1. The document summarizes proposed changes to Uganda's tax legislation for the 2011/12 year, as outlined in several new bills and regulations. Key changes include expanding the VAT base, clarifying the tax treatment of services and digital/online transactions, and modifying some income tax exemptions.
2. Specific amendments analyzed include expanding the definitions of "royalty" and taxable services; introducing rules for taxing imported services and digital/online transactions; removing an investment trader VAT facility; and clarifying tax treatment of employee stock options.
3. The overall aim of the changes is to broaden the tax base and increase revenue collections, though some provisions may increase costs for businesses or be difficult to implement in
The document provides an overview of key aspects of the Integrated Goods and Services Tax (IGST) Act in India. It notes that IGST is levied on all inter-state supplies of goods and services at a rate not exceeding 40%. Zero-rated supplies that allow for input tax credit include exports and supplies to special economic zones. Advance rulings under the IGST Act provide binding guidance on issues like classification and taxability. Refund provisions exist for taxes wrongly paid and for goods purchased in India by international tourists.
The document provides an overview of key changes and definitions in the CGST Act related to Budget 2018. Some important points include:
- Chapter 1 covers introductory provisions including important definitions like casual taxable person, non-resident taxable person, composite supply, mixed supply, exempt supply, non-taxable supply, and goods and services.
- Chapter 2 deals with tax officers and their powers. Important officers include those appointed by the central and state governments.
- Chapter 3 covers levy and collection of tax including the scope and time of supply, tax liability on composite/mixed supplies, the charging section, reverse charge, and the composition scheme.
- Chapter 4 defines the time and value
This document discusses the meaning of "supply" under the Integrated Goods and Services Tax (IGST) Act of 2016 in India. It defines supply as the levying of tax on the supply of any goods and/or services in the course of inter-state trade or commerce. A supply includes various forms of supply of goods and services for consideration during the course of business. It also discusses what types of transactions are considered a supply, including those in Schedules II and I of the IGST Act, and those that are specifically excluded from being a supply under Schedules III and IV. Composite and mixed supplies are also summarized.
The document discusses key provisions of the Union Territory Goods and Services Tax Bill, 2017. Some key points:
1) The bill establishes a goods and services tax for Union Territories in India to be called the Union Territory GST (UTGST). It will apply uniformly to all Union Territories and come into force on dates notified by the central government.
2) The UTGST will be levied on all intra-state supplies of goods and services in Union Territories at rates up to 20%, excluding alcohol. The tax will apply to e-commerce operators and in some cases reverse charge will apply.
3) Administration and enforcement will be carried out by Commissioners and other officers. Officers from the
The document summarizes key aspects of the GST electronic way bill (e-way bill) system in India. It explains that under GST, an e-way bill must be generated prior to transporting goods over Rs. 50,000 in value, and provides details on who can generate e-way bills, the information required, validity periods, documents that must be carried during transport, and procedures for inspection and verification of goods in transit. Unique e-way bill numbers are issued electronically on the common GST portal to the supplier, recipient, and transporter. E-way bills can generally be generated by suppliers, recipients, and transporters using the GST portal.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
The document provides an overview of the Goods and Services Tax (GST) that is being implemented in India. It discusses the key aspects of GST including:
- What GST is and the taxes it will replace
- Why GST is being implemented, primarily to create a common national market and reduce the complexity of indirect taxes
- How GST will be implemented through constitutional amendments and new central/state laws
- Details of the GST design including the key definitions, taxable events, rates, and compliance procedures.
- GST will be levied as Central GST (CGST) and State GST (SGST) on intra-state supplies, and Integrated G
The document provides an overview of key aspects of the Integrated Goods and Services Tax (IGST) Act in India. It notes that IGST is levied on all inter-state supplies of goods and services at a rate not exceeding 40%. Zero-rated supplies that allow for input tax credit include exports and supplies to special economic zones. Advance rulings under the IGST Act provide binding guidance on issues like classification and taxability. Refund provisions exist for taxes wrongly paid and for goods purchased in India by international tourists.
The document provides an overview of key changes and definitions in the CGST Act related to Budget 2018. Some important points include:
- Chapter 1 covers introductory provisions including important definitions like casual taxable person, non-resident taxable person, composite supply, mixed supply, exempt supply, non-taxable supply, and goods and services.
- Chapter 2 deals with tax officers and their powers. Important officers include those appointed by the central and state governments.
- Chapter 3 covers levy and collection of tax including the scope and time of supply, tax liability on composite/mixed supplies, the charging section, reverse charge, and the composition scheme.
- Chapter 4 defines the time and value
This document discusses the meaning of "supply" under the Integrated Goods and Services Tax (IGST) Act of 2016 in India. It defines supply as the levying of tax on the supply of any goods and/or services in the course of inter-state trade or commerce. A supply includes various forms of supply of goods and services for consideration during the course of business. It also discusses what types of transactions are considered a supply, including those in Schedules II and I of the IGST Act, and those that are specifically excluded from being a supply under Schedules III and IV. Composite and mixed supplies are also summarized.
The document discusses key provisions of the Union Territory Goods and Services Tax Bill, 2017. Some key points:
1) The bill establishes a goods and services tax for Union Territories in India to be called the Union Territory GST (UTGST). It will apply uniformly to all Union Territories and come into force on dates notified by the central government.
2) The UTGST will be levied on all intra-state supplies of goods and services in Union Territories at rates up to 20%, excluding alcohol. The tax will apply to e-commerce operators and in some cases reverse charge will apply.
3) Administration and enforcement will be carried out by Commissioners and other officers. Officers from the
The document summarizes key aspects of the GST electronic way bill (e-way bill) system in India. It explains that under GST, an e-way bill must be generated prior to transporting goods over Rs. 50,000 in value, and provides details on who can generate e-way bills, the information required, validity periods, documents that must be carried during transport, and procedures for inspection and verification of goods in transit. Unique e-way bill numbers are issued electronically on the common GST portal to the supplier, recipient, and transporter. E-way bills can generally be generated by suppliers, recipients, and transporters using the GST portal.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
The document provides an overview of the Goods and Services Tax (GST) that is being implemented in India. It discusses the key aspects of GST including:
- What GST is and the taxes it will replace
- Why GST is being implemented, primarily to create a common national market and reduce the complexity of indirect taxes
- How GST will be implemented through constitutional amendments and new central/state laws
- Details of the GST design including the key definitions, taxable events, rates, and compliance procedures.
- GST will be levied as Central GST (CGST) and State GST (SGST) on intra-state supplies, and Integrated G
The document compares normal tax payers under Section 9 of the CGST Act to composition levy tax payers under Section 10. Composition levy is an option for small businesses with turnover less than Rs. 1 crore to pay tax at a concessional rate instead of the normal rates. Composite and mixed supplies are classified based on their principal supply, while normal and composition levy taxpayers are distinguished based on aggregate turnover.
