Uganda’s Foreign Direct Investment (FDI) inflows
Have consistently increased in spite of the COVID-
19 pandemic, from US$807.00 million in 2019 to US$ 927.10 million in 2020 largely due to its stable and consistent macro-economic policies, liberalized business environment, proximity as a logistics hub within the Great Lakes region and increased regional trade.
Most FDI into Uganda has been directed towards mining & quarrying, manufacturing, agriculture, construction, finance, insurance, real estate and business services. The Government has continued to promote foreign investment through the Uganda Investment Authority, the Presidential Investors Round Table and by minimizing macroeconomic policy shifts, which make doing business in Uganda more predictable than in neighboring countries. Uganda has a friendly investment policy framework aimed at attracting investments in the various
Afore mentioned sectors. One of these policies is the provision of tax incentives to investors. Country’s tax laws making them nondiscriminatory and accessible to both domestic and foreign investment depending on the sector and level of investment. It is assumed that this tax incentive regime will spur investments within the economy and in so doing contribute to the achievement of Uganda’s Vision 2040 whose aspirations are to transform Uganda from a predominantly low- income country to an upper middle- income country within 30 years.
Realizing that knowledge of the existing tax incentives by prospective local and foreign investors encourages many to take advantage of these incentives and invest in the country; Uganda Revenue Authority is pleased to introduce this Tax Incentives Guide for Investors in Uganda.
This Guide is a consolidation of all the tax incentives under International Trade (Customs) and Domestic Taxes. This Guide will be updated annually in line with Government’s fiscal policies and will be available at the One Stop Centre of the Uganda Investment Authority. For further inquiries, investors are encouraged to contact the Assistant Commissioner Trade, Customs Department and the Assistant Commissioner Business Policy, Domestic Taxes Department.
Developing Uganda Together.
John R Musinguzi Commissioner General Uganda Revenue Authority
3
Tax incentives and non- tax incentives are available to both foreign and local investors. The benefit for local investors is that they can access the tax incentives with a lower minimum capital requirement. Local and foreign investors can equally access non- tax incentives like land in the industrial parks, facilitation for infrastructure needs and policy advocacy for conducive environment.
| INCOME TAX |
| Beneficiary | Incentives | Period of Incentive | Conditions for the Tax Incentive |
| Developer of an industrial park/free zone | Exemption of income derived from renting out or leasing facilities established in an Industrial park or free zone. | 10 years | Must invest a minimum of USD 50m for foreign investors or USD 10m for EAC citizens, Incentive takes effect from the date of commencement of construction. Also applies to an existing investor making an additional investment of the same value. |
| Operator in an Industrial Park or Free Zone who invests in processing agricultural products; manufacturing or assembling medical appliances, medical sundries or pharmaceuticals, building materials, automobiles and house hold appliances; manufacturing furniture, pulp, paper, printing and publishing of instructional materials; manufacturing chemicals for agricultural use, industrial use, textiles, glassware, leather products, industrial machinery, electrical equipment, sanitary pads and diapers; establishing or operating vocational or technical institutes; or carrying on business in logistics and warehousing, information technology or commercial farming or manufacture of tyres, foot ware, mattresses or tooth paste; manufactures chemicals for agricultural use, industrial use, textiles, glassware, leather products, industrial machinery, electrical equipment, sanitary pads and for diapers | Income derived by a person from undertaking any of the listed business activities in the Industrial Park or Free Zone. | 10 years | Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives applies to an existing operator in an Industrial Park or Free Zone. The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
| Investor outside an industrial park or Free zone carrying out activities as in 2 above. | Income derived by a person from undertaking any of the specified business activities. | 10 years | Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives applies to an existing operator in an Industrial Park or Free Zone. The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
| Exporters of finished consumer and capital goods. | Income derived from the exportation of finished consumer and capital goods. | 10 years | Exemption valid from the beginning of the investment. Investor must export at least 80% of production. Investor must apply for and be issued with a certificate of exemption. |
| Collective Investment Schemes to the extent of distribution | Income tax exemption for Collective Investment Schemes | Indefinite | Must be licensed to operate as a collective investment scheme. Participants in the scheme should not have day to day control over the management of the property. Participants contributions and ultimate income/ profits must be pooled Property must be managed as a whole by the operator of the scheme |
