1. 1
Food for Thought
THE ICAI
UGANDA KAMPALA
CHAPTER
Inside this issue
Chairman's message....................1
Secretary’s message....................2
Editorial board ............................3
Managing committee .................4
Articles ........................................5
News corner................................12
Woman’s corner..........................13
Gen next......................................15
Events..........................................16
Upcoming Events for you
• October Month—Study circle meet on the topic
of Transfer pricing, VAT on imported services,
Export of services by Mr. Anil Patel
• November Month – NRI Taxation, NRI schemes,
Money repatriation and Many other by Mr.
Dalal
(Read more on page no.15)
Chairman’s message
Dear Professional Colleagues,
I congratulate all the members and specially the editorial team, Mr.
Ashok Goyal and Mr. Gourang Shah for the Launch of our First E-
Newsletter.
I am sure very soon we will also print and circulate this Newsletter.
This month on September 27, 2014 we are organizing a Breakfast
Workshop to discuss and analyse the Finance Bill, 2014 of Uganda.
Thanks to Grant Thornton Team.
Through the efforts of Mr. Mohan Reddy we will also earn 2 hours of CPE form this Workshop.
In the month of November, we are hosting a consultant from India to speak and share with us
various important provisions of Taxation on NRI’s, Investment Opportunities for NRI, Repatria-
tion of Fund from India and various other benefits for NRI’s.
I have high hope of getting various benefits to NRI Community in Uganda.
Also every Month (w.e.f. October 2014) we will be hosting Workshops on IFRS which would also
earn CPE hours. Thanks to Mr. Murtaza Dalal, PKF.
We are in discussion with ICAI, Delhi to get 30/40 hard copies of our Monthly Journal, for on-
ward distribution to our members.
Our Chapter wishes to play an important role in Lobbying our business concerns to the Govern-
ment or its regulatory body. I have earlier requested our members to write to us all their major
business concerns and proposed solution. I again appeal to all members on this.
We look forward to receiving your suggestions and ideas.
Best Wishes.
CA Rajesh Chaplot
Chairman – The Institute of Chartered Accounts of India Uganda, Kampala Chapter
E-Newsletter
Volume 1, Issue 1
September Issue
Rajesh Chaplot
“Arise! Awake! and stop not until the goal is reached.
—Swami Vivekananda”
2. 2
Secretary’s Message
Dear Colleagues,
The ICAI–UG (Kampala) Chapter was
approved by the central council of the
Institute in its 329th meeting and inau-
gurate on 1st day of February 2014 by
then President of ICAI CA Subodh
Kumar Agarwal in the gracious pres-
ence of CA J. Venkateswarulu Central
Council Member, Mr. Lawrence Kizza
Director of economic affairs in the
ministry of Finance Uganda, Mr. Begu-
misa Protazio Vice President of Institute of Certified Public Accountants of
Uganda. Today, Uganda (Kampala) Chapter is one of the most active in east
Africa Chapters of The Institute of Chartered Accountants of India. The
Uganda (Kampala) Chapter inauguration photographs were published in the
April Journal of ICAI on page no. 12.
The painstaking contribution made by the current Chairman CA. Rajesh
Chaplot and all the members of the Managing Committee has resulted in
the enhanced status that the Chapter today enjoys in the society. I consider
it a great privilege and honour to be a part of this organization that has
been built on a strong foundation of intellectual heritage and trust.
The various technical, social and community development programs under-
taken by the Chapter from the date of its inception have been a great suc-
cess. The resurgence of the economy and business environment in the
UGANDA coupled with the recent government initiatives and regulations to
promote the all-round growth in the country is bound to pose new chal-
lenges to the profession.
Managing Committee had organised Quarterly Networking of Members on
4th April 2014 from 6:30 PM to 8:00 PM at Plot no. 13, Hill View Drive,
Bukoto. Meeting was attended by more than 25 members and during this
meeting we had elected/ selected the subcommittee members to assist the
Managing committee in organising various technical, social and community
programmes.
We have organised a Breakfast meeting on the eve of election results in
India on 16th Friday May 2014 from 6:00 AM to 9:00 AM. H.E. Sri Ramesh
Chadra, Indian High Commissioner to Uganda was Present on the day
Our Chapter organised a family picnic in commemoration of 65th year of
Chartered Accountants day at Kakira Sugars Factory, Jinja on 20th July 2014.
Picnic was attended by around 25 members from Kampala and Jinja. I
thank all the members who attended the picnic and my special thanks to
Mr. Ashok Goyal for organising games to cross section of the members.
I take this opportunity to thank the management of M/s Kakira Sugars par-
ticularly Mr. Reddy who had organised a wonderful facilities and factory
tour for our members and their families. As a whole it was a wonderful
opportunity for the members and their families to know each other and to
develop the bond among them. It was indeed a great and fun filled day.
The Chapter will therefore continue to organize high quality professional
development programs that will prepare all our members to face these
challenges and to make a positive contribution to the society and growth of
the country. The responsibility to contribute to the community is well rec-
ognized by the members and the Chapter will continue to organize and
expand its Corporate Social Responsibility programs.
