DOMESTIC TAX LAWS OF UGANDA - ura.go.ug

1 DOMESTIC TAX LAWSOF UGANDATASLAF Advocates & ConsultantsPlot 1, Wampewo Close, Kololo+256(0)392 081 345 O. OkujaAnUpdated andTracked Compendium containing areproduction, with amendments, of theIncome TaxAct, the Value Added Tax Act, the Excise Duty Act, theTax Procedures Code Act,andthe Lotteries and alsocontains Subsidiary Legislation andPracticeNotes,Extracts from Finance Acts, StampDuty ratesand the Exemptions Schedule under the East AfricanCommunity Customs Management Act. 2017 EDITIOND omestic Tax LawsUgandaiWhile making reference to this compendium, the following adaptationsand general principles should be noted:Tax laws are structured into Parts, Sections and Schedules. Parts distinguish the categoriesof information for ease of reference.

2 Each Part deals with a specific subject area andprescribes the rules or principles affecting the subject area. Sections have headings whichdescribe the subject matter dealt with in the Section, and are further divided intosubsections for purposes oforganisinginformation in the section. Subsections may befurther divided in paragraphs; and paragraphs into sub-paragraphs. Schedules provide forrates of tax and detailed descriptions of the subject matter under the different Parts enactment, passing or making of a law, and its operation or commencement are twodifferent things. An enactment becomes law on the day it receives assent of the , a law only begins to operate from the date of its commencementwhich isnormally provided within the law itself.

3 In the absence of any commencement provision, anAct comes into operation on the date of its assent. As a general rule, all provisions areconsidered to be prospective from the date of commencement, exceptwhen maderetrospective by express words in the law or by necessary intention. In case of anyambiguity, a provision should be construed as being prospective. Retrospective operationshould not be given to a law if it takes away or impairs an existing right, or creates a newobligation, or imposes a new liability. The only exception to this general rule would be formatters of Amendment Acts relied on for insertions, additions, substitutions or repeals in thisreproduction are indicated as side notes against affected provisions.

4 An Amendment Act ofany year normally has a commencement and effective date of 1st July of that year ( thefirst day of the financial year), unless stated this compendium, substitutions or insertions of words within original provisions areindicated in italicised font. Substitutions replacing or substantially altering the wording ofexisting ororiginal provisions or sections are indicated in normal font, but with side notesfor the Amendment Act relied on. Insertions of new provisions are also indicated in normalfont. Repealed substantive provisions, words or termshavenot deleted but indicated infaded font,while repealed procedural provisions have beendeleted. This is becauseamended or repealedsubstantive provisions are still relevant for application to tax periodsprior to the amendment or affecting procedurecan be appliedretrospectively to obligations that arestilloutstanding at the time the amendment takeseffect, unless the circumstances of the obligation prevent, by implication, its a general application rule, all amendment Acts are considered to be prospective exceptwhen made retrospective by express words or by necessary , itisimportant to note that the application ofan amendment toan eventor transactionwhich iscontinuing and not complete whenanew provision comes into forcedoes not amount togivinga retrospective operationto the lawif.

5 It taxesthat ongoing or continuing event free to contact meif and when you encounter challenges in using this laws are among the most dynamic pieces of legislation because they areamended almost every year to serve various economic and social goals of thegovernment. This necessitates that the laws are regularly updated with thevarious amendments for ease ofreference. This compendium contains an up-to-date reproduction of the Income Tax Act, Cap 340, the Value Added TaxAct, Cap 349, the Excise Duty Act 2014, and the Tax Procedure Code Act,2014. It also includes subsidiary legislation and practice notes under differentthe tax laws . In updating this version, the Reprint of the Income Tax Actand the Value Added Tax Act as at 19thOctober 2012,by the UgandaLaw Reform Commission was used as an authentic reference for conformity.

