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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]
  • Initial allowances on plant and machinery of 50% or 75% depending on the location of the project. This may enable the investors to claim up to 85% of cost of capital (plant and machinery) in the year of investment,
  • 25% annual deduction for start up costs of new projects of a period of four years,
  • 20% initial allowances on Industrial buildings in the first year of investment,
  • No gain no loss provisions in respect of re-organization of resident companies
Tax exemptionsMore [+]Less [-]

Unilateral tax relief is given for foreign tax paid on profits from foreign countries.

There is Exemption from withholding tax on payments by Uganda branches of non- resident companies to their non-resident Head offices (other than repatriated profits).

Regarding import and export based tax incentives:

  • Duty exemption on plant and machinery and other inputs
  • Full and partial remission of excise duty on certain raw material imported for the manufacture of products in Uganda,
  • Duty drawback- refund of all or part of duty paid on materials, inputs, etc imported to manufacture and package goods for export
  • Simplified three import duty - 0% - Where duty is remitted, 4% - 6% - on imports from the COMESA region and 7% - 15% - on imports from outside the COMESA region
  • Ten year tax holiday – duty remission scheme for exporters involved in value addition
  • 100% tax deduction for scientific research expenditure in the year of Investment,
  • 100% tax deduction for mineral exploration and exploitation expenditure,
  • 20% straight line tax deduction for capital costs in respect to horticultural plant and greenhouse for five years,
Property assistance / other fiscal incentive
Training and labor market assistance
Loan guarantees, cheap loans or financeMore [+]Less [-]

The Development banks like Africa Development Bank, East African Development Bank, as well as the World Bank’s Multi Lateral Guarantee Agency, to which Uganda is signatory can be a source of loan guarantees or equity financing.
Exemptions from regulations
Target sectorsMore [+]Less [-]
  1. Agro - processing
  2. Tourism
  3. Information Communication Technology (ICT)
Sectors specific incentivesMore [+]Less [-]
  • In the Tourism sector the importation of hotel equipment and tourism specific vehicles is import duty free.
  • Manufacturers of agricultural equipment benefit from exemption of duty on the import of Inputs for use in manufacturing
  • In the education sector, import of educational articles and materials is duty free. The business income derived by a person from managing an educational institution is exempt from income tax.
  • In the health sector, all items imported for use in licensed hospitals are import tax free.
  • In order to boost the ICT sector, importation of computer software, supply of computers and their accessories, is tax free
  • Interest earned by a financial institution on a loan granted to any person for the purpose of agricultural operations is exempt from income tax. The supply of financial services is exempt from VAT.
  • Export oriented Investments engaged in the value addition of Uganda’s

Sponsorship

If you are the authorised promotions agency for Uganda and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.