I am very happy to inform all the members that our Chapter has been regis-
tered in Uganda by virtue of having registered the documents with Uganda
Registration Services Bureau (URSB). However, in order for it to become a
legal entity we lodged the documents with Ministry of Lands for it to be
registered as a trust which is under process. I should not forget to thank
Mr. Allan Kakungulu, Legal Officer at Compliance Business Services Ltd for
his time and effort in getting the chapter registered.
I would also like to inform the members that we are in constant touch with
the CEO of Institute of Certified Public Accountants of Uganda to register
our member as the members of the CPA Uganda. If not possible at least as
non practicing member of the Institute without writing the exams. The CEO
has communicated to us in his letter dated 4th April that the matter was
forwarded to the concerned committee for necessary action. We are very
positive about the outcome. We will inform all the members once we re-
ceive the communication from CPA Institute.
We also please to inform the members that we had developed the website
(http://www.icaiug.org) for our Chapter. Request the members to visit the
website for latest news and events organised by our chapter. And also re-
quest the members to register through online form. The membership form
is designed to have all the import information pertaining to the member of
the Chapter. (http://www.icaiug.org/memindex.html). I thank Mrs. Roja
Ramani for designing the website.
Our chapter also have a face book account (https://www.facebook.com/
UGANDAICAI). I request all the member to visit our facebook also for all
latest updates.
I congratulate and thank all the members and specially the editorial team,
Mr. Ashok Goyal and Mr. Gourang Shah for the Launch of our First E-
Newsletter.
Although the affairs of the Chapter are managed by a committee of SIX
members, and supported by four subcommittees, the ideas, thoughts and
opinions of all the stakeholders are extremely important for the committee.
I therefore request you to be in touch with us and I am certain that your
suggestions will help us to serve you better.
With Best Wishes
CA Mohan Reddy Yadla
Secretary
Uganda (Kampala) Chapter of ICAI
Email: secretary@icaiug.org
Mohan Reddy
3. 3
Dear Professional Colleagues,
On behalf of the ICAI – Uganda (Kampala) Chapter the editorial Board presents to you the first edition of ICAIU Newsletter. The editorial
board is thankful for overwhelming response of the members who have contributed articles of professional interest as well as all other
useful information. I am sure that this enthusiasm shall continue in the future also and in the coming times the humble beginning of ICAIU
will achieve greater heights at the Central level.
As someone rightly said- "No one can whistle a symphony. It takes a whole orchestra to play it". – The saying holds very true in our case as
once again our members joined hands in providing high quality submissions and invaluable contributions to this first edition of this news-
letter. We thank all of them for their contributions and would encourage other fellow members to participate in future.
I am great full to Editorial Board, Management Committee and to my Associate Editor Mr. Gourang Shah for all the help extended to me in the execution of Editorial re-
sponsibilities to launch this first newsletter of ICAI.
One piece of log creates a small fire, adequate to warm you up, add just a few more pieces to blast an immense bonfire, large enough to warm up your entire circle of
friends; needless to say that individuality counts but team work dynamites.
Hence we request all the fellow members to contribute in the newsletter. Following are the various sections:
ARTICLE / DISCUSSION FORUM / WOMAN’S CORNER / GEN-NEXT / HEALTH TIPS / LIGHT MOMENTS / FUNNY FACTS / SOME USEFUL INFO / NICE QUOTES
It is really our dream to make this esteemed Association of ours the most distinguished body of the professionals in Uganda. However to achieve this dream, one and all
of us has to sincerely contribute towards its growth.
Please reach us at : editor@icaiug.org
We look forward to your critical reviews, suggestions and positive contributions on the Chapter activities and also on the content of this newsletter.
Enjoy reading !!!
With warm regards,
On behalf of the Library & Media Committee of ICAIU
Ashok Goyal
Chief Editor and Chairman of the Sub Committee
“Library & Media Committee of ICAIU”
E-mail: ashok.goyal.barmer@gmail.com
Dear Readers,
The ICAI–UG (Kampala) Chapter feels proud to publish the first newsletter.
We are happy that though it was a short notice given to all the members to contribute articles, we received a hopeful response and
those have been published in this newsletter. We hope this will be positive and encouraging going ahead.
We are approaching near October 2, the day celebrated as Mahatma Gandhi’s day. Let’s shape ourselves in his path of wisdom and
let’s contribute positively to our profession and our institute. The contribution also extends to our society at large and we should cele-
brate the public day by reaching out to more wider public. Gandhiji, had spent his initial years in Africa and had developed the nation
through his immense contribution; same has to be followed by all of our esteemed members of the institute.
We wish all the readers to find this newsletter more encouraging and we shall expect more participation in our forthcoming issues and publications. We wish to prosper
and conquer this area of knowledge sharing through medium of “You”.
May god bless everyone and let’s celebrate more events that will be taking place within the institute. We would like to hear from you about this newsletter: “Share your
feedback”.