Service tax was introduced in India in 1994 on three services - telephone, insurance, and stock broking. Since then, the scope of service tax has gradually expanded to cover more services and increased rates. Currently, service tax of 14% plus cess is levied on a wide range of taxable services defined under negative list approach. The tax is levied under the constitutional authority of the central government and shared with states. Over the years, both the number of taxable services and rates of service tax have risen steadily to widen the tax base and boost government revenue from the growing services sector.
IGST is levied on inter-state supply of goods and services to monitor inter-state trade and ensure SGST accrues to the consuming state. IGST rate is equal to CGST plus SGST rate and is collected by the central government on inter-state transactions. Export of goods or services are considered zero-rated supplies under IGST and the exporter can claim refund of IGST paid or supply under bond without paying tax and claim refund of unutilized ITC. Import of goods is subject to IGST in addition to customs duty, while import of services where supplier is outside India, recipient within India and place of supply is India are liable to IGST on reverse charge.
The document discusses excise duty in India. It provides definitions and details on the following:
1) There are three types of excise duties in India - basic excise duty, additional excise duty, and special excise duty. Additional excise duty is shared between the central and state governments.
2) Excisable goods are those specified under the Central Excise Tariff Act as being subject to excise duty. The manufacturer or producer is liable to pay excise duty.
3) Evasion of excise duty can result in penalties ranging from 25-50% of the evaded duty amount, along with other financial and reputational consequences.
Analysis of Finance Act, 2020 vis-à-vis GST
The Finance Act, 2020 has made several amendments to the CGST Act, 2017 and corresponding amendments to the IGST Act, 2017 and UTGST Act, 2017. We have attempted to analyse the provision wise amendment made by the Finance Act, 2020 to the CGST Act, 2017.
This document discusses various aspects of CGST/SGST levy and collection under Section 9 of the CGST Act, including:
1. Rates not exceeding 20% apply to intra-state supplies except alcoholic liquor for human consumption.
2. Petrol and its by-products shall be levied with effect from the date notified by the government based on council recommendations.
3. For mixed and composite supplies, the highest tax rate among the goods or services in the combination is applied to calculate tax liability for mixed supplies, while the rate applicable to the principal supply is applied for composite supplies.
This document discusses the taxation of composite contracts under the proposed GST bill of 2017 in India. It addresses some key points:
1) Works contracts related to immovable property, including sale of under-construction apartments, will be taxed as services under GST. This aims to avoid double taxation that can currently occur under VAT and service tax.
2) The treatment of composite contracts related to movable property under GST concepts of composite and mixed supplies is unclear and will need further clarification.
3) Once works contracts are defined as services under GST, the distinction between goods and services is only relevant for determining the place of supply and taxation point.
Input tax credit (ITC) is a key feature of GST that aims to avoid cascading of taxes or "tax on tax". Under the current system, taxes paid at each stage of production and distribution cannot be offset, resulting in higher prices for consumers. GST will allow businesses to claim ITC for taxes paid on inputs at each stage of the supply chain. This will ensure that only the value added at each stage is taxed, eliminating cascading of taxes. ITC has to be claimed within time limits and is subject to certain restrictions to prevent misuse or use for non-business purposes. The seamless availability of ITC across India will create a common national market and boost economic growth.
The document summarizes the key provisions around e-way bills under the GST law. It discusses the 5 rules dealing with e-way bills - information to be provided prior to movement of goods, documents/devices to be carried during transit, verification of documents/conveyances during transit, inspection of goods, and facility for uploading detention details. It provides details on when an e-way bill is required, its validity period, documents to be carried, and consequences of acceptance/rejection of details by the recipient. RFID is required to be mapped to the e-way bill number for certain class of transporters.
This document provides an overview of key GST concepts including levy and collection, composition levy, input tax credit, registration procedures, tax invoices, and other documentation.
The main topics covered are levy and collection of CGST and SGST, composition levy eligibility and conditions, input tax credit eligibility and components, registration procedures including application, amendment and cancellation, and requirements for tax invoices, credit/debit notes, receipt/refund vouchers, and payment vouchers.
Tax Quest
Finance Act, 2016 has effected a number of changes that are effective from 01.06.2016 and this
alert seeks to provide a brief view on such changes.
1. Service Tax on Ocean Freight – Import Segment
This document provides an overview of Point of Taxation (POT) rules in India. Some key points:
- POT rules were introduced to bring uniformity in levy and collection of indirect taxes like excise, VAT, and service tax under GST.
- POT determines the applicable tax rate and due date for payment. It aims to link tax payment to provision of service or receipt of payment/invoice, whichever is earliest.
- Rule 3 provides the default POT - date of invoice or payment, whichever is earlier. Rule 4 overrides for cases involving a tax rate change. Rule 5 applies if a service is taxed for the first time.
- Rule 7 specifies POT for reverse charge mechanism cases
The document discusses interest liability under the GST Act. Section 50 deals with interest payable for delayed tax payments. Per the section and various court judgments, interest is typically levied on the net tax amount owed after considering available input tax credits. However, a recent Telangana High Court judgment dismissed a writ petition and held that interest should be calculated on the full gross tax liability until returns are filed to claim credits. Stakeholders now face uncertainty as amendments aligning the law with the intent of compensating the government for delayed net amounts have not been enacted.
The document discusses service tax implications in the real estate sector in India. It defines key terms like services, renting of immovable property, and works contracts. It outlines that renting is taxable, with exemptions for residential use. Construction is taxable with abatements, while sale after completion certificate is exempt. Works contracts are taxable based on segregation of material and labor costs. The document also provides case studies on applicability of taxes to construction of hospitals, roads, and renting arrangements with mixed-use properties.
The document provides information on electronic way (e-way) bills under the Goods and Services Tax (GST) regime in India. Some key points:
- E-way bills are required to be generated for the movement of goods of over Rs. 50,000 in value.
- Various notifications provide details on the nationwide implementation of the e-way bill system from January 2018.
- CGST Rules specify the procedures for generating e-way bills, including which parties are responsible for Parts A and B, validity periods, transfer procedures and exemptions.
- Non-compliance can attract penalties, and e-way bills help verify movement of goods and prevent tax evasion.
CBEC Clarifies 15 instances for service tax liability on services provided by...Kunal Gandhi
This document provides clarification on issues regarding the levy of service tax on services provided by the government or a local authority to business entities. It addresses 15 issues, providing clarification on topics such as services provided between governments, services to individuals, taxes/fees/duties, fines/penalties, eligibility for service tax exemption based on the amount charged, CENVAT credit eligibility and documents required to claim the credit. Illustrations are provided on how CENVAT credit can be claimed over 3 years for service tax paid on one-time charges for assignment of rights to use natural resources.
