPECIFIC EXEMPTIONS .....................................................................................- 397 -
PART B - GENERAL EXEMPTION ......................................................................................- 402 -
FINANCE ACTS - Extracts................................................................... - 416 -
FINANCE ACT, 1993 – Cap. 181.......................................................................................- 416 -
FINANCE ACT (No.2), 1994 – Cap 183.............................................................................- 416 -
FINANCE ACT (No.1), 1999 – Cap 187.............................................................................- 417 -
FINANCE ACT, 2006.........................................................................................................- 417 -
FINANCE ACT 2007..........................................................................................................- 418 -
FINANCE ACT 2008..........................................................................................................- 418 -
FINANCE (NO.2) 2002 (AM) ACT 2011 ............................................................................- 419 -
FINANCE ACT 2014..........................................................................................................- 419 -
FINANCE ACT 2013..........................................................................................................- 419 -
FEES PAYABLE UNDER SPECIFIED ENACTMENTS ............................................................- 419 -

EXCISE DUTY ACT, 2014.....................................................................- 423 -
PART II - IMPOSITION, LIABILITY AND PAYMENT OF EXCISE DUTY .................................- 430 -
PART III – REGISTRATION FOR EXCISABLE GOODS AND SERVICES..................................- 431 -
PART IV - CONTROL OF EXCISABLE GOODS.....................................................................- 432 -
PART V - PAYMENT, RETURNS, ASSESSMENTS AND APPEALS ........................................- 435 -
PART VI - MISCELLANEOUS .............................................................................................- 437 -
SCHEDULE 1.....................................................................................................................- 440 -
SCHEDULE 2.....................................................................................................................- 440 -
SCHEDULE 3.....................................................................................................................- 447 -
STAMP DUTY ACT, 2014....................................................................- 448 -
PART I - INTERPRETATION ...............................................................................................- 451 -
PART II - STAMP DUTY.....................................................................................................- 455 -
PART III - DETERMINATION AS TO STAMPS.....................................................................- 466 -
PART IV - INSTRUMENTS NOT DULY STAMPED...............................................................- 468 -
PART V - ALLOWANCES FOR SPOILED STAMPS IN CERTAIN CASES.................................- 473 -
PART VI - OBJECTIONS AND APPEALS..............................................................................- 476 -
PART VII - CRIMINAL OFFENCES AND PROCEDURE .........................................................- 482 -
PART VIII – MISCELLANEOUS...........................................................................................- 484 -
SCHEDULE 1.....................................................................................................................- 485 -
SCHEDULE 2.....................................................................................................................- 486 -
SCHEDULE 3.....................................................................................................................- 492 -
TAX PROCEDURES CODE ACT ............................................................- 494 -
PART II - REGISTRATION OF TAXPAYERS .........................................................................- 501 -
PART III - TAX AGENTS AND TAX REPRESENTATIVES.......................................................- 503 -
PART IV - RECORD-KEEPING ............................................................................................- 509 -
PART V - TAX RETURNS....................................................................................................- 510 -
PART VA - TAX STAMPS ..................................................................................................- 514 -
PART VI - TAX ASSESSMENTS...........................................................................................- 515 -
PART VII - OBJECTIONS AND APPEALS.............................................................................- 519 -
PART VIII - COLLECTION AND RECOVERY OF TAX............................................................- 521 -
PART IX - REMISSION OF TAX ..........................................................................................- 531 -
PART X - INVESTIGATIONS...............................................................................................- 531 -
PART XI - TAX CLEARANCE CERTIFICATES........................................................................- 533 -
PART XII - PRACTICE NOTES AND RULINGS .....................................................................- 534 -
PART XIII - TAX OFFICERS.................................................................................................- 536 -
PART XIV - PENAL TAX .....................................................................................................- 538 -
PART XV - OFFENCES .......................................................................................................- 540 -
PART XVI - MISCELLANEOUS ...........................................................................................- 547 -
SCHEDULE 1.....................................................................................................................- 552 -
SCHEDULE 2.....................................................................................................................- 552 -