CA Gourang Shah
Editor
Uganda (Kampala) Chapter of ICAI
Email: gourangshah24@gmail.com
Gourang Shah
Ashok Goyal
Editorial Board
5. 5
Sub committee for ICAI-2014-2015
CPE / Seminar / Study Circle Committee Name
Chairman CA Mahesh Karki
Convener CA Murtuza Dalal
Committee Member CA Himmat Patel
Committee Member CA Shakil Shafi
Committee Member CA Manjit Kothari
Committee Member CA Nilesh Patel
Mobile
712220074
772200094
783469046
772744282
712699906
718209220
E-mail
mahesh@graphicsystems-ea.com
mdalal@ug.pkfea.com
ca.himmat@gmail.com
shakil.Shafi@mukwano.com
manjit.kothari@hemug.net
nilesh.patel@ug.gt.com
Sports & Cultural Committee Name Mobile E-mail
Chairman CA Mohan Reddy 712569369 mohan@tirumala.co.ug
Convener CA Rishitosh Kabra 776004083 kabra.rishitosh@movit.co.ug
Committee Member CA S. Srikant 712233796 ssrikant@hotmail.com
Committee Member CA Adinalayana Balcha 715947050 accounts@gml.co.ug
Committee Member CA Dilip Mali 753541556 dilip.mali@ug.gt.com
Advocacy committee Name Mobile E-mail
Chairman CA Rajesh Chaplot 772220074 rajeshchaplot@graphicsystems-ea.com
Convener CA Dilip Bandari 772721086 Dilip.Bhandari@spedaginterfreight.com
Library & Media Committee Name Mobile E-mail
Chairman CA Ashok Goyal 776777676 ashok.goyal@gapcogroup.com
Convener CA Gourang Shah 750333098 gourang.shah@ug.gt.com
Committee Member CA Hirak Bhansali 794705070 hirak.bhansali@gmail.com
Committee Member CA Paresh Shah 717631208 paresh.s@mukwano.com
6. 6
What is Tax?
It is a compulsory and non-refundable contribution, charge or levy insti-
tuted by law and executed by government for public purposes.
Who is a Taxable Person?
The term person is defined to include an individual, a partnership, a
trust, company, a retirement fund, a government, a political subdivision
of government, and a listed institution. These can be residents or non-
residents that have derived any taxable income from Uganda.
What is Taxable Income?
Taxable income is gross (Business, Property, and Employment) income
less exempt income and allowable deductions. The gross income of a
resident person includes income derived from all geographical sources
whereas for a non-resident person it comprises of only income derived
from sources in Uganda
Allowable deductions include expenditure and losses to the extent to
which they are incurred in the production of income included in gross
income, and capital allowances such as initial allowance, depreciation
allowances, industrial buildings allowances computed at rates specified
in the Income Tax Act.
TAX Rates
Annual Tax Rates for Resident Individuals
• The annual income tax threshold for resident individuals is now
UShs. 2,820,000 (up from Ushs 1,560,000 to June 2012).
• Employment income tax is paid through the Pay-As-You-Earn
(PAYE) system.
• Tax is withheld by the employer monthly and remitted to the tax
authorities by the 15th of the following month.
Annual Income Tax Rates for Non-residents
Taxable Income Per annum
Ushs
Rate
%
0 - 2,820,000 0
2,820,001 - 4,020,000 10
4,020,001 - 4,920,000 20(+)
4,920,000 – 120,000,000 30 (+)
Over 120,000,000 40(+)
Taxable Income Per annum
Ushs
Rate
%
0 - 4,020,000 10
4,020,001 - 4,920,000 20
4,920,001- 120,000,000 30
Over 120,000,000 40(+)
• Non-residents with no permanent establishment in Uganda pay tax at
the specific withholding tax rates.
Corporation Tax Rates
Net Operating Tax Losses
Years
Carry back 0
Carry forward unlimited
Payment of Corporation Tax by Companies
Companies are required to pay their tax in two equal installments within the
financial year by the end of the 6th and 12th month.
The annual self-assessment return is due for submission by the end of the
6th
month after the financial year end and all the unpaid taxes are due on
that date.
Penalties of 20% are imposed if the final tax liability for the year exceeds the
tax liability shown in the provisional return by more than 10%.
Failure to submit a final return by the due date attracts penalty of Ushs
200,000 per month or 2% of tax assessed whichever is higher.
Foreign Tax Relief
A foreign tax credit is granted for foreign tax paid on foreign source income
taxable in Uganda. The credit is limited to the Ugandan tax on such income.
CAPITAL ALLOWANCES–ALL TAX PAYERS
Wear & Tear allowances are granted on reducing balance method except on
Commercial, Industrial buildings and farm works which is on straight line
basis.
Corporate Tax Rates Rate %
Resident and Non Resident Companies 30
Branch Tax 30
Branch profit remittance tax 15
Capital gains tax 30
Mining companies 25 - 45
Wear & Tear
Commercial Buildings **5%
Industrial Buildings 5%
Computers & Data handling Equipment 40%
Vehicles with sitting capacity of less than 30,
and load capacity less than 7 tonnes.
35%
Motor vehicles with
sitting capacity of 30 or
more, and load capacity of 7 tonnes or more.
30%
Plant & Machinery used in farming, manufac-
turing or mining
30%
Railroad cars, locomotives and water transporta-
tion equipment, aircrafts
20%
Furniture, fixtures 20%
Other Plant & Machinery 20%
Farm works 20%
Articles by Members
7. 7
* Depends on the geographical location
** Where construction was started on or after 1 July 2000 and 1st July
1997 in case of approved hotels and approved hospitals.
Other Capital Allowances
Intangible assets Cost/useful life
Start-up costs 25%
Start-up costs and intangible asset allowances are on straight line basis.
WITHHOLDING TAX RATES
Important Notes
Note 1: * Applies to all resident professionals except those who are ex-
empted from WHT or provide written clearance from Uganda Revenue
Authority.