The Finance Bill of 2015 introduced changes to India's indirect tax system to rationalize taxes and bring them in line with the proposed Goods and Service Tax. Some key changes include extending the time limit to claim CENVAT credit to 1 year, allowing electronic maintenance of records, exempting ambulance services and reducing service tax on movies, senior citizen insurance, and transport. The service tax rate was increased to 14% and a Swachh Bharat Cess of 2% was introduced on notified taxable services. [END SUMMARY]
Here you will get how GST will impact you? which are the taxable events in GST regimes, what would be the time of supply in GST regime and many more things. All in all, this is the complete guide to GST.
The document provides an overview of VAT implementation in the Gulf Cooperation Council (GCC) countries, with a focus on the United Arab Emirates (UAE). It notes that GCC countries are introducing VAT due to declining oil revenues. It then summarizes the key laws and regulations governing VAT in the UAE, including the unified VAT agreement, UAE VAT law, excise tax law, and tax procedures law. Finally, it outlines the basic features of how VAT is determined and administered under the UAE VAT law.
The key elements necessary to constitute a taxable supply under GST are: 1) the supply must occur within a taxable territory, 2) the supply must be made by a registered taxable person, 3) the supply must involve goods or services, and 4) the supply must be made for consideration in the course or furtherance of business. A taxable supply is defined as a supply of goods or services that is chargeable to GST. For a supply to be considered a taxable supply, it must meet the requirements outlined in the document.
The document summarizes new VAT rules in Italy taking effect in 2015, including the expansion of the reverse charge mechanism and introduction of split payment rules for supplies to public bodies. It also outlines changes to VAT refund procedures reducing the need for guarantees, simplifications for usual exporters and VAT warehousing rules. The upcoming introduction of a VAT group regime in 2016 and plans to promote e-invoicing are also mentioned.
The document compares normal tax payers under Section 9 of the CGST Act to composition levy tax payers under Section 10. Composition levy is an option for small businesses with turnover less than Rs. 1 crore to pay tax at a concessional rate instead of the normal rates. Composite and mixed supplies are classified based on their principal supply, while normal and composition levy taxpayers are distinguished based on aggregate turnover.
Service tax was introduced in India in 1994 on three services - telephone, insurance, and stock broking. Since then, the scope of service tax has gradually expanded to cover more services and increased rates. Currently, service tax of 14% plus cess is levied on a wide range of taxable services defined under negative list approach. The tax is levied under the constitutional authority of the central government and shared with states. Over the years, both the number of taxable services and rates of service tax have risen steadily to widen the tax base and boost government revenue from the growing services sector.
IGST is levied on inter-state supply of goods and services to monitor inter-state trade and ensure SGST accrues to the consuming state. IGST rate is equal to CGST plus SGST rate and is collected by the central government on inter-state transactions. Export of goods or services are considered zero-rated supplies under IGST and the exporter can claim refund of IGST paid or supply under bond without paying tax and claim refund of unutilized ITC. Import of goods is subject to IGST in addition to customs duty, while import of services where supplier is outside India, recipient within India and place of supply is India are liable to IGST on reverse charge.
The document discusses excise duty in India. It provides definitions and details on the following:
1) There are three types of excise duties in India - basic excise duty, additional excise duty, and special excise duty. Additional excise duty is shared between the central and state governments.
2) Excisable goods are those specified under the Central Excise Tariff Act as being subject to excise duty. The manufacturer or producer is liable to pay excise duty.
3) Evasion of excise duty can result in penalties ranging from 25-50% of the evaded duty amount, along with other financial and reputational consequences.
Analysis of Finance Act, 2020 vis-à-vis GST
The Finance Act, 2020 has made several amendments to the CGST Act, 2017 and corresponding amendments to the IGST Act, 2017 and UTGST Act, 2017. We have attempted to analyse the provision wise amendment made by the Finance Act, 2020 to the CGST Act, 2017.
This document discusses various aspects of CGST/SGST levy and collection under Section 9 of the CGST Act, including:
1. Rates not exceeding 20% apply to intra-state supplies except alcoholic liquor for human consumption.
2. Petrol and its by-products shall be levied with effect from the date notified by the government based on council recommendations.
3. For mixed and composite supplies, the highest tax rate among the goods or services in the combination is applied to calculate tax liability for mixed supplies, while the rate applicable to the principal supply is applied for composite supplies.
This document discusses the taxation of composite contracts under the proposed GST bill of 2017 in India. It addresses some key points:
1) Works contracts related to immovable property, including sale of under-construction apartments, will be taxed as services under GST. This aims to avoid double taxation that can currently occur under VAT and service tax.
2) The treatment of composite contracts related to movable property under GST concepts of composite and mixed supplies is unclear and will need further clarification.
3) Once works contracts are defined as services under GST, the distinction between goods and services is only relevant for determining the place of supply and taxation point.
Input tax credit (ITC) is a key feature of GST that aims to avoid cascading of taxes or "tax on tax". Under the current system, taxes paid at each stage of production and distribution cannot be offset, resulting in higher prices for consumers. GST will allow businesses to claim ITC for taxes paid on inputs at each stage of the supply chain. This will ensure that only the value added at each stage is taxed, eliminating cascading of taxes. ITC has to be claimed within time limits and is subject to certain restrictions to prevent misuse or use for non-business purposes. The seamless availability of ITC across India will create a common national market and boost economic growth.
The document summarizes the key provisions around e-way bills under the GST law. It discusses the 5 rules dealing with e-way bills - information to be provided prior to movement of goods, documents/devices to be carried during transit, verification of documents/conveyances during transit, inspection of goods, and facility for uploading detention details. It provides details on when an e-way bill is required, its validity period, documents to be carried, and consequences of acceptance/rejection of details by the recipient. RFID is required to be mapped to the e-way bill number for certain class of transporters.
This document provides an overview of key GST concepts including levy and collection, composition levy, input tax credit, registration procedures, tax invoices, and other documentation.
The main topics covered are levy and collection of CGST and SGST, composition levy eligibility and conditions, input tax credit eligibility and components, registration procedures including application, amendment and cancellation, and requirements for tax invoices, credit/debit notes, receipt/refund vouchers, and payment vouchers.
Tax Quest
Finance Act, 2016 has effected a number of changes that are effective from 01.06.2016 and this
alert seeks to provide a brief view on such changes.
1. Service Tax on Ocean Freight – Import Segment
This document provides an overview of Point of Taxation (POT) rules in India. Some key points:
- POT rules were introduced to bring uniformity in levy and collection of indirect taxes like excise, VAT, and service tax under GST.