SCHEDULE 3 ....................................................................................................................- 553 -
SCHEDULE 4 ...................................................................................................................- 553 -
STATUTORY INSTRUMENTS ............................................................................................- 554 -
TAX PROCEDURES CODE (Tax Stamps) REGULATIONS, 2018..........................................- 554 -
LOTTERIES AND GAMING ACT .......................................................... - 564 -
PART I—PRELIMINARY....................................................................................................- 568 -
PART II - NATIONAL LOTTERIES AND GAMING REGULATORY BOARD ............................- 570 -
PART III - FINANCES OF THE BOARD ...............................................................................- 571 -
PART IV - LICENSING AND REGULATION OF LOTTERIES..................................................- 571 -
PART V - CASINO, GAMING AND BETTING LICENCES......................................................- 572 -
PART VI - GAMING OR BETTING MACHINES ...................................................................- 572 -
PART VII - GENERAL PROVISIONS ON LICENCING ...........................................................- 572 -
PART VIII - CASINOS, GAMING AND BETTING ACTIVITIES...............................................- 573 -
PART IX - GENERAL..........................................................................................................- 575 -
SCHEDULE 1 ....................................................................................................................- 579 -
SCHEDULE 2 ....................................................................................................................- 579 -
SCHEDULE 3 ....................................................................................................................- 579 -
SCHEDULE 4 ....................................................................................................................- 580 -
SCHEDULE 5 ....................................................................................................................- 580 -
TAX APPEALS TRIBUNALS ACT .......................................................... - 581 -
PART I – INTERPRETATION..............................................................................................- 583 -
PART II - ESTABLISHMENT OF TAXATION APPEALS TRIBUNALS......................................- 584 -
PART III - ORGANISATION OF THE TRIBUNALS................................................................- 584 -
PART IV - REVIEW OF TAXATION DECISIONS ..................................................................- 585 -
PART V - MANAGEMENT OF THE TRIBUNALS .................................................................- 592 -
PART VI - OFFENCES AND PENALTIES..............................................................................- 593 -
PART VII - FINANCIAL PROVISIONS .................................................................................- 594 -
PART VIII – MISCELLANEOUS ..........................................................................................- 594 -
SCHEDULE .......................................................................................................................- 594 -

DISCLAIMER
Tax laws are among the most dynamic pieces of legislation since they are amended
almost every year to serve various economic and social goals of the government. This
necessitates that the laws are regularly updated with the various amendments for ease
of reference. This compendium contains an up-to-date reproduction of the Income
Tax Act, Cap. 340; the Value Added Tax Act, Cap. 349; the Excise Duty Act 2014
the Stamp Duty Act, the Tax Procedures Code Act, 2014, the Lotteries and Gaming
Act, 2016, and the Tax Appeals Tribunals Act, Cap.345. It also contains extracts
from Finance Acts and the Fifth Schedule (Exemption Regime) of the East African
Community Customs Management Act. Subsidiary legislation and practice notes
under the different tax laws are also included.
While reproducing the laws in this Compendium, the
by the Uganda Law Reform Commission was used as an authentic reference
for conformity. The reprint consolidated all the amendments to the Income Tax Act,
the Value Added Tax Act and Statutory Instruments made thereunder, since the
publication of the revised edition of the Laws of Uganda, 2000.
While great care has been taken to ensure that this reproduction is free of errors, it is
my humble request that in the event that you encounter any errors while making
reference to this compendium, kindly notify the undersigned. Anybody who relies on
this compendium for any purposes, including legal proceedings, is responsible for
ensuring its accuracy, novelty and completeness by conducting an independent
verification with the Principal Laws of Uganda as enacted by Parliament and/or
published by the Uganda Law Reform Commission. The undersigned cannot accept
responsibility for any errors or omissions; and shall not be held liable for any
misrepresentations arising out of its use.
This compilation is copyright. It is the personal effort and derivative work of the
undersigned. It is neither prepared by Order of the Government of Uganda nor does
it purport, if printed, to have been printed by the Government Printer or by or under
the authority of the Attorney General or Parliament, and cannot therefore, under any
circumstances, be a substitute for a Publication by the Government of Uganda
Joseph O. Okuja
Director – Tax & Regulatory Services
LIBRA | TASLAF Tax & Legal Consultants
2nd Floor, AHA TOWERS
7 Lourdel Road, Nakasero Kampala
Tel: +256 (0) 392 081345 | (0) 750 333800
Email: jokuja@libraconsultantsug.com
Web: www.libraconsultantsug.com
Skype: Joseph O. Okuja