| Mining and petroleum operators | Special income tax deductions allowed and exemptions: Carry forward losses, 100% depreciation rate for depreciable assets acquired for mining exploration, deduction for contribution made by a licensee to a rehabilitation fund in accordance with an approved rehabilitation on amounts withdrawn from a rehabilitation fund to meet expenditure incurred under an approved rehabilitation plan, 10% withholding tax on | Indefinite | Mining and petroleum operators |
| payments made to sub- contractors as a final tax as opposed to 15%, deduction of social infrastructure costs incurred in accordance with the mining lease. | |||
| Aircraft Operators | Income Tax exemption for Aircraft Operators | Indefinite | Applies to persons engaged in air transport for domestic and international traffic or aircraft leasing. |
| . Private employers of persons with disabilities (PWDs) | Deduction of 2% Income tax for employers that employ PWDs | Indefinite | 5% of employees must be PWDs |
| . Non- profit making Organizations | Income tax exemption | Indefinite | Where the Commissioner has issued a written ruling stating that it is exempt |
| Compliant taxpayers | 6% WHT exemption on payment for goods and services and professional fees | 12 months renewable | Where the Commissioner is satisfied that the taxpayer has regularly complied with the obligations under the tax laws |
| . All taxpayers | 100% deduction of Scientific research expenditure | Indefinite | A person who incurs expenditure for scientific research |
| All taxpayers | 100% deduction of training expenditure | Indefinite | Employers who train permanent residents or provide tertiary education not exceeding in the aggregate 5 years |
| . All taxpayers | Initial allowance and Depreciation allowance: Initial Allowance – capital deduction of 50% of qualifying Plant & machinery and 20% on Industrial building placed in the radius of 50Km outside the boundaries of Kampala. Person who places depreciable assets in service e.g. computers, automobiles, specialized trucks, tractors, plant and machinery used in farming, manufacturing or mining operations, trailers and trailer mounted containers; and Industrial building deduction of 5% on cost of Construction straight line method for 20 years. | Indefinite | All taxpayers with depreciable assets |
| All taxpayers | Carry forward losses: Assessed loss is carried forward as a deduction in the following year of income. | Duration of the loss | All taxpayers |
| Investor established in a country with which Uganda has a DTA | Double Taxation Agreements (DTA): Investors from countries with active DTA’s with Uganda i.e. United Kingdom, Denmark, Norway, South Africa, India, Italy, Netherlands and Mauritius. Withholding tax rates applicable to dividends, interests, management fees and royalties are 10% except UK at 15% | Duration of the DTA | Beneficial owner of investment as defined in the Income Tax Act established with economic substance in a country with which Uganda Has a DTA. |
| Foreign transporters | Exemption of income derived from transportation of passengers or goods or mail embarked outside Uganda | Indefinite | Transportation of passengers or goods or mail must have embarked outside Uganda |
| VAT ACT |
| Beneficiary | Incentives | Period of Incentive | Conditions for the Tax incentive |
| Developer of an industrial park or free zone | No VAT on any payment for feasibility studies, design construction services, construction materials and earth moving Equipment and machinery. | Duration of the development | The investment must be at least USD 50m. The development must be for an industrial park or free zone. |
| Investment in processing agricultural products; manufacturing or assembling medical appliances, medical sundries or pharmaceuticals, building materials, automobiles and house hold appliances; manufacturing furniture, pulp, paper, printing and publishing of instructional materials; establishing or operating vocational or technical institutes; or carrying on business in logistics and warehousing, | No VAT on the supply of feasibility study and design services and on the supply of locally produced raw materials and inputs. | Indefinite | Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives applies to an existing operator in an Industrial Park or Free Zone. |
| information technology or commercial farming; manufactures tyres, footwear, mattresses or toothpaste; manufactures chemicals for agricultural and industrial use, textiles, glassware, leather products, industrial machinery and electrical equipment, sanitary pads and diapers. | The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. | ||
| The supply of services to a manufacturer other than the manufacturer above. | No VAT on the supply of feasibility study or to undertake design and construction | Indefinite | Must invest a minimum of USD 30m for foreign investors and USD 5 m for a local investor. In case of any other manufacturer from the date on which the manufacturer makes an additional Investment equivalent to USD 30m for a foreign investor or USD 5 m for a local investor. The investor must use at least 70% of locally sourced raw materials subject to their availability, capacity to employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
| Developer of a hotel or tourism facility | No VAT on the supply of feasibility study, design and construction services; or on the supply of locally produced materials | No VAT on the supply of feasibility study, design and construction services; or on the supply of locally produced materials | The hotel developer must invest at least USD 8m. The feasibility studies must be for the development of a hotel or tourism facility or the supply of machinery and equipment furnishings or fittings (not available on the market). The hotel or tourism facility must have a room capacity exceeding 30 guests. A developer of a facility for meetings, conferences and exhibitions whose investment capital is not less than one Million United States Dollars. |