- POT determines the applicable tax rate and due date for payment. It aims to link tax payment to provision of service or receipt of payment/invoice, whichever is earliest.
- Rule 3 provides the default POT - date of invoice or payment, whichever is earlier. Rule 4 overrides for cases involving a tax rate change. Rule 5 applies if a service is taxed for the first time.
- Rule 7 specifies POT for reverse charge mechanism cases
The document discusses interest liability under the GST Act. Section 50 deals with interest payable for delayed tax payments. Per the section and various court judgments, interest is typically levied on the net tax amount owed after considering available input tax credits. However, a recent Telangana High Court judgment dismissed a writ petition and held that interest should be calculated on the full gross tax liability until returns are filed to claim credits. Stakeholders now face uncertainty as amendments aligning the law with the intent of compensating the government for delayed net amounts have not been enacted.
The document discusses service tax implications in the real estate sector in India. It defines key terms like services, renting of immovable property, and works contracts. It outlines that renting is taxable, with exemptions for residential use. Construction is taxable with abatements, while sale after completion certificate is exempt. Works contracts are taxable based on segregation of material and labor costs. The document also provides case studies on applicability of taxes to construction of hospitals, roads, and renting arrangements with mixed-use properties.
The document provides information on electronic way (e-way) bills under the Goods and Services Tax (GST) regime in India. Some key points:
- E-way bills are required to be generated for the movement of goods of over Rs. 50,000 in value.
- Various notifications provide details on the nationwide implementation of the e-way bill system from January 2018.
- CGST Rules specify the procedures for generating e-way bills, including which parties are responsible for Parts A and B, validity periods, transfer procedures and exemptions.
- Non-compliance can attract penalties, and e-way bills help verify movement of goods and prevent tax evasion.
CBEC Clarifies 15 instances for service tax liability on services provided by...Kunal Gandhi
This document provides clarification on issues regarding the levy of service tax on services provided by the government or a local authority to business entities. It addresses 15 issues, providing clarification on topics such as services provided between governments, services to individuals, taxes/fees/duties, fines/penalties, eligibility for service tax exemption based on the amount charged, CENVAT credit eligibility and documents required to claim the credit. Illustrations are provided on how CENVAT credit can be claimed over 3 years for service tax paid on one-time charges for assignment of rights to use natural resources.
The Finance Bill of 2015 introduced changes to India's indirect tax system to rationalize taxes and bring them in line with the proposed Goods and Service Tax. Some key changes include extending the time limit to claim CENVAT credit to 1 year, allowing electronic maintenance of records, exempting ambulance services and reducing service tax on movies, senior citizen insurance, and transport. The service tax rate was increased to 14% and a Swachh Bharat Cess of 2% was introduced on notified taxable services. [END SUMMARY]
Here you will get how GST will impact you? which are the taxable events in GST regimes, what would be the time of supply in GST regime and many more things. All in all, this is the complete guide to GST.
The document provides an overview of VAT implementation in the Gulf Cooperation Council (GCC) countries, with a focus on the United Arab Emirates (UAE). It notes that GCC countries are introducing VAT due to declining oil revenues. It then summarizes the key laws and regulations governing VAT in the UAE, including the unified VAT agreement, UAE VAT law, excise tax law, and tax procedures law. Finally, it outlines the basic features of how VAT is determined and administered under the UAE VAT law.
The key elements necessary to constitute a taxable supply under GST are: 1) the supply must occur within a taxable territory, 2) the supply must be made by a registered taxable person, 3) the supply must involve goods or services, and 4) the supply must be made for consideration in the course or furtherance of business. A taxable supply is defined as a supply of goods or services that is chargeable to GST. For a supply to be considered a taxable supply, it must meet the requirements outlined in the document.
The document summarizes new VAT rules in Italy taking effect in 2015, including the expansion of the reverse charge mechanism and introduction of split payment rules for supplies to public bodies. It also outlines changes to VAT refund procedures reducing the need for guarantees, simplifications for usual exporters and VAT warehousing rules. The upcoming introduction of a VAT group regime in 2016 and plans to promote e-invoicing are also mentioned.
issue 3/2014 of Indirect Tax News.
This newsletter informs readers about issues of practical importance in the field of VAT and similar indirect taxes, such as GST. Experts from all over the world provide first-hand information on recent developments in legislation, jurisdiction and tax authorities’ opinions and Directives.
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
1) The Upper Tribunal ruled that the transfer of a business into a VAT group can qualify as a transfer of a going concern (TOGC), meaning no VAT is due. This contradicted HMRC's previous policy.
2) HMRC has now reversed its policy in line with the Upper Tribunal's ruling, stating in Revenue & Customs Brief 11/2016 that transfers into and out of a VAT group can be TOGCs if certain conditions are met.
3) A First-tier Tax Tribunal case involved a company that paid VAT on wind turbines from a supplier that went into administration before delivering the goods. The tribunal ruled the company could not reclaim the VAT since the turbines were not supplied.
GAZT VAT guide on Financial Services - EnglishFarhan Osman
This guideline is directed for businesses involved in the Financial Services sector, including commercial banks, insurers, asset financing companies; or any business that provides financial services as part of its overall activities.
Key Amendments proposed under the Indirect Tax lawsTaxmann
Budget 2021 has introduced several amendments under the Indirect Tax Laws. In this document, we have highlighted key amendments proposed under Customs and GST.
ALBANIA Chinese citizens excluded from Type C Visa regime
Fiscal package 2020 in Albania
Tax Procedures in Albania 2020
Value Added Tax 2020
Albania Personal And Profit Tax 2020
Albania National Taxes 2020
ALBANIA TAX FREE Real Estate Donation to Family Members 2020
VIETNAM TAX ISSUES – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEME...Dr. Oliver Massmann
The document discusses several issues related to Vietnam's tax system and opportunities under the EU-Vietnam Free Trade Agreement (EVFTA). It notes inconsistencies in how local tax departments apply tax incentives for businesses and calls for clearer guidance. It also points out complexities for enterprises in complying with the declarations and incentives across different documents. Additionally, it raises concerns about discrimination in value-added tax refunds for businesses with output VAT at 5% compared to exporters. Overall, it advocates for simplifying regulations and ensuring fair and consistent treatment of businesses under Vietnam's tax system.
Trade and commerce legal updates from across the Asia Pacific region, EU, and USWilliam Marshall
Highlights of trade and commercial legal updates from more than 13 jurisdictions across the Asia Pacific region, Europe, and the US presented by Baker & McKenzie's Asia Pacific Trade & Commerce practice.