REFERENCE GUIDE
GENERAL GUIDANCE
Tax Laws are structured into Parts, Sections and Schedules. Parts distinguish the
categories of information for ease of reference. Each Part deals with a specific subject
area and prescribes the rules or principles affecting the subject area. Sections have
headings which describe the subject matter dealt with in the Section, and are further
divided into subsections for purposes of organising information in the section.
Subsections may be further divided in paragraphs; and paragraphs into sub-
paragraphs. Schedules provide for rates of tax and detailed descriptions of the subject
matter under the different Parts and sections.
The enactment, passing or making of a law, and its operation or commencement are
two different things. A Bill passed by Parliament (an enactment) becomes law (an Act)
on the day it receives assent of the President. However, a law only begins to operate
from the date, or deemed date, of its commencement which is normally provided
within the law itself. In the absence of any commencement provision, an Act comes
into operation on the date of its publication as notified in the Gazette.
As a general rule, all provisions are considered to be prospective from the date of
commencement, except when made retrospective by express words in the law or by
necessary intention. In this case, the commencement of the Act is the date from which
it is given or deemed to be given that effect, but not before notification in the Gazette
as to the date of its publication.
Retrospective operation should not be given to a law if it takes away or impairs an
existing right, or creates a new obligation, or imposes a new liability. The only
exception to this general rule would be for matters of procedure. However, it is
important to note that the application of an amendment to an event or transaction
which is continuing and not complete when a new provision comes into force does
not amount to giving a retrospective operation to the law if it taxes that ongoing or
continuing event or transaction.
FOOTNOTES
❖ The Amendment Acts relied on for insertions, additions, substitutions or repeals
in this Compendium are indicated as Foot Notes in respect of the modified
provisions.
❖ An Amendment Act of any year normally has a commencement and effective date
of 1st July of that year (i.e. the first day of the financial year), unless stated
otherwise.

❖ Substitutions or insertions of words within original provisions are indicated in
italicized font, with a corresponding footnote for the Amendment Act relied on.
❖ Substitutions replacing or substantially altering the wording of existing or original
provisions or sections are indicated in normal font, but with footnotes for the
Amendment Act relied on.
❖ Insertions of new provisions are also indicated in normal font, with a
corresponding footnote for the Amendment Act relied on.
❖ Because of various amendments to some provisions, some substitutions or
insertions may be in bold normal font or bold italicized font, with a corresponding
footnote for the Amendment Act relied on. This is to distinguish between the
different Amendment Acts.
❖ Repealed substantive provisions, words or terms have not been deleted but
indicated in faded font, while repealed procedural provisions have been deleted.
This is because amended or repealed substantive provisions are still relevant for
application to tax periods prior to the amendment or repeal. Amendments
affecting procedure can be applied retrospectively to obligations that are still
outstanding at the time the amendment takes effect, unless the circumstances of
the obligation prevent, by implication, its application.
CROSS-REFERENCES TO EXPLANATORY NOTES
The words and expressions used in drafting tax law provisions are sometimes not
straight forward. When making reference to the law, a taxpayer may come to one
understanding after reading one part of a section, and yet change their view about the
tax consequence of a transaction after reading a later part, besides many sections
contain sub-sections which may require reading as a whole. Above all, there are many
deeming provisions that may result in the meaning of a word or an expression being
expanded by way of explanation and inclusion, and in other instances curtailed by way
of a proviso. Accordingly, in order to promote uniform application of the tax law
provisions, and provide information to readers about their duties, rights or
obligations, thus enhancing voluntary tax compliance, this Compendium has been
updated to include Footnotes that should enable readers to easily make reference to
Explanatory Notes in "DOMESTIC & INTERNATIONAL TAXATION IN
UGANDA: The Law, Principles and Practice". The Footnotes are cross-
references to specific pages in the book that attempt to provide guidance on how the
tax law provisions ought to be applied.
Please note that the book is not a section-by-section commentary of the provisions in
the tax laws, and by no means a definitive legal interpretation of the provisions of the
laws. However, the text sets out in simple language, what the tax laws seek to achieve.
This makes it a good reference source for readers who are not familiar with the

complexities of tax law, and even for those who may be legally qualified. Moreover,
the book already has cross-references to specific sections in the tax laws. This makes
the two books (this Compendium and the Text book) complementary to each other
and therefore a one-stop source for any question or answer regarding the tax laws and
its practice in Uganda.
OVERVIEW OF TAXES COVERED IN THIS COMPENDIUM
INCOME TAX ACT
Income tax is a tax that is charged annually or for each year of income (a period of
twelve months ending on 30th June, including a substituted year of income and a
transitional year of income). The tax is imposed on every person who has chargeable
income for a year of income. A person’s chargeable income is the gross income
(business, employment or property income) of a person for a year of income, less the
total amount of deductions allowed under the Act for that year.
Income tax is imposed as a direct tax on all types of income derived by a person, i.e.
individuals and entities, over a tax period. The tax is imposed directly on individuals
and businesses that derive taxable income. Direct taxation is defined as taxation
imposed upon the person who is intended to be the final bearer of the burden of
payment. The tax goes out of the pocket of the taxpayer after income has been earned.
Although the tax cost may be factored into the pricing of goods and services and the
burden accordingly shifted to the consumer, the tax charged is paid by the individual
or person in business. From a policy perspective, income taxes are generally imposed
in the country where the income is sourced, derived or earned; and income includes
the total sum of the different categories of income, namely business, employment and
property or investment incomes.
VALUE ADDED TAX ACT
VAT is a broad-based consumption tax that is imposed by the Act on the supply of
goods and services in Uganda, and on the import of goods and services into Uganda.
It is an indirect tax that is generally intended to tax the final consumption of goods
and services, although it is collected from the suppliers of the goods and services
rather than directly from the consumers. The tax is imposed in the country of
destination or in the country where goods and services are used, consumed or destined
for consumption. Export of goods or services for consumption or use outside Uganda
do not attract tax and are zero-rated.
VAT is an indirect tax because the consumers, in principle, bear the burden of the tax
as part of the market price of the goods or services that they purchase or consume,
but the tax is paid to the revenue authority by the supplier of the goods or services.
In other words, the burden of the tax falls on persons who are not VAT registered
and who consume goods or services from VAT registered suppliers. The tax is