| Developer of a hospital facility | No VAT on supply of feasibility study, design and construction services; or the supply of locally produced materials; or the supply of machinery and equipment or furnishings and fittings | • Duration of the development | Must invest at least USD 5 million. The feasibility study must be for the development of a hospital facility; or the construction of hospital premises and other infrastructure; or supply of the machinery, equipment, furnishings and fittings for use in the hospital facility. The hospital should have the capacity to provide specialized medical care. |
| Agriculture | VAT Exemption on agricultural supplies: animal feeds and premixes, crop extension services, irrigation works and sprinklers, supply of agriculture insurance, etc. VAT Exemption on liquified gas and denatured fuel ethanol from cassava Indefinite | • Duration of the development Indefinite | Taxpayers in agricultural sector. |
| VAT Registered taxpayers | VAT registered persons claim all the VAT incurred. | Indefinite | Turnover of UGX 150m in any 12-month period for first time registration, ability to keep proper books of accounts and making taxable supplies |
| Contractors to licensees undertaking mining/ petroleum operations | Deemed VAT: Tax payable on supply by a contractor to a licensee undertaking mining or petroleum operations is deemed to have been paid by the licensee to the contractor provided the supply is for use by the licensee solely and exclusively for mining or petroleum operations | Duration of the investment | Contractors to licensees undertaking mining/ petroleum operations |
| Contractors executing aid- funded projects | Deemed VAT: Tax payable on a tax able supply made by a supplier to a contractor executing an aid- funded project is deemed to have been paid by the contractor provided the supply is for use by the contractor solely and exclusively for the aid funded project. | Duration of the project | Contractors executing aid- funded projects |
| Contractor or licensee or a person providing business process outsourcing services. | Input tax credit on imported services. | Indefinite | Persons providing services to the licensees in mining operations or licensees in petroleum operations. Persons granted mining rights or with whom the Government has entered into a petroleum agreement. Persons providing business process outsourcing services. |
| Energy industry | Supply of any goods and services to contractors and subcontractors of hydroelectric power, solar power, geothermal Power, or bio gas and wind energy projects is exempt from VAT. | Indefinite | Energy industry |
| 12.Insurance Industry | Life, medical, micro, aircraft and reinsurance services is exempt from VAT. | Indefinite | Insurance services |
| 13.Manufacturers of medicines | The supply of drugs, medicines and medical sundries manufactured in Uganda are zero- rated | Indefinite | Manufactured in Uganda |
| 14.Importers of medicines | VAT exemption at importation | Indefinite | Imported |
| Exporters | Zero rating | Indefinite | All exporters |
| Aviation industry | Zero rating of supply of leased aircraft, aircraft engines, spare parts for aircraft, aircraft maintenance equipment and repair services | Indefinite | Aviation industry |
| Suppliers to government | Cash basis accounting for VAT on supplies made to government | Indefinite | VAT registered suppliers |
| Suppliers of oxygen for medical use | Exempting the supply of oxygen | Indefinite | Oxygen for medical use |
| Suppliers of assistive devices for persons with disability. | Exempting the supply of assistive devices for persons with disability. | Indefinite | Assistive devices must be for use by persons with disability |
| Aircraft operators | Exempting airport user service charges. | Indefinite | For services charged by the Civil Aviation Authority |
| Suppliers of educational materials | Zero rating of supply of educational materials. | Indefinite | Includes educational materials manufactured in Uganda and the partner states of the EAC |
| Suppliers and manufacturers of menstrual cups | Zero rating the supply of menstrual cups and inputs for their manufacture | Indefinite | Suppliers and manufacturers of menstrual cups |
| STAMP DUTY ACT |
| Beneficiary | Incentives | Period of Incentive | Tax incentive |
| Developer of an industrial park/free zone | No Stamp duty on debentures, lease of land, Increase of share capital, transfer of land. | Duration of development | Must invest a minimum of USD 50m and incentive takes effect from the date of commencement of construction. |
| Manufacturers | Nil stamp duty on execution of the following documents; i) debenture; whether a mortgage debenture or not, being of a marketable security – of total value; ii) further charge; any instrument imposing a further charge on a mortgaged property –of total value; iii) lease of land – of total value; iv) increase of share capital; v) transfer of land; vi) an agreement to provide services on conducting a feasibility study or developing a design for construction | Duration of development | Must invest a minimum of USD 35m |