VIETNAM TAXATION – OUTLOOK ON THE EUROPEAN UNION VIETNAM FREE TRADE AGREEMENT...Dr. Oliver Massmann
The document discusses several issues with Vietnam's taxation system and opportunities presented by the EU-Vietnam Free Trade Agreement (EVFTA). It identifies inconsistencies between central government policies and local tax department practices, contradictory regulations, and complexity in VAT calculation and refund rules that create difficulties for businesses. Implementation of clearer rules and guidelines is needed to resolve tax payment issues, properly apply incentives, and avoid penalties from changing interpretations. The EVFTA is expected to boost investment and trade but also influence Vietnam to adopt more fixed and determined tax rules for greater certainty.
This document provides a 3-paragraph summary of Legal Update #2/2015 by LexLoci LLP, which discusses new laws passed by the Mongolian Parliament during its spring session from April to July 2015. The update summarizes key provisions of 5 new laws on pledge of movable properties, value added tax, accounting, auditing, and encouraging manufacturing. The document is intended to inform readers of recent legal changes in Mongolia but not provide legal advice. Readers with specific legal questions are advised to consult an attorney.
Spring session 2015 new laws of mongolia (by lex loci)Serod Ichinkhorloo
This document provides a summary of 13 new laws and amendments to existing laws passed by the Parliament of Mongolia between April and July 2015. It summarizes the key aspects of each new law, including establishing a legal framework for pledging movable property; increasing the VAT threshold and expanding what goods and services are subject to VAT; requiring accounting and financial documents be kept in Mongolian and allowing electronic documents; revising auditing requirements; and providing government support for domestic manufacturing. The document is intended to inform readers of major new legislation in Mongolia but does not constitute legal advice.
The document summarizes Mongolian legislative changes affecting investors between 2013-2015. Key laws that were approved or amended include the Investment Law, Mineral Law, Petroleum Law, Power Energy Law, Law on Free Zones, Industries Promotion Law, and others. The changes aimed to increase foreign investment by providing tax incentives, stabilizing regulations, and creating favorable conditions for foreign investors.
The document summarizes key aspects of India's proposed Goods and Services Tax (GST) model law. It outlines 18 essential features of the law, including that it will levy tax on the supply of goods and services, define taxable persons and businesses, determine the time and value of taxable supplies, provide for input tax credits, registration requirements, tax returns, payments, and transitional provisions for existing taxes. The model law aims to simplify India's tax regime by introducing uniform GST across states to replace existing indirect taxes.
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
The Cabinet Secretary for National Treasury in his Budget speech announced enactment of he long awaited VAT Regulations 2017. This, after thee first drafts were published in 2014.
The subsidiary legislation seeks to streamline the VAT Act with the Tax Procedures Act 2015 and will assist in interpretation and implementation of the VAT Act 2013. These regulations took effect from 4 April 2017.
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Changes in uganda's tax legislation
1. Changes in Uganda’s tax
legislation for the year 2011/12
Face to face with the future
July 2011
2. Contents
1 Introduction 3
2 Value Added Tax(Amendment) Bill, 2011 4
3 Value Added Tax (Amendment) Regulations, 2011 8
4 Income Tax (Amendment) Bill, 2011 10
5 Stamp (Amendment) Bill, 2011 15
6 The Excise Tariff ( Amendment) Bill, 2011 16
7 The Finance(Amendment) Bill, 2011 17
8 The East African Community Gazette No. 24 of 2011 18
Contacts 20
3. 1 Introduction
On 8th June 2011, the Minister of Finance, Planning and Economic Development, Honourable Maria
Kiwanuka delivered her budget speech to the Parliament of Uganda. She mentioned there would be various
changes to tax policy, the finer details of which were to be spelt out in tax bills and related regulations that
would be published by the Government of Uganda.
We are happy to announce that these bills and related regulations have been published. They comprise:
• The Finance (Amendment) Bill, 2011
• The Income Tax (Amendment) Bill, 2011
• The Value Added Tax (Amendment) Bill, 2011
• The Stamps (Amendment) Bill, 2011
• The Excise Tariff (Amendment) Bill, 2011
• The Income Tax (Transfer Pricing) Regulations, 2011
• The Value Added Tax (Amendment) regulations, 2011
• The East African Gazette No. 24 of 2011
Though the bills are yet to be discussed by the Parliament of Uganda, they have the force of law from 1st
July 2011 pursuant to the provisions of The Taxes and Duties (Provisional Collection) Order, statutory
instrument number 28 of 2011. This order confers the authority of law on these bills for a period of 4
months. This period allows Parliament ample time to carefully scrutinise the provisions of these bills and
where necessary propose changes before they are enacted into Acts of Parliament. If there are any
changes proposed before enactment by the Parliament of Uganda, we will let you know.
The regulations also have the force of law from 1st July 2011. They will not be subjected to any
parliamentary debate because the legislative authority of making these regulations is devolved to the
Minister of Finance, Planning and Economic Development.
This publication discusses the amendments to the tax laws affecting both direct and indirect taxes. It
excludes the transfer pricing regulations which we have addressed separately in an earlier tax alert. Please
contact us if you need a copy of our analysis of the transfer pricing regulations.
4. 2 Value Added Tax(Amendment) Bill,
2011
The Value Added Tax (Amendment) Bill, 2011 introduces wide ranging changes to the VAT regime in
Uganda. Whilst these changes seek to expand the VAT base and increase revenue collections, they also
bring about interpretational difficulties.
Definition of “goods” and “supply of goods” for VAT purposes
Sections 1 (h) and 10(d) of the VAT Act have been amended. The supply of thermal, electrical energy,
heating, gas, refrigeration, air-conditioning and water has been excluded from the definition of goods. The
provision of these items now falls under the definition of services for VAT purposes.
Comment
1. VAT will continue to apply as it has been previously. The reclassification of the above mentioned
items as services was done to enable diplomats and accredited personnel obtain relief from VAT in
respect of services received from utility service providers as envisaged by the law. If the above
mentioned items continued to be classified as goods for VAT purposes, diplomats and accredited
personnel would not access the relief because the law refers to relief from VAT in respect of services.
Charge to Value Added Tax on imported services
Sections 4(a), 4(c) and 18(1) of the VAT Act have been amended. The word in “Uganda” under section 4(a)
has been deleted and inserted in section 8 (1).A supply is taxable for VAT purposes if it is made in
“Uganda” by a taxable person for consideration as part of their business activities.
The amendment to section 4(c) now introduces the words other than exempt service. This section is
supplemented by a new provision in section 20A which states that an import of a service is an exempt
import for VAT purposes if the service would be exempt had it been supplied in Uganda.