Note 2: ** The tax so withheld is a final tax if it arose from;
A payment of interest
By Bank of Uganda to any person on Treasury bills or other Government
securities;
By a financial institution to a resident individual (other than a trustee),
resident retirement fund, or to an exempt organization;
A payment of dividends to a resident individual.
Note 3: *** Following July 2012 amendment, the rate for resident indi-
viduals was increased from 15% to 20%.
Note 4: WHT is not applicable to an amount attributable to the activities
of a branch of a non-resident.
WHT on Investment Income
WHT on payment of interest to resident persons does not apply to interest
paid;
• By a natural person;
• To a financial institution (except interest from Government securities);
• By a company to an associated company (≥ 50% of voting power);
• But is exempt from tax in the hands of the recipient.
Income distributed to holders of Unit Trusts and other Collective Invest-
ment Schemes is exempt from withholding tax.
Interest Income earned by Financial Institutions on loans granted to persons
engaged in Agriculture is exempt from Income Tax.
TRANSFER PRICING (TP) POLICIES
Business entities in Uganda which have dealings (to the tune of UShs. 500m
or above) with both resident and non-resident related entities may be tar-
geted by the Uganda Revenue Authority (URA) in a campaign to curtail
revenue loss in relation to businesses involved in cross-border transactions.
The Income Tax (Transfer Pricing- TP) Regulations, 2011 ought to be applied
by related enterprises in determining the arm’s length price of goods and
services in transactions involving them.
Under the TP rules, such companies or groups are now required to prepare
and put in place transfer pricing documentation in accordance with these
rules by the next filing of the company’s annual return.
Payment of Withholding Tax
Withholding taxes are required to be paid by the 15th day of the month fol-
lowing the month of deduction.
INDUSTRIAL ZONES
Industrial zones have been set up for the production of exports with the
following incentives:-
a. A ten year tax holiday for air craft business, exportation of finished
consumer and capital goods.
b. Duty exemption on raw materials, plant and machinery and other in-
puts
c. Stamp duty exemption
d. Duty drawback to apply on import of goods from domestic tariff area.
e. No export tax on goods exported.
f. Exemption of withholding tax on interest on external loans.
g. Dividends repatriated to get relief from double taxation.
Note: The above applies to those who apply in writing to the Commissioner
and have been granted the certificate of exemption.
NEW INCENTIVES/EXEMPTIONS
With effect from 1st July 2009, the following new incentives/exemptions have
been granted:
Residents
%
Non-Residents
%
Dividends **15% 15%
Dividend from listed
companies
**10% 15%
Interest **15% 15%
Interest on T. Bills &
Bonds
*** 20% 15%
Royalties - 15%
Management fees - 15%
Sporting or
Entertainment income
- 15%
Natural resource payment - 15%
Lease of equipment - 15%
Payment by Government
Entities
6% -
Professional fees *6% *15%
Imports of final
consumer goods
6% 6%
Shipping, air transport, or
road transport
*2%
Business of transmitting
messages
5%
8. 8
1. The incentives granted to new agro-processing investments have
been modified to exempt income of a person derived from agro-
processing where the person--
A. applies in writing to the Commissioner to be issued with a certifi-
cate of exemption at the beginning of his or her investment;
B. invests in new plant and machinery to process agricultural products
for final consumption;
C. processes agricultural products grown or produced in Uganda;
D. undertakes to fulfill regularly all obligations under this Act relating
to his or her investment;
E. has been issued with a certificate of exemption by the Commis-
sioner.
“Agro processing” in relation to agricultural products of pastoral, agri-
cultural, or other farming operations, means an industrial or manufactur-
ing process that substantially transforms or converts raw agricultural
produce in order to convert the produce into a different chemical or
physical states and includes the activities that take place between
slaughter or harvest of the raw product in order to change it or preserve
it.
NSSF CONTRIBUTIONS
The combined employer and employee contribution by a member to the
NSSF is 15% of the total employee cash emoluments. The 5% employee
contribution is not tax deductible on the employee while the employer’s
10% contribution is tax deductible against the employer’s income.
Amounts commuted from a registered pension fund, including the Na-
tional Social Security Fund (NSSF), are tax exempt. Similarly, amounts
commuted from a registered provident fund are tax exempt. There is no
limit on the amount that can be withdrawn.
VALUE ADDED TAX
Value Added Tax (VAT) is chargeable on the supply of goods/services in
Uganda and on the importation of goods/services into Uganda. There are
exceptions to the tax, which are dealt with either by zero-rating or ex-
emption.
Taxable Persons
A business entity is required to register for VAT if it has supplied or
expects to supply taxable goods or services up to the value of Ushs 50
million in a year or if the gross income for three consecutive calendar
months exceeds Shs. 12.5 million.
The categories of supplies for VAT are standard rated, zero (Schedule
III) and exempt (Schedule II) supplies.
What is VAT?
Tax Base
The taxable value of supply is the price for which the supply is provided.
The taxable value for a supply that is not arm’s length is the price at
which the goods would have been sold in the ordinary course of busi-
ness.
Tax Rates
The standard rate is 18%. However, VAT on sale of residential properties for
the period July 2008-June 2009 was at 5%. Effective 1st July 2009, the sale of
residential properties is exempted from VAT.