| Operator within an industrial park or free zone or an operator of a single factory or other business outside the industrial park who invests in agro processing, food processing, medical appliances, building materials, light industry, automobile manufacturing and assembly, household appliances, furniture, logistics and warehousing, information technology or commercial farming, operating vocational or technical institutes. | No Stamp duty on debentures, lease of land, Increase of share capital, transfer of land. | Duration of activity | Must invest a minimum of USD 10m for foreign investors and USD 300,000 for EAC citizens or USD 150,000 where the investment is made upcountry. Incentive takes effect from the date of commencement of the specified business, same incentives applies to an existing operator in an Industrial Park or Free Zone. The investor must use at least 70% of locally sourced raw materials and employ at least 70% EAC citizens who must take up at least 70% of the wage bill. |
| Hotel or tourism developer | Nil Stamp Duty on debenture, further charge, lease of land, increase of share capital, transfer of land and agreement to provide services on conducting a feasibility study or developing a design for construction. | Duration of the development | Must invest at least USD 8m. Hotel or tourism facility should have room capacity exceeding one hundred guests |
| Hospital facility developer | Nil Stamp Duty on debenture, further charge, lease of land, increase of share capital, transfer of land and agreement to provide services on conducting a feasibility study or developing a design for construction | Duration of the development | a. Must invest at least USD 5m. b. Develop a hospital at the level of a national referral hospital with capacity to provide specialized medical care |
| Strategic investments (specified in Item 60 A (iii) of the Second Schedule of the Stamp Duty Act) | Nil stamp duty | Indefinite | Investor must have a. Capacity to use at least 50% of the locally produced raw materials, subject to availability b. Have capacity to use 50% of raw materials sourced locally and; c. Be able to employ a minimum of 100 citizens |
| Loan applicants/credit offering institutions | NIL stamp duty on an agreement relating to the deposit of title-deeds, pawn pledge-of the total value. | Indefinite | Agreement relating to the deposit of title-deeds, pawn pledge-of the total value. |
| Loan applicants/credit offering institutions | NIL stamp duty on security bond or mortgage deed. | Indefinite | Security bond or mortgage deed executed by way of security for the due execution of an office, or to account for money or other property received by virtue of security bond or mortgage deed executed by a surety to secure a loan or credit facility- of entry value. |
| Agricultural insurance policies | NIL stamp duty on agricultural insurance policies | Indefinite | Agricultural insurance policies |
| AGRICULTURAL SECTOR |
 | Hoes A hoe is a long-handled garden-ing tool with a thin metal blade, used mainly for weeding and breaking up soil. | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Ploughs, Harrows, seeders, planters and translators, manure spreaders and fertilizer distributors | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Agricultural sprayers | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Fertilizers A fertilizer is any material of natural or synthetic origin (other than liming materials) that is applied to soils or to plant tissues (usually leaves) to supply one or more plant nutrients essential to the growth of plants | • Exempted from all taxes under the 5th Schedule of the East African • Community Customs Management • Act, 2004 upon approval by the Ministry of Agriculture, Animal Industry and Fisheries. |
 | Refrigerated Trucks | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
 | Agricultural chemicals (fungicides and pesticides) | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Veterinary Chemicals (Acaricides) | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Agricultural Tractors | • VAT Exempted when imported by dealers Under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Aluminum Cans for the dairy industry | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
 | Imported inputs and implements by persons engaged in horticulture, agriculture or floriculture and aquaculture sector e.g. hatching eggs, day old chicks, semen, fish eggs, Fry/ fingerling (young fish), seeds, green houses/ materials used in construction of green houses, flower cuttings, incubators, hatcheries etc. | Imported inputs and implements by persons engaged in horticulture, agriculture or floriculture and aquaculture sector e.g. hatching eggs, day old chicks, semen, fish eggs, Fry/ fingerling (young fish), seeds, green houses/ materials used in construction of green houses, flower cuttings, incubators, hatcheries etc. |
 | Cold Rooms A cold room in which a low temperature is maintained (as for refrigeration) | • Import Duty is 0% in accordance with the EAC CET. Helps on post-harvest management and cold chain storage of agricultural products such beef, chicken, fish etc |
 | Poultry parent stock imported by persons engaged in poultry farming. A broiler and layer breeder farms raise parent stock which produce fertilized eggs. A broiler/layer hatching egg is never sold in shops and is not meant for human consumption but for hatching into day old chicks. | • VAT Exempted when imported by dealers under the VAT Act. • Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004 |
 | Seeds for sowing, spores and cut plants A seed is an embryonic plant enclosed in a protective outer covering. | • Exempted from all taxes under fifth schedule of the East African Community Customs Management Act, 2004 upon approval by Ministry of Agriculture Animal Industry and Fisheries. |