Comment
1. The amendment to section 4 (a) and 18(1) does not change the current VAT treatment. VAT will be
chargeable on every taxable supply made by a taxable person in Uganda as it was previously.
5. 2. Including the words “other than exempt services” to section 4(c) removes the uncertainty that
surrounded imported services. Opinion has been diverse whether VAT was applicable or not. It is now
obvious that imported services listed in the exempt schedule are exempt from VAT at importation so
that reverse charge VAT will not apply.
Place of supply of goods
Section 15 of the VAT Act has also been amended. Previously goods have been deemed to be supplied in
Uganda for VAT purposes if they were delivered or made available in Uganda. An addition criterion has
been included. Goods are deemed to be supplied in Uganda if the goods are in Uganda when
transportation commences, if the delivery or making available of those goods, involves transportation. The
relevance of this provision stems from the fact that unless goods are deemed to be supplied in Uganda,
VAT obligations as spelt out in the Act do not apply.
Comment
1. It is possible that this provision is intended to cover situations where organisations set up facilities in
Uganda solely for purposes of storing inventory to be supplied to neighbouring countries. It was
previously possible to escape VAT obligations if the goods were not delivered or made available in
Uganda. With this amendment, if the delivery or making available of the goods involves transportation,
Uganda will be deemed the place of supply for VAT purposes even if the supplier is established
outside Uganda.
2. A second possibility would be that if goods are deemed to be supplied in Uganda, the zero rate for
VAT purposes would not apply even if the goods are exported outside Uganda. This does not appear
rd
to be correct on further consideration as the 3 schedule to the VAT Act continues to state that goods
are zero rated for VAT purposes if they are exported from Uganda. Goods are deemed to be exported
from Uganda if they are delivered to, or made available at, an address outside Uganda as evidenced
by documentary proof acceptable to the tax authorities.
Place of supply of services
Section 16 of the VAT Act has been replaced with a new provision. This sets out rules for establishing
when services are supplied in Uganda for VAT purposes. The significance of the new rules stems from the
fact that unless services are deemed to be supplied Uganda, VAT obligations as spelt out in the law do not
apply. The complexity of the new rules comes from their apparent intention to bring within the scope of
Ugandan VAT a range of services which are remotely provided, particularly via mobile phone or the
internet. Under the new rules services are deemed to be supplied in Uganda if:
1. The business of the supplier of the services is in Uganda
2. The recipient of the supply is not a taxable person and the services are physically performed in Uganda
by a person who is in Uganda at the time of the supply
6. 3. The recipient of the supply is not a taxable person and the services are in connection with immovable
property in Uganda
4. The recipient of the supply is not a taxable person and the services are radio or television broadcasting
services received at an address in Uganda
5. The recipient of the supply is not a taxable person and the services are electronic services delivered to
a person in Uganda at the time of supply.
6. The recipient of the supply is not a taxable person and the supply is a transfer or assignment of, or
grant of a right to use a copyright, patent, trademark or similar right in Uganda
7. The recipient of the supply is not a taxable person and the services are telecommunication services and
the supply is initiated by a person in Uganda at the time of the supply other than a supply initiated by a
telecommunication supplier or a person who is global roaming while temporarily in Uganda.
Comment
1. It appears the proposed amendment does not affect the application of the zero rate for VAT purposes.
Services will continue to be treated as zero rated for VAT purposes if they are supplied by a person
engaged exclusively in handling goods for exports at a port of exit or are supplied for use or
consumption outside Uganda as evidenced by documentary proof acceptable to the tax authorities.
2. Items 2-7 capture “retail” transactions received in Uganda by end-users from non resident businesses.
Such services are deemed to be supplied in Uganda if they are received by non registered/non
taxable persons in Uganda. The implication of this on non resident businesses is that they will be
obliged to register for VAT purposes in Uganda if they meet the VAT registration thresholds.
3. If the items in 2-7 are received by VAT registered/ taxable persons from non resident businesses, they
will retain the character of imported services and will therefore be accounted for under the normal
rules of accounting for imported services.
4. Revenue collection in respect of items 2-7 will depend on the ability of the URA to track and compel
the registration for VAT purposes of those service providers. The previous approach applicable to Pay
TV, radio, telephone and other communication services that compelled their representatives in
Uganda to account for the VAT on those services was quite efficient.
Registration for non resident persons
A new section (70A) has been introduced under which the URA can compel the registration for VAT
purposes of non resident businesses. If the non resident business does not have a fixed place of business
in Uganda, tax authorities may require the non resident taxpayer to appoint a VAT representative in Uganda
or, on failing appointment by the non-resident, appoint a VAT representative unilaterally.
Comment
1. This provision supplements the existent VAT law on the question of registration for VAT purposes.
Business making taxable supplies in Uganda and meeting the registration thresholds are obliged to
register for VAT purposes.
2. It remains to be seen how successful the tax authorities will be in tracking and compelling non resident
7. businesses to register for VAT purposes in Uganda.
Amendment of the exempt supplies schedules
Two items have been added to the list of exempt supplies:
• Ambulances, and
• The supply of power generated by solar
The supply of the following items is now subject to VAT at the standard rate of 18%:
• Biodegradable packaging materials;
• Motor vehicles or trailers of a carrying capacity of 3.5 tonnes or more designed for the transport of
goods.
• Residential property by way of sale.
Comments
1. A special rate of 5% was applicable to the sale of residential property under specified conditions until
2010. The sale of residential property is now subject to VAT at the standard rate of 18%. VAT however
does not apply on the letting or leasing of residential property. This change will give developers the
possibility to recover input VAT, but it will hit private individuals very hard as they will not be able to
recover the VAT charged.
2. The supply of power generated by solar is exempt from VAT. It remains to be seen whether
entrepreneurs will be moved by this exemption to start commercial generation of solar power.
3. Similarly, exempting solar power from VAT may not necessarily result in reduced prices. This is
because suppliers of these items will not be able to claim the input VAT they suffer in the course of their
business. Inevitably, the cost of this irrecoverable input VAT will be passed onto the buyer, so this will
not be as big a saving as it might at first sight have seemed.
8. 3 Value Added Tax (Amendment)
Regulations, 2011
Regulations are not subjected to Parliamentary debate and have the force of law as soon as they are
published by the relevant ministry. The provisions of these VAT regulations thus came into force with effect
from 1st July 2011.
Revocation of investment trader facility
The investment trader facility has been revoked. Under this facility, an investor who intended to make
taxable supplies in Uganda could apply to be registered as an investment trader for VAT purposes so that
they could be able to claim any input VAT suffered in the course of their set up operations.
Comment
This revocation has the potential to increase the cost of doing business in Uganda because business will
be unable to claim back input VAT suffered on their start up operations. This could have a major impact
on the economics of infrastructure projects with long lead times such as oil field development, railway
refinery and power station construction.