imposed at the time of a transaction, and operates as an indirect tax on expenditure
relating to the consumption of goods and services either at the last point of sale to the
final consumer or on intermediate transactions between businesses.
EXCISE DUTY ACT
Excise Duty is an indirect form of taxation which is applied to a narrow base of goods
and services primarily considered ‘luxury’ or ‘consumer based’ in nature. It is a
consumption tax that is imposed at different stages of production and distribution,
and targets specific goods manufactured within or imported into the country. It is also
imposed on specific services provided in a country. The duty is characterised as
‘indirect” because the burden of the tax is transferred to, or passed on by the
manufacturer, importer or provider of the excisable good or service, to the final
consumers of the goods or services. Ultimately, consumption is taxed by virtue of the
effect of the tax in increasing the price of products.
STAMP DUTY ACT
Stamp duty is a tax imposed under the Stamp Duty Act, 2014 (SDA) and is payable
on certain legal documents (instruments) specified in the Second Schedule of the Act.
The duty is imposed on legal, commercial and financial instruments that emerge as a
result of transactions. If there is no physical instrument attesting to a transaction, the
question of stamp duty does not arise.
Stamp Duty is not imposed on transactions or persons, but on a physical instrument
attesting to a transaction. A stamp signifying the amount of Stamp Duty paid is
impressed or is fixed to the document. The duty is charged at either flat rates or ad
valorem (based on value) rates, depending on the particular document or value of the
transaction. Documents for which stamp duty has been paid are admissible as
evidence or legal proof in court. In other words, the tax indirectly allows proper
transactions to be performed and documents to be issued. Accordingly, any document
that is signed or has a signature is liable for Stamp Duty.
TAX PROCEDURES CODE ACT
Rights, duties and obligations that regulate the relationship between URA and
taxpayers are codified in an Act of Parliament titled the Tax Procedures Code Act
(TPCA). The TPCA is a consolidating statute that was enacted in 2014 with the aim
of presenting all domestic tax procedures under the principal tax laws (Income Tax
Act, Value Added Tax Act, Excise Duty Act, Stamp Duty Act and Lotteries and
Gaming Act) in a single Act of Parliament, thus simplifying and streamlining tax
administration procedures. The main aim of this law is to regulate the rights and
obligations of taxpayers and the tax administration, and to create a unified normative
system for all tax types by laying down basic principles of tax procedures and adapting

certain uniform procedures for registration, assessment and collection of taxes
administered by URA.
The TPCA and the other principal tax laws must be read together, and the TPCA
must not be construed in such a way as to repeal the provisions in the principal Acts,
or to take away rights conferred by those Acts unless the provisions of the principal
Acts are expressly altered by the TPCA, or if such alteration is a necessary inference
from the terms of the TPCA.
LOTTERIES AND GAMING ACT
Gambling is an activity that involves risking money on the outcome or result of a
game, with the desire of winning more money. Government earns revenue from
gambling activities through taxation of gambling income which includes winnings
from any gaming, lotteries, casinos and betting. The taxes imposed come in the form
of license and application fees, turnover tax, gaming tax, withholding tax and
corporate income tax. In cases where gambling constitutes a trade or business of the
taxpayer, gambling winnings and losses from both legal and illegal gambling, including
the fair market value of prizes, should be included in a person’s gross income.
Gambling winnings are also subject to withholding tax.
EAST AFRICAN COMMUNITY CUSTOMS ACT – 5th
SCHEDULE
Customs duties which primarily affect international trade are administered and
enforced by the Customs Department of URA. The term “Customs duty” means an
amount of tax based on the Customs tariff, which is levied on, collected from or paid
for goods entering or leaving the Customs territory of a country. All goods imported
into or exported from Uganda are subject to the provisions of the East African
Community Customs Management Act (EACCMA). Under the EAC Customs
Union, a common external tariff is applied on goods entering the Community; while
the movement of trade goods originating within the Community is free of duty.
Tariffs on imports represent a tax on the consumption of imported goods. Customs
duties assessed to and paid by any importer or exporter of goods is an indirect tax.
This implies that the taxes are levied on an import or export transaction. The term
“customs duty” means an amount of tax based on the Customs tariff, which is levied
on, collected from or paid for goods entering or leaving the Customs territory of a
country. Imports attract a number of import taxes such as import duty, VAT,
withholding tax, excise duty and other levies. These taxes constitute part of the cost
of importation that an importer must take into account. However, some imports may
be eligible for preference tax treatment or a duty relief depending on what goods are
being imported or what they are to be used for.