 | Breeding animals Breeding stock is a group of animals used for the purpose of planned breeding. | • VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Preparations for cleaning Diary apparatus Example PFANZITE POWDER DAIRY DETERGENT. Pfanzite is a highly chlorinated, powdered manual cleaner designed especially for cleaning bulk tanks, the Surge bucket milker and utensils. | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
 | Fish, Crustaceans and Molluscs, fresh (dead or live) chilled or frozen caught and landed by canoes or vessels registered and based in a Partner State | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
 | Feeds for Poultry and Livestock Poultry Feed is food for farm poultry, including chickens, ducks, geese and other domestic birds. Modern feeds for poultry consist largely of grain, protein supplements such as soybean oil, meal, mineral supplements, and vitamin supplements | • VAT Exempted when imported by dealers under the VAT Act. Exempted from all taxes when imported by persons engaged in agriculture under the 5th Schedule of the East African Community Customs Management Act, 2004. |
 | Machinery for processing dairy products | • VAT Exempted when imported by dealers Under the VAT Act. • Import duty is 0%, under East African Community Common External Tariff VAT Exempted. |
 | Packing material of any kind designed for packaging goods for export | • Exempted from all taxes when imported with an intention of packaging goods meant for export. |
 | The supply of irrigation works, sprinklers and ready to use drip lines | VAT Exempted when imported by dealers under the VAT ACT. Exempted from all taxes when imported by persons engaged in agriculture under the 5th schedule of the East African Community Customs Management Act, 2004 |
| Description | Tax incentive | |
 | Raw materials used in production of goods meant for export. | • Duty draw back i.e. customs refunds of all or part of any import duty paid on material inputs imported to produce goods for export or used in a manner for a purpose prescribed as condition for granting duty draw back. |
 | Plant, machinery, equipment and raw materials used in production of goods for export. | • Manufacturing under bond facility. A facility extended to manufacturers to import plant, machinery, equipment and raw materials tax free, for exclusive use in the manufacture of goods for export. |
 | White refined sugar for Industrial use. The industrial sugars category includes sweeteners that service food and confectionary manufacturers, as well as the catering, baking, pharmaceutical and beverage industries | • Duty remission to 10% on imported white refined industrial sugar for industrial use. |
 | Paper for use in the manufacture of exercise books and textbooks. An exercise book or composition book is a notebook that is used in schools to copy down school work and notes. | • Imported at import duty rate of 0% under duty remission scheme for one year. |
 | Stranded wire used in Manufacture of tyres. A stranded wire as opposed to solid wire is a composite of a bundle of small gauge wires Wrapped in a particular pattern inside insulation to make a larger conductor. | • Duty remission at 0% for manufacturers of motor vehicle tyres for one year. |
 | Treads for cold retreading used in retreading of tyres. The tread of a tyre or track refers to the rubber on its circumference that contacts the road or the ground. Retread, also known as “recap,” or a “remold” is a Re-manufacturing process for tyres that replace the tread on worn tyres. | • Duty remission to 0% for • manufacturers of motor vehicle tyres under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Raw materials for manufacture of aluminum cans for the dairy industry. Aluminum can is a bucket, pail, or other container made of aluminum that is used for holding or carrying liquid, food, beverage etc. | • Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (Complete Knocked Down) motor cycle kits imported by approved local assemblers of motor cycles. | • Imported at import duty rate of 10% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (Complete Knocked Down) bicycle kits imported by approved local assemblers of bicycles. | • Imported at import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Raw materials and inputs used in the assembly of transformers and switch gear. | • Imported at import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Raw materials for manufacture of sanitary towels and tampons | • Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs used for the production of solar panels | • Remission of import duty rate 0% under duty remission of scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Component parts and inputs for the assemblers of refrigerators and freezers. | • Remission of import duty rate of 10% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs and raw materials to use in the manufacture of food supplements for infants and nutrient deficient persons | • Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Scrap batteries for manufacture of lead batteries | • Remission of import duty rate of 0% under duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs used in the production of gas cylinders imported by manufacturers of such cylinders | • Duty remission to 0%under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for the manufacture of dry cell batteries. | • Duty remission to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for manufacture of matches and match boxes. | • Duty remission to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for the manufacture of deep cycle batteries | • Duty remission to 0%under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Materials for manufacture of mosquito nets | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004. |