Input Tax
A taxable person is allowed to deduct input tax incurred on purchase of
goods and services used in making taxable supplies from the output tax
charged. Any excess output tax is payable to the Commissioner of Domestic
Taxes while excess input tax is refunded.
Mixed Supplies
Where a registered person provides both taxable and exempt supplies, the
input tax is apportioned. Tax on certain inputs is non-deductible. This in-
cludes tax on expenditure on all vehicles other than commercial vehicles and
entertainment unless the taxable person is involved in the business of car
hire (car rentals) or entertainment respectively.
VAT on Imported Services
Where a ‘vatable’ service (taxable at 18%) is received from outside Uganda
by a person or business which is in Uganda, VAT must be accounted for by
the recipient at the time of making payment (for that service) to the non-
resident. This is called VAT on Imported Services (also called ‘Reverse VAT’
in some other Tax Jurisdictions).
The VAT on Imported Services mechanism transfers the liability to account
for, and pay VAT on imported services from the non-resident person who is
making the supply, or providing the service (the supplier), to the resident
person who is receiving the service.
Effective 01st July 2011 claim of VAT on imported services was 'revoked'. As
such it becomes a cost.
VAT Representatives of Non-resident Persons
A non-resident person may be required to apply for registration for VAT
purposes. Where such a person does not have a fixed place of business in
Uganda, they shall appoint a VAT representative in Uganda. Alternatively,
the Commissioner General may appoint a VAT representative for the non-
resident person.
The requirements, rights and obligations of a VAT representative of a non-
resident person are defined in the VAT Act.
The meaning of ‘non-resident person’ in this case is in accordance with the
interpretation given by the Income Tax Law.
VAT Refund Claims
A person claims, returns, submits or declares a wrong, false or incorrect off-
set claim for any tax period is liable to a penal tax of 100% of the difference
between the correct amount and the wrong offset.
9. 9
Payment of VAT
VAT is payable to Uganda Revenue Authority and is due by the 15th day
of the month following the month of supply. Tax on imported goods is
payable at the customs clearing point.
Record-Keeping for VAT
A registered person must keep records of all supplies made and received
for a period of 6 years. The person is also required to furnish the pur-
chaser with a tax invoice at the time of supply.
OTHER TAXES
Customs duties are charged on imported goods. Customs duty rates vary
from 0% to 25%.
Excise Duty
Excise duties are charged on designated imported and local goods and
services.
Customs Duty
Stamp Duty
Stamp duty is charged at varying rates on various legal documents/
agreements e.g. transfer of shares, issue of shares.
Gambling Tax
The Gaming and Pool Betting (Control & Taxation) Act, Cap 292 pre-
scribes a tax of 20% (an increase from 15% to 30th June 2012) on the gross
receipts which is however interpreted by Uganda Revenue Authority as a
WHT when computing annual income tax.
Levies and fees
Effective 1st July 2009 environmental levies have been imposed on im-
portation of used items as follows;
Levies & Fees Imposed
Some fees are charged in various areas including road fund, environ-
mental levy on used locomotives and spares, registration fees, visa fees
and work permits.
Tax Rates
The standard rate is 18%. However, VAT on sale of residential properties for
the period July 2008-June 2009 was at 5%. Effective 1st July 2009, the sale of
residential properties is exempted from VAT.
DOUBLE TAXATION AGREEMENTS (DTAs)
◊ Uganda has DTAs with United Kingdom, Denmark, Norway and South
Africa, Italy, Mauritius and India.
◊ DTA with Belgium has been signed and is awaiting ratification by Par-
liament
◊ DTAs with the following countries are yet to be signed; Egypt, China,
UAE, Sudan, Seychelles, Netherlands,
◊ The East African Community Tax Agreement with Tanzania, Kenya,
Burundi & Rwanda is awaiting enforcement.
Local Service Tax (LST) and Local Hotel Tax (LHT)
♦ Effective 01st July 2008 LST is levied on all individuals in gainful em-
ployment and collected by all Local Governments.
♦ Similarly, effective 01st July 2008 Hotels/lodges to collect Local Hotel
Tax (LHT) from occupants and remit to Local Governments where lo-
cated.
♦ Five and four staff hotels – US$ 2 per room per day or its equivalent in
Uganda Shillings.
♦ Other hotels/lodges have several tax bands prescribed for them
Disclaimer:
This information is prepared for guidance only and is not a substitute for
professional advice. Whilst every care has been taken to ensure accuracy of
information contained herein, the author, ICAI Uganda Chapter and the
publishers cannot accept responsibility for any action taken without appro-
priate professional advice.
Article written by:
Article by:
FCA/CPA MURTUZAALI DALAL
PARTNER, PKF UGANDA
MEMBER: ICAI UGANDA CHAPTER
Used Item Rate or %
Motor vehicles more than 8 years old 20% of CIF
value
Cookers, radios & household appliances Shs. 50,000
Motorcycles, scooters, mopeds, bicycles
& (used) spare parts of motor vehicles
20%
Worn clothing, worn shoes and other
worn articles
10% of CIF
value
10. 10
Impact of VAT on Feeds for Poultry
and livestock on farmers: -
Normally the small farmers opt for poultry , diary, pig farming to gen-
erate additional income and support their families. Even at present the
rate of success in this sector is very little mainly due to the fact that
factory made feeds are more expensive than the home mixed feeds
and that makes them to choose the home mixed feeds. These home
mixed feeds are highly inefficient due to their sub standard quality.