6 And all the amendments tothe principal Acts and Regulations have beenincorporated to compilation is the personal effort of the isneitherprepared by Order of the Government of UGANDA nor does it purport, ifprinted, to have been printed by the Government Printer or by or under theauthority of the Attorney General or Parliament, and cannot therefore, underany circumstances, be a substitute for a Publication by the Government great care has been taken to ensure that this reproduction isfree of errors of omission or commission, it is my humble request that younotify the undersigned in the event that you encounter any errors whilemaking reference to this person, who relies on this compendium for any purposes including legalproceedings, is responsible for ensuring its accuracy, novelty andcompleteness by conducting an independent verification with the PrincipalLaws of UGANDA as enacted by Parliament and/or published by the UgandaLaw Reform Commission.

7 Neither the Government of UGANDA nor theUndersigned shall be held liable for any misrepresentations arising out of GOD AND MY COUNTRYJ oseph O. OkujaTASLAF ADVOCATES & CONSULTANTST|+256 (0) 750 333 800 | (0) 776 440 120E Tax TAX ACT | Cap 340 laws of UgandaAn Act to consolidate and amend the law relating to income tax and forother connected :1stJuly 1997 Arrangement of SectionsPART I of the II IMPOSITION OF tax tax imposedRates of of tax of income tax for of income tax for trustees and retirement fundsPART III RESIDENTS AND retirement personPART IV CHARGEABLE income arising from insurance incomeIncome Tax incomeExempt of deriving , refreshment andentertainment and minor capital of intangible research exploration of forward lossesPART V TAX ACCOUNTING year of of of obligations with discount or currency debt gains and lossesIncome Tax VI GAINS AND LOSSES ON DISPOSAL OF of Part and losses on disposal of rules for consideration recognition of gain or lossPART VII DETERMINING CHARGEABLE of joint methods of allocating costs and and of doctrine of expenditurePART VIII PERSONS ASSESSABLET axation of of splittingTaxation of Partner ships and of taxation of of partnership income or of.

8 Reconstitution or dissolution of a base of partner s interestTaxation of Trusts and Beneficiarie relating to taxation of trusts and of taxation for of trustees and of estates of deceased personsIncome Tax of Companie s and of taxation for in control of reliefPART IX INTERNATIONAL of Part of employment tax of branch on international public entertainers orsports on payments to non-resident contractors or in shipping, air transport, or telecom provisions on taxes imposed under Sections 83, 84, 85, & capitalisationPARTIXA TAXATION OF PETROLEUM of mining of deductions relating to mining exploration extraction expenditurePetroleum of petroleum of deductions relating to petroleum exploration development expenditureIncome Tax applicable to M ining and Petroleum transfers of of accounting of costs and of ring and measurement of of sections 111 to 113 and the Tax Procedures Code forward , objections and and.

9 Definition and allocation of costs and to furnish false or misleading tax and tax ofCommissioner to undertake auditPART X between of income and deductionsPART XI PROCEDURE RELATING TO INCOME of return of where return of income of time to furnish a return of incomeAsse provisions in relation to assessmentsIncome Tax and to to the High Court or a to the Court of of proofCollection and Recovery of date for payment of as a debt due to the Government of of tax from persons leaving UGANDA of tax from persons owingmoney to the of tax by from agent of of on property for unpaid taxProvisional of provisional tax payableRefund of XII PROCEDURE RELATING TO RENTAL taxPART XIII WITHHOLDING OF TAX AT THE of Part of tax by of interest to resident of dividends to resident tax fromprofessional of tax by the purchaser of an for winnings of sports betting and pool betting118D.

10 Withholding Tax on Payments of Re-Insurance for goods and paymentsIncome Tax services as a final of tax tax for transport to withhold credit of payments and tax of tax on assessment andwithholding agent s indemnityPART XIV RECORDS AND INFORMATION and information to books, records and to obtain information or and records not in the English languageTax Clearance clearance certificateTax Identification identification numberPART XV OFFENCES AND on unpaid taxOffence s and Penaltie to furnish a to comply withrecovery to maintain proper to comply with sections 121, 129, 130, 131, 132 and use of tax identification false or misleading an officer of the by and relating to officersIncome Tax by may appear on behalf of the of charged to be paid notwithstanding prosecutionPenal tax for failure to furnish areturn of tax in relation to tax in relation to false or misleading tax for understating provisional tax of penal taxPART XVI secrecyForms and and notices.