LEX Africa's 'Guide to Doing Business'

Income Tax Rate
Resident and Non Resident Companies 30%
Branch tax 30%
Branch profit remittance tax 15%
Capital gains tax 30%
Mining Companies 25-45%.
Taxation of Partnerships
The profits of a partnership or firm carrying on a trade or
profession are taxable.
Taxation of Sole Proprietorships
A sole proprietor is taxed in the same way as an individual.
Taxation of Trusts
The income tax rate applicable to trusts is 30% of the chargeable
trust income for the year of income. A trust is exempt from
income tax where income of the trust is paid directly to the
beneficiary.
Value Added Tax (VAT)
VAT is payable by individuals and firms. The business sales turnover
threshold for VAT is Ushs 50 000 000 (approx US$ 28 000) per year or
Ushs 12 500 000 (approx. US$ 5 700) per three consecutive months,
regardless of whether the business is profitable. VAT registration for
individuals and firms with business sales turnover of above the Ushs
50 000 000 or 12 500 000 VAT threshold must register with URA for
VAT.
Stamp Duty
Stamp duty is an indirect tax levied on a number of legal
documents and certain agreements.
Taxation of Rental Income
An individual's rental income is taxed separately from other
income at a rate of 20% of gross rental income in excess of Shs. 2
820 000 per year.
Withholding Tax
Dividends and interest payments are subject to a withholding tax
of 15% for both residents and non-residents. However interest
paid abroad by a resident in respect of debentures issued by a
foreign company for the purposes of raising loan capital to carry
on business in Uganda is exempt. Any payment to a person in
Uganda from the government of Uganda, a government
institution, a local authority, any company controlled by the
government or any person designated in a notice issued by the
Minister for Finance of an amount in aggregate exceeding one
million shillings for the supply of goods or materials of any kind
or any service is subject to a 6% withholding tax. The Minister for
Finance has powers to exempt companies from paying
withholding tax.
billion barrels. 100 000 barrels of oil have been produced
daily for over 20 years. This also provides opportunities for
all ancillary industries
Floriculture gives one of the highest returns on investment in
agriculture (30-40%) but requires high investment
Uganda has many high mineral potential areas which are
inadequately explored. Minerals such as limestone, gold, tin,
tungsten are available for mining
Fish farming is one of Uganda's leading foreign exchange
earners. Opportunities include the processing of canned
fish, aquaculture, and fish leather processing
A number of investment opportunities exist in the textile
sector. These include growing of cotton for export,
establishment of ginneries and the supply of inputs to
farmers and production of edible oil from cotton
Given the rate at which the Ugandan population is increasing
there is need for affordable housing. Opportunities are
therefore available in the building and construction industry
including low cost housing in urban and semi-urban areas,
other housing and mortgage finance, and the provision of
construction equipment and building materials
In the foods and beverages sector opportunities are
available mainly in utilization of local agricultural raw
materials to manufacture agro-processed products with
higher export potential. Additional opportunities exist for
support industries to the sector for example in packaging
value added processing and cold storage at export points
There are opportunities in the education sector especially at
post primary level. These include secondary education,
technical and vocational education, development of
computer skills and managerial skills training
Opportunities in the tourism sector include tour operations,
water sports and related activities, accommodation,
conferences and incentives travel, national park
concessions, privatisation and joint ventures with existing
players
There is enormous potential in the following financial
services areas: merchant banking, development banking,
commercial banking, insurance services, leasing, mortgage
financing, building societies, micro-financing services, and
specialized training institutions.
Intellectual Property
Protection of patents, certain trademarks, design and copyright
is provided for by statute.
Trademark Applications Requirements
A signed power of attorney
Ten prints of the trademark
The list of goods to be covered by the application.
Full name(s), trading style, legal status, and description and
street address of the applicant.
In addition non-residents are liable for a 15% withholding tax on
royalties, management fees, payments for natural resources and
rental on equipment earned in Uganda.
Key Industry Sectors
The following is an outline of investment opportunities in some
of the key areas:
Uganda has a burgeoning oil sector. The first deposit was
found in 2006 and since then 32 wells have been established
in the Lake Albertine Graben. Large natural gas deposits have
also been found. The total proven oil reserves are well over 6
Patent Applications
A signed power of attorney
A signed application form
Specification, claims, abstracts and drawings, if any
A deed of assignment if the inventor is not the applicant
The priority document if priority is to be
claimed.
Uganda has signed the following intellectual
property treaties:
The Paris Convention for the protection
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