Introduces tax reforms to encourage investment
04 Jul 2024
On 13 June 2024, the Minister of Finance, Planning and Economic Development of Uganda presented the National Budget for the 2024/25 financial year. The Budget includes, inter alia, provisions for the Income Tax (Amendment) Act, 2024. The Amendment introduces several changes with significant implications for investors:
(i) A 5 per cent tax will be imposed on gains from the disposal of non-business assets, to be paid within 15 days after disposal. This reduces the tax rate from the current approximately 30 per cent for certain assets.
(ii) Exemption from tax is provided for gains from the disposal of investment interests in registered venture capital funds or private equity.
(iii) Expansion of exempt income categories for qualifying investments in industrial parks, free zones, and other specified business activities meeting certain investment thresholds.
These amendments aim to attract investment, improve tax compliance, and align Uganda's tax system with international best practices.
The President approved the Budget on 4 July 2024.
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Type:
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Promotion and facilitation (Investment incentives, Special economic zones)
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Industry:
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