Income Tax Act Cap.340
INCOME TAX ACT
Cap.340, Laws of Uganda 2000
An Act to consolidate and amend the law relating to income tax and for other
connected purposes.
Commencement: 1st
July 1997
Arrangement of Sections
PART I – PRELIMINARY
1. Application of the Act
2. Interpretation
3. Associate
PART II – IMPOSITION OF TAX
4. Income tax imposed
5. Rental tax imposed
Rates of Tax
6. Rates of tax for individuals
7. Rate of income tax for companies
8. Rate of income tax for trustees and retirement funds
PART III – RESIDENTS AND NON-RESIDENTS
9. Resident individual
10. Resident company
11. Resident trust
12. Resident partnership
13. Resident retirement fund
14. Non-resident person
PART IV – CHARGEABLE INCOME
15. Chargeable income
16. Chargeable income arising from insurance business
17. Gross income
18. Business income
19. Employment income
20. Property income

Statutory Instruments ITA
SUBSIDIARY LEGISLATION
INCOME TAX (Withholding Tax) REGULATIONS, 2000438
(Under Section 116(1) and 164 of the Income Tax Act, 1997 Cap.340)
In exercise of the powers conferred upon the Minister by Section 164 of the Income
tax Act 1997, these Regulations are made this 1st
day of June 2000.
1. Short Title and Commencement
These Regulations may be cited as the Income Tax (Withholding Tax) Regulations,
2000, and shall be deemed to have come into force on the 1st
day of July 2000.
2. Interpretation
(1) In these Regulations, “Act” means the Income Tax Act, 1997.
(2) Terms and expressions used in these Regulations have, unless the contrary
intention appears, the same meaning as they have in the Act.
3. Amount of Tax to be Withheld
(1) Every employer obliged under Section 116 of the Act to withhold tax from a
payment of employment income to an employee shall withhold tax in
accordance with this regulation.
(2) Subject to sub-regulation (10), where employment income is paid monthly by
an employer to an employee and the employee has furnished the employer with
an employee declaration, the amount of tax to be withheld from the payment
for a month (referred to as the “current month”) is calculated according to the
following formula –
(A – B)/C
where –
A is the amount of tax payable calculated –
(a) in the case of an employee who is a resident individual, in
accordance with paragraph 1 of Part I of the Third Schedule to the
Act on the annualised employment income of the employee
calculated in accordance with sub-regulation (3); and
438
Refer to Explanatory Notes, Pg.304-306

Practice Notes ITA
PRACTICE NOTES
(Under Section 160 of the Income Tax Act) 444
These Practice Notes, which are binding on all URA officers unless altered or revoked,
were issued to achieve consistency in the administration of the Income Tax Act and
to provide guidance to taxpayers and officers of the Uganda Revenue Authority.
Practice Notes – 2001
ISSUE DATE : 2nd
November 2001
EFFECTIVE DATE : 1st
July 2001
ISSUED BY : Annebritt Aslund - CG
1. Recruitment Expenses
All expenses genuinely incurred by taxable employers in the recruitment of employees
should be treated as incurred in the production of income under Section 22 of the
ITA and allowed as a deduction.
2. Deduction of Bad Debts
(a) For persons other than financial institutions, a bad debt is allowed as a deduction
only if all reasonable steps for recovery have been taken and there is reasonable
ground that the debt will not be recovered.
(b) For financial institutions, specific reserves for identified losses or potential losses
are allowable as a deduction. For this purpose, in respect of financial institutions,
bad debts provided for in accordance with the Bank of Uganda Regulations are
allowable as a deduction. [Refer to Prudential Norms on Asset Quality for
Financial Institutions – Paragraph 12(1) to (6)]
(c) Paragraph 12(7) of the same Bank of Uganda Regulations provides for 1%
general provision on the total outstanding credit facilities. This 1% general
provision does not satisfy the requirements of Section 25 of the ITA and is
therefore not deductible.
(d) Any recoveries of previously written off bad debts will be treated as income and
taxed in the year in which the recoveries are made.
3. Initial Allowance
Placing “an item of eligible property into service for the first time…” should be interpreted to
mean for the first time in the taxpayer’s business. Therefore, where taxpayer ‘B’ buys
444