People who are mixing these feeds are not technically trained to know
the nutritional requirement of the animal or the birds. In our studies of
the field we have invariably found that the farmer lost their business
because of non performance or under performance of their live stocks.
Sub standard feeds are the main reason for this collapse. Now with
VAT factory made feeds would become more expensive and this would
deter the farmers from buying the quality feeds. These farmers nor-
mally are not organized and sell their products in informal markets so
they would not be able to claim the VAT input and ultimately whole
VAT on purchase would become cost for their farm output. This cost
would certainly make the produce of the farm expensive and given the
state of purchasing power of the country, it would become unafford-
able to public. This may lead public to avoid this type of product which
may ultimately kill these small farms.
Impact of VAT on Feeds for Poultry
and livestock on Feed Industries: -
There are very few good feeds factories in the country and even these
are not being run on as a profitable venture. The organized feed indus-
try faces immense competition from the local feed which are manufac-
tured in every nook and corner of the country. These feeds are nor-
mally cheaper than the factory produced feeds because of their sub
standard quality. Since these local feed mixers are not in organized
sector they would not be caught under tax net and can easily evade
tax and also increase the margin. In our opinion, the feed industry,
which is already ailing can really collapse completely. This will cause
big direct and indirect employment loss along with detrimental effect
on farmers who sell their produce to factories. Any way collapse of any
kind of industry in any country is not good for the economy.
Impact of VAT on Diary industry: -
Diary industry is one of the biggest hopes for Uganda’s economic
prosperity along with the Oil industry. This is the time when farmers
and investors both were looking at this industry as big time opportuni-
ties. By subjecting the diary machineries and milk products to VAT, this
budget has dampened the mood of farmers and investors. This sector
would not be seen as some opportunity where the government would
help it. VAT imposition on these items would increase the cost of in-
vestment and cost of the milk products. This industry is still in a nas-
cent stage and public is about to include in their nutritious food menu.
Now the increase cost would convert it in luxury, not for everyone.
Under these circumstances, in absence of local market no industry can
survive. Further our neighbor Kenya which has very high capacity of
milk processing in comparison of ours can push their product in our
market through smuggling which our system has never been able to
stop. This would result into revenue loss to the government and at the
same time business loss to the industry.
General opinion: -
Everywhere in the world farmers and agriculture related industry is
protected by the government for it is understood that farmers are very
important contributor to the country’s GDP. Almost all the developing
countries are doing everything to protect them and nurture them. It
would be very much in the interest of the country if government could
withdraw mentioned VAT budget proposals and find other alternative
way of raising the revenue.
Article by:-
Ashok Mishra
VAT on milk product and feeds for poultry and livestock is highly detri-
mental to the interest of farmers and industries in Uganda
11. 11
As companies strive to bolster competitive advantage in a com-
plex global environment, savvy business leaders are leveraging
technology to accomplish their goals. Over few years, growing
companies have invested in various technologies to streamline
their business like Enterprise Resource Planning (ERP), SCM
(Supply Chain Management), Business Intelligence (BI) etc.
While ERP solutions and enterprise business applications inte-
grate information from legacy systems and specialized best-of-
breed software, most enterprise solutions do not provide a
simple dashboard, or analytical approach to information pres-
entation. Standard reports provided by business applications do
not satisfy the need for on-the-fly, end-user reports that enable
the kind of sophisticated decision-making and monitoring
power a business needs.
A tool like Business Intelligence can help business centralize
their data provides better access, helps business concentrate
on key business metrics and identify the root cause.
There are numerous market micro-segments in the small and
medium size business community, and in many of these seg-
ments business intelligence tools are still a new concept that
has yet to be adopted. Yet, these tools are just as critical to
small and medium sized businesses as they are to large compa-
nies.
A typical enterprise will require graphical reporting and presen-
tation, data integration, filtering, sorting, ranking, drill through
capabilities, forecasting and predictive analysis, balanced score-
card and KPI features, custom alerts, publishing and sharing of
meaningful data and personalized dashboards. These tools can
be deployed throughout the enterprise to cascade strategy and
goals, improve productivity and enforce accountability.
Flexible, affordable, adaptable tools and features make it easier
to employ a self-service approach to business intelligence. The
enterprise can quickly acquire, implement, train and deploy BI
across the company, and thereby achieve optimal business per-
formance and improved revenue.
Good business intelligence must integrate data from every
available data source in the company, and present that data in
a way that is meaningful to every user - in other words, it must
be personalized to the role and function of the users. BI solu-
tions must provide high-performance, mobile tools and fea-
tures like deep dive analysis, cross-tab OLAP and graphical
OLAP, key performance indicators (KPIs), forecasting and pre-
dictive analysis and more.
Business Intelligence tools are now redefined to meet the ex-
panding needs and aspirations. For an instance, ad hoc analysis
like Profit and Loss analysis with drill down to daily transactions
can be made with single drag and drop. Sales Analysis by region
with drill down on region and period with benchmarking
through spot lighters can be done to highlight exception values.