Relief for diplomats
Regulation 7 has been amended to bring it up to date. Diplomats and accredited personnel are entitled to
obtain VAT relief in case of services provided by utility services providers. The regulation previously
referred to defunct utility providers such as the Uganda Electricity Board and Uganda Posts and
Telecommunications Corporation. The regulation now refers to “persons providing utility services”.
Export of goods
Regulation 11 has been amended to give the URA the right to require the labelling of goods designated for
export.
Branch transactions
Regulation 13 has been amended to define the VAT treatment of branch and head office transactions.
Ugandan based branches will have to account for reverse charge VAT in respect of services provided by
the head office situated outside Uganda. The taxable value will be the arm’s length value of this transaction.
9. Comment
1. This amendment does not completely address the VAT treatment of transactions between a branch
and its head office. The position taken in the European Union is that a branch and its head office are
one entity. Therefore VAT does not apply on intra company transactions.
2. It is still not yet clear VAT would apply on transactions between a branch and head office both
situated in Uganda.
3. Nonetheless, in this regulation the URA affirms that services supplied by a head office outside
Uganda to a branch in Uganda are VATable.
10. 4 Income Tax (Amendment) Bill,
2011
There have been a number of changes proposed in the Income Tax (Amendment) Bill, 2011. These
changes aim to expand the tax base and clarify various provisions of the Act.
Definition of royalty
The definition of royalty in section 2 of the Income Tax Act has been expanded to include internet
broadcasting. The relevant definition now includes the use of, or right to use, or the receipt of, or right to
receive, any video or audio material transmitted by satellite, cable, optic fibre or similar technology for use in
connection with television, internet or radio broadcasting.
Comment
1. Payments made to non resident businesses providing internet broadcasting will be liable to
withholding tax at the rate of 15% or another rate stipulated by an applicable double tax agreement.
2. The internet is an important engine of economic growth. If this new tax on internet broadcasting
increases the cost of internet, this will have adverse impact on business.
Employee share acquisition schemes
The use of employee stock options has become an increasingly significant component of many employees’
compensation. Many companies use employee stock options to compensate, retain and attract employees.
The Income Tax Act introduces two amendments in section 19 and 6A regarding the taxation of employee
share acquisition schemes.
1. The value of a right or option to acquire shares granted to an employee under an employee share
acquisition scheme is now excluded from employment under section 19(2) (h).
Comment
1. A share option gives an employee a right to buy certain number of shares at a future date at a fixed
price. It would be absurd to tax an employee on mere receipt of a right to acquire shares. In several
other jurisdictions, the above does not crystallise a tax obligation especially where they are not regularly
traded.
11. 2. Section 6A guides taxpayers how to account for tax in respect of gains arising from the disposal of a
right or option to acquire shares. The interpretation and application of this amendment is likely to be
problematic unless the URA issues express guidance.
Employees whose employment income consists of gains from the disposal of a right or option to
acquire shares will not be subject to PAYE as provided by section4 (4). This section obliges an
employer deduct PAYE from the employee’s salary. There is no corresponding duty on the employees
to file tax returns unless they derived non employment income.
Comment
1. One may interpret this provision to mean that if the employment income of the employee includes
the above mentioned gains, section 4 (4) does not entirely apply. This would imply that the
employee would have to file own tax returns in respect of all the employment income as opposed to
the position under section 4(4) when PAYE is accounted for by the employer.
2. A second possibility would be that the employee would only have to file returns in respect of the
gains. Since this income inure
Income derived from agro processing exempt from tax
Section 21(z) of the Income Tax Act exempts income derived from agro-processing from tax and this has
been amended to make the conditions more stringent. It is interesting to note that since its introduction in
July 2008, this provision has been amended every year.
The amendment provides tougher conditions that taxpayers need to meet in order to enjoy this incentive.
The revised conditions are:
• the taxpayer or an associate of the person has not previously carried on agro-processing of a similar or
related agricultural product in Uganda;
• the taxpayer invests in plant and machinery that has not previously been used in Uganda by any person
in agro-processing to process agricultural products for final consumption;
• the taxpayer is issued with a certificate of exemption for that year of income by the Commissioner. This
certificate is valid for one year and but renewable annually.
Comment
1. This amendment contradicts the intention of the policy makers who proposed this incentive. The
category of taxpayers who will enjoy this incentive under the amended provision is very narrow.
2. It appears only new investments in agro processing are targeted. Existing investments do not
qualify.
3. A tax payer will similarly not enjoy this incentive regardless of investment in new plant and
machinery if any of their related parties has previously engaged in agro processing.
12. Definition of branch
The definition of the word branch under S.78 of the Income Tax Act has been amended. A branch now
includes a place where a person has or is using or installing substantial machinery or equipment for 90 days
or more. Previously no time limit was mentioned.
Comment
1. This is a useful clarification. Previously it was possible in theory to create a branch even if
equipment or machinery was used for only 1 day, which was not in line with international practice
and difficult to enforce. There remains uncertainty over what constitutes “substantial” however.
Royalty sourced from Uganda
Section 79(j) of the Income Tax relating to royalties being deemed to be sourced from Uganda has been
replaced. This amendment does not change the position of the law as it previously applied to royalties. The
new provision of the law when read together with section 2 (nnn) of the Income Tax Act provides an
unequivocal explanation of when income from royalties is deemed to be sourced from Uganda.
Comment
1. The previous provisions of S.79 (J) were repetitive when read together with section 2(nnn) of the
Income Tax Act. The amendment deletes those repetitive provisions.
Non resident persons providing communication services
Section 86(4) of the Income Tax Act has also been amended. Non resident persons who derive income in
respect of providing internet connectivity will be subject to 5% tax on the gross amount derived.
Previously, the rate of 5% applied only to non residents carrying on the business of transmitting messages
by cable, radio, optical fibre or satellite communication.
Anti treaty shopping provision
The amendment to S.88 (5) clarifies the circumstances under which tax payer may not benefit from the
provisions double tax agreements to which Uganda is party.
Comment
1. It is a generally acceptable principle of international law that treaties override domestic law. It is
questionable whether S.88 (5) in its current or proposed form can limit availability of treaty relief where
the requirements of the treaty itself are met. Please refer to our tax alert of 1/07/2011 for our in-depth
discussion on this.
13. Definition of petroleum
A definition of petroleum has been provided in section 89A for purposes of the provisions applicable to the
taxation of petroleum activities in Uganda. “Petroleum” means any naturally occurring hydrocarbons
including crude oil or natural gas, or other hydrocarbons produced or capable of being produced from
reservoirs and other substances produced in association with such hydrocarbons.