Value Added Tax Act Cap.349
VALUE ADDED TAX ACT
Cap.349, Laws of Uganda, 2000
An Act to provide for the imposition and collection of Value Added Tax, and for
other purposes connected to that tax.
Commencement: 1st
July 1996
PART I – PRELIMINARY
1. Interpretation
2. Interpretation of fair market value
3. Interpretation of associate
PART II – CHARGE OF TAX
4. Charge of tax
5. Person liable to pay tax
PART III – TAXABLE PERSONS
6. Taxable person
7. Persons required or permitted to register
8. Registration
9. Cancellation of registration
PART IV – SUPPLIES OF GOODS AND SERVICES
10. Supply of goods
11. Supply of services
12. Mixed supplies
13. Supply by agent
14. Time of supply
15. Place of supply of goods
16. Place of supply of services
17. Imports
PART V – TAXABLE SUPPLIES
18. Taxable supply
19. Exempt supply

Statutory Instruments VAT
SUBSIDIARY LEGISLATION
(Statutory Instruments and Regulations)
VALUE ADDED TAX REGULATIONS, 1996
(Under Section 78 of the ACT)
1. Citation and Commencement
These Regulations may be cited as the Value Added Tax Regulations.
2. Contracts entered into before and after 1st
July 1996
(1) Where a contract was concluded between two or more parties before the 1st
July
1996, and no provision relating to tax was made in the contract, the supplier
shall recover tax due on any taxable supplies made under the contract after 1st
July 1996.
(2) Where a contract concluded after 1st
July 1996 does not include a provision
relating to tax, the contract price shall be deemed to include the tax and the
supplier under the contract shall account for the tax due.
3. Tax paid on Capital Goods and Stock on Hand
Where after the 1st
July 1996, a person being registered has in stock plant and
machinery and other goods on which tax was paid prior to being registered, that
person shall be entitled to claim a credit of the tax on the goods which were purchased
within four months before the date of registration, and in the case of plant and
machinery, within six months before the date of registration.
4. Display of Registration Certificate
A registered taxpayer shall display the registration certificate issued under the Act at
his or her principal place of business.
5. New Investors
(1) A person who is approved by the Uganda Investment Authority as an investor
and who plans to make taxable supplies in due course, may apply to the
Commissioner General to be registered as an investment trader [for a period
not exceeding four years] 710
for a period of four years, renewable for another
period of four years. [Effective 1st July 2002]711
710
Substituted by VAT (Am) Regulations, 2007.
711
Revoked by VAT (Am) Regulations, 2011

Practice Notes VAT
PRACTICE NOTES
(Under Section 79 of the VATA) 728
These Practice Notes, which are binding on all URA officers unless altered or revoked,
were issued to achieve consistency in the administration of the Value Added Tax Act
and to provide guidance to taxpayers and officers of the Uganda Revenue Authority.
Practice Notes – 2007
ISSUE DATE : 18th June 2007
EFFECTIVE DATE :
ISSUED BY : Allen Kagina (Mrs) - Commissioner General
1. Definition of the Terms “Medical, Dental and Veterinary Equipment” for
VAT Purposes.
Paragraph 1(q) of the Second Schedule to the VAT Act provides that the supply of
dental, medical and veterinary equipment is an exempt supply.
Definition of Equipment
(a) The Act does not define the term equipment. This PN is therefore intended to
provide the meaning of what should be treated as medical, dental and veterinary
equipment.
(b) Medical, Dental and Veterinary equipment is any equipment or device which has
features or characteristics that identify it as having been designed to be used alone
or in combination for a medical, dental or veterinary purpose or function such as
the diagnosis, prevention, monitoring, treatment, alleviation of or compensation
for an injury and alleviation of disease in human beings and animals.
(c) The equipment/device will usually be durable although certain disposable items
such as syringes may still be equipment.
(d) Based on the above definition, medical, dental and veterinary equipment covers
a wide range of goods from simple items like bandages and syringes, to complex
machinery such as X-ray machines as well as parts and accessories for use with
the equipment.
(e) Parts and accessories will be treated as medical equipment/device if they are
intended specifically by manufacturers to be used together with the parent
medical device.
728