Ratio analysis using key performance indicators (KPIs) an or-
ganization can compare annual reports of their competitors on
certain KPI and ratios, which are intrinsic to their industry. This
helps them track their performance, vis-a-vis their competitors.
Such advanced business intelligence tools enables slice and
dice, drill through, drill up, benchmarking and virtually makes
data speak to you and answer critical business question.
A Chartered Accountant or an auditor can act as an ambassador
of change in any organization and provide cutting edge consult-
ing drawing on aspects like Financial Accounting, Corporate
Finance perspectives, Governance, Risk and Compliance in
Banking, Insurance, Capital Market etc. They can identify excep-
tions, variations and demarcation from pattern with ad hoc
analysis and exception alerts and highlighting to identify varia-
tions, gaps and exceptions for diverse domains.
Tools like ElegantJ BI provide a self-serve environment to im-
prove competitive advantage and make positive changes in the
business with clear, concise data and integrated information
from disparate systems and sources. There is no need to spend
millions of dollars or months or years implementing a cumber-
some, unwieldy business intelligence solution. The once daunt-
ing obstacles of cost, usability, and implementation time and
user adoption no longer apply. If your enterprise is on the fence
about business intelligence, or is looking to improve BI accessi-
bility and open the borders of information access to every user,
this is the time to seriously consider the new business intelli-
gence solution environment. Improve competitive response
and the quality and speed of decisions. Get your users involved
and encourage accountability and empowerment. There is no
reason to wait!
Article by:-
Mr. Paresh Shah
Business Intelligence for Chartered Accountants
Leverage Business Intelligence and become an Ambassador for Change
12. 12
News from India
International Taxation
India urges all nations to join tax information pact
Delhi : Welcoming the G20 pact on exchange of information to curb tax evasion, India on Monday urged all nations to join the pact
but expressed reservations about the mandatory arbitration in the Mutual Agreement Procedure (MAP) of tax treaties saying it not
only "impinges" on the sovereign rights of developing countries in taxation but also limits the ability of developing countries to ap-
ply their domestic laws for taxing non-residents and foreign companies.
SERVICE TAX
Service taxes set to get a big infrastructure bump
Delhi : The service tax net will be cast wider soon to include a wide range of construction-related services, which are currently ex-
empt as “infrastructure services” and form more than a third of the country’s Rs 4.5-lakh-crore construction sector.A 12% levy on
services such as construction and upkeep of highways, bridges, airports, metro rail networks, post-harvest storage infrastructure,
mechanised food grain handling systems and possibly even low-cost housing projects would add to the cost of these services, ex-
perts said.
RBI
Street expects RBI to hold rate for entire year
Maharashtra : The current financial year might end up being the first in seven years to see the Reserve Bank of India (RBI) keep-
ing the benchmark repo rate unchanged, indicates a Business Standard poll among 15 financial experts, days before the central
bank’s review of its monetary policy.As many as nine respondents — all leading names in the public sector, private and foreign
banks, as well as other financial intermediaries — said RBI would hold the repo rate at eight per cent at least until the end of March
2015.
FDI Policy
Red Carpet for FDI in Construction
Delhi : The Narendra Modi government is set to substantially ease norms for foreign investment in the construction sector, hoping
to drum up interest in the prime minister’s plans for 100 smart cities as well his affordable housing initiative. The government is
seriously considering the removal of all restrictions on size and minimum capitalisation for the smart cities as well as affordable
housing projects. “The discussions are on for exempting smart cities from all FDI conditionalities. We need to give them a push by
making it attractive for investors,” said a government official. The new policy is also expected to provide easier exit windows.
Misc. Corporate Laws & Other Commercial Policies
Govt considers price control on medical devices
Delhi : Lack of transparency in the health care sector could invite stricter norms and regulation. The government might cap the
maximum retail price of medical devices, mainly the ones meant for hospital usage such as stents, catheters and implants, sources
said.The health ministry and Department of Pharmaceuticals are working on a proposal to bring price regulation of medical devices
under the National Pharmaceutical Pricing Authority, which monitors the prices of medicines.
Finance & Money Markets
Government mulls another ETF comprising stocks of L&T, ITC and Axis Bank and some blue chip PSUs
Delhi : Buoyed by the success of its exchange-traded fund comprising stocks of state-owned companies, the government is now
looking to launch another such exercise to take advantage of the ownership of blue chips such as ITC and Larsen & Toubro through
the Specified Undertaking of Unit Trust of India (SUUTI), besides some other key public sector stocks. "We are looking at another
ETF with L&T, ITC and Axis Bank and some blue chip public sector companies," said finance secretary Arvind Mayaram.
13. 13
Women’s corner
Great Women Power!!!
“ They say it is a man’s world,
What a myth unfurled!
It is a woman who gives life,
She is a daughter and a wife!
She is a mother and a friend,
A survivor to the end!
A most dignified being,
Who teaches the art of living!
She is no more a house mat,
And can put on a multiple hat!
An engineer, doctor and accountant,
Still retaining the master chef patent!
Gods most precious creation,
Radiates love and illumination!
It is no longer a man’s world,
It’s a Woman's World!”
Article by:-
Darshana Bhatia
Heart of a Women in
Business !!!
A woman in business is like no other
Multi-brilliant at work, and a great mother.
Ready to go, whenever the need
She knows in her heart, there’s a calling to feed.
To do right, to speak up, determined to succeed
A role model that plants the possibility seed.