Comment
1. The Income Tax Act contains special provisions that are exclusively applicable to the taxation of
petroleum operations. The Act did not define petroleum. The definition of petroleum was found in the
Petroleum (Exploration and Production) Act and it was not clear whether that definition could be applied
for income tax purposes.
Non resident services contract
Though the law previously under section 121 of the Income Tax Act required taxpayers who entered into
service agreements with non resident persons to notify the URA within 30 days of entering into such
agreement, there was no sanction for breach of this obligation.
Criminal and civil sanctions have now been introduced. A taxpayer who does not notify the URA of this
contract will be personally liable for the tax due on the income arising under the contract. The criminal
sanction in the event of breach of this obligation will be a fine not exceeding Ushs 500,000.
Comment
1. The requirement to notify URA of the existence of a service contract with non resident was meant to
seal potential loopholes of tax evasion. What this amendment does not clarify is whether the civil
sanction would still apply if the taxpayer withheld and remitted the tax in respect of the service contract
to the URA but does not notify the URA of this contract within the 30 day period.
2. The criminal sanction will be imposed after prosecution and judgment by the relevant criminal courts.
This is strict liability offence. Courts will not inquire into the intention of the taxpayer but rather the
omission to notify the URA. It is therefore a straight forward matter for which the URA will easily obtain
a favourable judgement.
Tax Identification Number
Under an amendment proposed in section 135, the URA shall issue Tax Identification Numbers (TINS) to all
taxpayers and may require that taxpayers use the TINS on any notices or other documents used for tax
purposes in accordance with the provisions of the tax laws.
Comment
1. The URA will prescribe the categories of taxpayers who will be required to register and obtain
TINS.TINS will enable the URA trace and ensure that all incomes received by the taxpayers are duly
14. taxed.
Criminal sanctions
Criminal sanctions for non compliance of taxpayers in respect of information requests by the tax authorities
are to be introduced in section 140. A taxpayer who will not respond to a request for information from the
URA will be committing an offence and liable to a fine not exceeding Ushs 500,000.
Comment
1. The criminal sanction will be imposed after prosecution and judgment by the relevant criminal courts.
This is strict liability offence. Courts will not inquire into the intention of the taxpayer but rather the
omission to provide information to the URA. It is therefore a straight forward matter for which the
URA will easily obtain a favourable judgement.
15. 5 Stamp duty (Amendment) Bill, 2011
Exemption from stamp duty
Loan instruments for amounts not exceeding Ushs 2,000,000 have been exempted from Stamp Duty. It is
not clear how the URA will deal with schemes designed to take advantage of this exemption from Stamp
Duty. Ingenious taxpayers may split loans exceeding Ushs 2,000, 000 into smaller loan denominations.
Unlike other tax laws that give the URA power to recharacterise transactions whose main purpose is the
avoidance of tax, the Stamps Act does not have this provision.
16. 6 The Excise Tariff ( Amendment)
Bill, 2011
Illuminating kerosene
Excise duty on illuminating kerosene has been removed. Excise duty of Ushs 200 per litre of kerosene was
previously applicable.
Sugar
Excise duty per kilo of sugar has been reduced from Ushs 50 to Ushs 25.
Cigarettes
The rates of excise duty on cigarettes are determined mainly by reference to how the cigarettes are
packaged. Cigarettes are packaged as soft cup, hinge lid and other packaging that is neither soft cup nor
hinge lid. The soft cup is also referred to as the soft pack. It is essentially a pack of light paper construction
which offers less protection to cigarettes and is also less costly to produce. The hinge lid offers much
protection compared to the soft cup. It is usually a cardboard pack. Cigarettes not packed as soft cup or
hinge lid are classified as others.
• Excise duty on soft cup cigarettes which have 70% of its constituents being local content has been
increased from UGX 19,000 to UGX 22,000 per 1000 sticks.
• Excise duty on other soft cup cigarettes has been increased from UGX 21,000 to UGX 25,000 per 1000
sticks.
• Excise duty on hinge lid cigarettes has been increased from UGX 48,000 to UGX 55,000 per 1000
sticks.
• Excise duty on other cigarettes has been increased from 150% to 160%.
17. 7 The Finance(Amendment) Bill,
2011
Export of raw hides and skins
The levy on the export of raw hides and skins of animals has been increased from USD 0.4 to US 0.8 per
kilo. This is aimed at encouraging the industrial processing and utilisation of skins and hides within Uganda.
Publication of Practice Notes
The law now imposes an obligation on the URA to publish Practice Notes it issues in the Uganda Gazette.
Practice Notes ordinarily bind the URA. What this amendment does not clarify is whether the legality of
these Notes will be affected by non publication in the Gazette.
.
18. 8 The East African Community
Gazette No. 24 of 2011
Exemptions from import duty
The list of items exempt from import duty under the fifth schedule of the East African Community Customs
Management Act has been expanded to include;
• All goods, including materials, supplies, equipment, machinery and motor vehicles for the official use of
Partner States Armed Forces and police,
• Apron buses which are essentially used in Airports,
• Tsetse fly traps,
• Security equipment including hand held metal detectors, walk through metal detectors, CCTV cameras,
bomb detectors and under carriage mirrors,
• Battery operated vehicles for use in hotels, hospitals and airports.
By implication, the above items are also exempt from VAT at importation. The VAT Act exempts VAT at
importation of all those items that are exempt from import duty.
Duty remission schemes
Duty remission schemes provide a temporary reprieve from import duty of goods imported by
manufacturers in the East African Community for the manufacture of either goods for export or specified
goods for home consumption.
19. Items destined for Uganda which will benefit from a temporary reprieve from import duty are;
Road Tractors for semi trailers 0% rate of import duty for 1 year
Motor Vehicles for transport of goods with gross 0% rate of import duty for 1 year
vehicle weight exceeding 5 tones but not exceeding
20 tones
Motor Vehicles for transport of goods with gross 0% rate of import duty for 1 year
vehicle weight exceeding 20 tones
Hard Wheat (Wheat grain) 0% rate of import duty for 1 year
Hoes 0% rate of import duty for 1 year
Premixes used in the manufacture of animal and 0% rate of import duty
poultry feeds
Motorcycles ambulances with reciprocating internal 0% rate of import duty
combustion piston engine of a cylinder capacity not
exceeding 50 cc
Cathodes and selection of cathodes 0% rate of import duty for 1 year
Duplex boards 0% rate of import duty for 1 year
Inputs for the manufacture of solar panels 0% rate of import duty for 1 year
Component parts and inputs for assemblers of 0% rate of import duty for 1 year
refrigerators and freezers
Food supplements 0% rate of import duty for 1 year