EACCMA Sch.5
EAST AFRICAN COMMUNITY
CUSTOMS MANAGEMENT ACT
Section 114
5TH SCHEDULE - EXEMPTION REGIME730
The following goods which are exempt from Import Duty under the 5th
Schedule of
the EACCMA are also VAT exempt at importation by virtue of section 20 of the VAT
Act. However, if and when these items are sold locally, they may attract VAT at 18%
subject to whether or not they are specifically exempted under the 2nd
Schedule of the
VAT Act.
PART A - SPECIFIC EXEMPTIONS
GOODS IMPORTED OR PURCHASED BEFORE CLEARANCE
THROUGH THE CUSTOMS BY OR ON BEHALF OF PRIVILEGED
PERSONS AND INSTITUTIONS
1. The Presidents
Goods for use by the Presidents of the Partner States.
2. Partner States Armed Forces and police731
All goods, including materials, supplies, equipment, machinery and motor vehicles for
the official use of Partner States Armed Forces, police and prison services.
3. Commonwealth and Other Governments
Goods consigned to officers or men on board a naval vessel belonging to another
Commonwealth Government for their personal use or for consumption on board
such vessel.
Goods for the use of any of the Armed Forces of any allied power.
730
731
Inserted by Legal Notice No. EAC/25/2011, EAC Gazette

Finance Acts Extracts
FINANCE ACTS - Extracts
FINANCE ACT, 1993 – Cap. 181
Commencement: 1 July, 1992
Stock Exchange Dividend
A person earning dividends from a company which came into existence through stock
exchange shall be exempted from the payment of income tax.
==================
FINANCE ACT (No.2), 1994 – Cap 183
Commencement: 17 June, 1994
PART II—MISCELLANEOUS PROVISIONS
6. Recovery of tax from successor and duty to notify discontinuance of
business.789
(1) Where a person carrying on any business liable to duty, levy or tax has been
succeeded by another person, and when the duty, levy or tax due and payable by
the person succeeded cannot be recovered from him or her, it shall be payable by
and recovered from the person succeeding him or her.
(2) If the person succeeding fails to pay the duty, levy or tax on the date fixed by the
Commissioner General, then the provisions of the law relating to the collection
and recovery of duty, levy or tax shall apply to the collection and recovery of the
amount due as if it were the duty or tax due and payable by the person succeeding.
(3) Any person intending to discontinue any business liable to duty or tax shall give
to the Commissioner General a notice of his or her intention thirty days before
the date of discontinuance, and where a person fails to give the notice required by
this section, the Commissioner General may direct that a sum not exceeding two
hundred thousand shillings be recovered from that person by way of penalty.
789

Excise Duty Act 2014
EXCISE DUTY ACT, 2014
An Act to consolidate and amend the law relating to excise duty and to provide
for related matters.
Date of Commencement: 1st July, 2014.
PART I - PRELIMINARY
1. Commencement
2. Interpretation
3. Associate
PART II - IMPOSITION, LIABILITY AND PAYMENT OF EXCISE
DUTY
4. Imposition of excise duty
PART III – REGISTRATION OF MANUFACTURERS, IMPORTERS
AND PROVIDERS OF EXCISABLE GOODS AND SERVICES
5. Registration of manufacturers, importers and providers of excisable goods and
services [Licence for premises]
PART IV - CONTROL OF EXCISABLE GOODS
6. Provision of facilities for excise control
7. Entry
8. Storage of excisable goods after manufacture
9. Deficiency or excess in stock
PART V - PAYMENT OF EXCISE DUTY, RETURNS, ASSESSMENTS
AND APPEALS
10. Payment of excise duty
11. Application of information technology
12. Refunds
13. Liability to duty on re- importation
14. Excisable goods or excisable services granted remission liable to duty on disposal
PART VI - MISCELLANEOUS

Stamp Duty Act 2014
STAMP DUTY ACT, 2014
An Act to consolidate and amend the law relating to stamp duty and to provide
for related matters.
ARRANGEMENT OF SECTIONS
Section
PART I – INTERPRETATION
1. Commencement.
2. Interpretation.
PART II - STAMP DUTY
3. Instruments chargeable with duty.
4. Several instruments used in single transaction of sale, mortgage or settlement.
5. Instruments relating to several distinct matters.
6. Instruments coming within several descriptions in Schedule 2.
7. Marine insurance contract to be expressed in marine policy.
8. Persons carrying on insurance business to file returns.
9. Stamp duty on capital of companies.
10. Expense of providing proper stamp.
11. Duties, how to be paid.
12. Denoting duty.
13. Provisions relating to duplicates and counterparts.
14. Instruments executed in Uganda.
15. Instruments executed outside Uganda.
16. Bills and notes drawn outside Uganda.
17. Conversion of amount expressed in foreign currencies.
18. Stock and marketable securities, how to be valued.
19. Effect of statement of rate of exchange or average price.
20. Instruments reserving interest.
21. Certain instruments connected with mortgages of marketable securities to be
chargeable as agreements.
22. How transfer in consideration of debt or subject to future payment to be charged.
23. Valuation in case of annuity.
24. Facts affecting duty to be set forth in instrument.
25. Direction as to duty in case of certain conveyances.
26. Reconstruction or amalgamation of companies.
27. Transfers between associated companies.
28. Transfers inter vivos