Knows who she is, right down to the core
Her essence, her passion—shine all the more!
She’s in charge with a handle on it all.
At the office, at home, or at the mall.
So energetic, creative and fun…
Early rise, there’s much to be done!
She still finds time to laugh and to play
Sacred time too, to kneel and to pray
Her daily prayer resides in God’s grace
Serving others from her heart sets the pace
Making use of her talent, wisdom and skill
From strengths and trust in Divine will.
Gentle, compassionate, loving and strong
In this sisterhood of success you want to belong
The road to get here has been quite a ride
“Call me ‘Woman’– it’s my source of pride!”
Come along, she’s blazing new trail
A woman in business—whom we all hail!
Article by: -
Mrs. Shefali Shah
(Masters in Pharmacy)
14. 14
Women’s corner
Lesson from Life for Happy Living: DOOR TO DIVISION
We come from a turbulent past
To an info-age moving way to fast
The fate of these lands
Is now placed in our hands
Will we bring destruction to an end
Will we have the power to mend
Save this fragile dreamland
Wash away our footprints in the sand
Global warming is causing weather changes right before our eyes
But we still blacken our skies
Sunrays take less time to burn our faces
But we still destroy our rain forests and just leave empty spaces
The men spill out of the factories everywhere
Punching their time clocks basically unaware
Don’t realize what's happening to the big picture
The massive devastation of the atmospheric mixture
Every day go through their daily motions
Waiting it out for measly promotions
Distant stares and silent prayers
Monday to Friday . . . say goodbye
Our oceans are slicked with oil spills
Our waterways full of toxic waste that kills
We build our cities on mountains of pollution
Without an environmental solution
We live our lives in search of wealth
In the process damage our good health
Crime stories are found on every newspaper page
People loosing control in an uncertain age
The victims of greed are getting younger
In a world that still allows their hunger
Our petty problems make us hang down our heads
While million's go unfed
Desire unfolds the light of our day
But we cannot give in to the subtle decay
We must rise above the haze descending
Toward mass action mending
We must take control of our actions today
or the children of tomorrow will be the one's to pay
The new innkeepers shall soon take charge
of the next generation’s voyage at large
Trends are patterned and patterns trended
But man's damage must be ended!
Article by:-
Anju Goyal
15. 15
Itinerary for ICAI Uganda (Kampala) Chapter (September 14 to November 14)
SR. No Item Responsible person Target date
1 Speaker
• NRI Taxation
• NRI schemes
• Money repatriation
• Many other
Rajesh Chaplot November 2014
2 India Vision - Article of Mr. Dalal Rajesh Chaplot October 2014
3 India Vision - Article of Mr. Dalal Mr. Dalal / Rajesh Chaplot November 2014
4 Study circle
• Transfer pricing
• VAT on imported service
Mahesh Karki / Anil Patel October 2014
5 CPE hours - IFRS Mr. Dalal October 2014
6 CPE hours - IFRS Mr. Dalal November 2014
7 Discussion on finance bill Uganda Mr. Anil Patel / Mr. Ashok Goyal 27/09/2014
Congratulation Master Yadla
Lohit Reddy s/o Sh. Mohan
Reddy for winning the sec-
ond price in drawing compe-
tition for children below 7
years while a great grand
social program of 15oth Birth
Anniversary of Swami
Vivekanand organised by HSS
and HSC, Uganda.
GEN NEXTWe are always proud of our
upcoming generation. They are
the future and they are the lead-
ers of tomorrow.
We encourage our members to
share their children’s achieve-
ments, awards, their recognition.
In this edition, we wish to con-
gratulate:
⇒ Master Yadla Lohit Reddy
⇒ Mr. Parth shah
Congratulations to Mr. Parth shah on completing his Char-
tered Accountancy course from the Institute of Chartered
Accountants of India (equivalent to the ACCA UK degree).
He also completed Bachelors of Commerce from H L Insti-
tute of Commerce from Ahmedabad University. He is cur-
rently pursuing CFA course.
16. 16
Photograph’s of ICAI Chapter Launch
Chapter launch– 1st feb 2014 Chapter launch– 1st feb 2014
Chapter launch– 1st feb 2014
Chapter launch– 1st feb 2014
Chapter launch– 1st feb 2014
Chapter launch– 1st feb 2014
17. 17
Photograph’s of ICAI Uganda– India election result party 16th may
Awaiting results Final picture of the winning party
Celebrations of the history created Members with Indian High Commission, Uganda
Post results discussion Dignitaries & their participation
19. 19
Photograph’s of ICAI Uganda– First picnic
Couple game Winner-Couple game
Tour-Madhvani sugar industry
Tour- Lubira hill
Tour-Madhvani sugar industry
Winner of shier bazar game
Winner- Balloon gameBalloon game
20. 20
ICAI Uganda Publication
E–Newsletter (For private use only)
Registered office:
Uganda (Kampala) Chapter of ICAI
Plot no. 10/12, Nakasero Lane,
P.O.Box 21138,
Kampala, Uganda
Phone: +256 414 340087
Fax: +256-414 340088
E-mail: secretary@icaiug.org or
icaug@icaiug.org
Editorial Board
Chief Editor: Mr. Ashok Goyal
Editor: Mr. Gourang Shah
Printed by: Graphic Systems