Tax Procedures Code Act 2014
TAX PROCEDURES CODE ACT
An Act to provide for a Code to regulate the procedures for the administration
of specified tax laws in Uganda; to harmonise and consolidate the tax
procedures under existing tax laws; and to provide for related matters.
Date of Assent: 19th
October, 2014
Date of Commencement: 1st
July 2016
1. Commencement
2. Application
3. Interpretation
PART II - REGISTRATION OF TAXPAYERS
4. Registration
5. Tax identification number
6. Deregistration
PART III - TAX AGENTS AND TAX REPRESENTATIVES
Registration of Tax Agents
7. Tax Agents Registration Committee
8. Tax Agents
9. Registration of tax agents
10. Renewal of registration
11. Registration of additional or substituted tax agents
12. Notice of change in registered particulars
13. Cancellation of tax agent’s registration
Tax Representatives
14. Liabilities and obligations of a tax representative
PART IV - RECORD-KEEPING
15. Accounts and records

Statutory Instruments TPCA
STATUTORY INSTRUMENTS
TAX PROCEDURES CODE
(Tax Stamps) REGULATIONS, 2018
(Under section 75 of the Tax Procedures Code Act, 2014)
STATUTORY INSTRUMENTS 2018 No. 53
IN EXERCISE of the powers conferred upon the Minister by section 75 of the Tax
Procedures Code Act, 2014, these Regulations are made this 2nd day of October,
2018.
PART I- PRELIMINARY
1. Title
These Regulations may be cited as the Tax Procedures Code (Tax Stamps)
Regulations, 2018.
2. Interpretation
In these Regulations, unless the context otherwise requires –
“Act” means the Tax Procedures Code Act, 2014;
“Authority” means the Uganda Revenue Authority established by section 2 of the
Uganda Revenue Authority Act;
“authorized officer” means an officer of the Authority authorised by the
Commissioner to perform any act or function under these Regulations;
“contractor” means a person appointed by the Commissioner to supply, install, and
maintain the system;
“importer” means a person who imports goods prescribed under section 19A of the
Act;
“manufacturer” means a person who manufactures goods prescribed under section
19A of the Act;
“package” means a packet, bottle, sachet, container or similar material used for
packing prescribed goods;

Lotteries & Gaming Act 2016
LOTTERIES AND GAMING ACT
An Act to reform the law relating to the conduct of lotteries, gaming, betting and
casinos; to establish the National Lotteries and Gaming Regulatory Board; to provide
for licensing and regulation of lotteries, gaming and betting; to provide for taxation
of casinos, gaming and betting activities; to repeal the National Lotteries Act, Cap.
191 and the Gaming and Pool Betting (Control and Taxation) Act, Cap. 292; and for
related matters.
Date of Assent: 28th
December, 2015
Date of Commencement: 8th
April, 2016
1. Interpretation.
PART II - NATIONAL LOTTERIES AND GAMING REGULATORY
BOARD
The National Lotteries and Gaming Regulatory Board
2. Establishment of the National Lotteries and Gaming Regulatory Board.
3. Objective of the Board.
4. Functions of the Board
5. Powers of the Board
6. Composition of the Board
7. Tenure of office of members of the Board
8. Meetings of the Board.
9. Remuneration of members of the Board.
Staff of the Board
10. Secretariat of the Board.
11. Chief Executive Officer
12. Functions of the Chief Executive officer
13. Tenure of office and remuneration of Chief Executive officer
14. Exemption from personal liability.

Tax Appeals Tribunals Act Cap.345
TAX APPEALS TRIBUNALS ACT
Cap.345, Laws of Uganda, 2000
An Act to establish tax appeals tribunals pursuant to article 152(3) of the
Constitution.
Commencement: 1 August, 1998.
PART I - INTERPRETATION
1. Interpretation
PART II - ESTABLISHMENT OF TAXATION APPEALS TRIBUNALS
2. Establishment of tribunals
3. Appointment of the chairperson of a tribunal
4. Appointment of the other members of a tribunal
5. Qualifications for appointment
6. Term of appointment
7. Conditions of appointment
8. Oath of office
9. Termination of appointment
10. Disclosure of interest
PART III - ORGANISATION OF THE TRIBUNALS
11. Official seal
12. Arrangement of business
13. Constitution of a tribunal for exercise of powers
PART IV - REVIEW BY THE TRIBUNALS OF TAXATION DECISIONS
14. Tribunal to review taxation decisions
15. Deposit of portion of tax pending determination of objection
16. Application for review of a taxation decision
17. Lodging of material documents with the tribunal
17A. Mediation
18. Burden of proof
19. Review by the tribunal
20. Hearings

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