 | Inputs for use in the manufacture of medical diagnostic kits imported by manufacturers of medical diagnostic kits as approved by a Director medical services | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004. |
 | Packing materials and raw materials for the manufacture of medicaments | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004. |
 | Iron and steel products for manufacture of automobile leaf springs, bolts and nuts | • Duty remission on inputs to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Trigger spray and lotion pumps for the manufacture of cosmetic containers | • Duty remission on inputs to 0% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Noodles for the manufacture of toilet soap | • Duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Umbrella heads for roofing nails | • Import duty remitted from 25% to 10% for the manufacture of roofing nails. |
 | Glucose Syrup | • Import duty is applicable at a rate of 0% for one year. |
 | Odiferous mixtures of a kind used as raw materials in food and drink industries | • Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for the manufacture of toothbrushes | • Granted duty remission at 0% on inputs for the manufacture of tooth brushes under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Nylon yarns for the manufacture of fishing nets. | Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs imported by a manufacturer for the use in the manufacture of agricultural equipment. | • Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs used in the manufacture of pesticides, fungicides, insecticides and acaricides as approved by the Ministry of Agriculture | • Granted duty remission at 0% on inputs used in the manufacture of pesticides, fungicides, insecticides and acaricides as approved by the Ministry of Agriculture. |
 | Inputs used in the manufacture of energy stoves. | • Granted duty remission at 0% on inputs used in the manufacture of energy saving stoves. |
 | Roofing tiles coated with acrylic paint and the weather side coated with natural sand granules | • Inputs for the manufacture of roofing tiles to be imported at a duty rate of 0% for one year. • Inputs for the manufacture Roofing tiles coated with acrylic paint and the weather side coated with natural sand granules to be imported at a duty of 0% for one year. |
 | Jacquard material for making spring mattresses (printed with Logo) | • Import duty applicable at a rate of 10% for one year instead of 25%. |
 | Weave fabrics of polyester staple fibre Woven Grey Fabric of higher (finer) yarn counts for wet. | • Import duty applicable at a rate of 10% instead of 25% for one year. |
 | Poly Cotton Material for making mattresses | • Import duty applicable at a rate of 10% for one year. To support the textile sector by increasing availability of these materials. |
 | Catalytic preparations for the manufacture of foam and spring mattresses | • Granted remission of duty from 10% to apply a duty rate of 0% for one year for the manufacture of foam and spring mattresses. |
 | Other springs and leaves for the manufacture of foam and spring mattresses | • Granted remission of duty from 25% to 10% for one year for the manufacturers of foam and spring mattresses |
 | Poly Vinyl Alcohol | • Import duty applicable at a rate of 0% instead of 10%. |
 | Wheat Grain | • Import duty is applicable at a rate of 10% instead of 35% for one year. |
 | Barley | • Import duty is applicable at a rate of 10% instead of 25% for one year |
 | Aerosol cans | • Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Organic surface-active agents (Anionic) (LABSA) | • Duty remission to 0% instead of 10% for one year for manufacturers of detergents and liquid soaps under the duty remission scheme, in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Organic surface-active agents (Cationic) | • Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Textile garments coated with gum for direct use in the manufacture of books | • Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Duplex boards | • Duty remission to 0% instead of 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for assembly of ships | • Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Inputs for assemblers of equipment specially designed for use by disabled, blind and physically handicapped persons | • Duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
| Inputs for manufacture of filters | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. | |
 | Grouts and meal of wheat | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled speakers (CKD) inputs for assembly of speakers | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (CKD) hot water kettles- inputs for assembly of hot water kettles | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (CKD) DVD players – inputs for assembly of DVD players | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled flat iron (CKD)- inputs for assembly of flat iron | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (CKD) blenders inputs for assembly of blenders | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled (CKD) LED, CFL bulbs – inputs for assembly of LED & CFL bulb | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled floor, table and wall fans | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Unassembled Cookers | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Listed inputs for the manufacture of furniture | • Granted duty remission rate of 0% and 10% under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Steel Blanks for Spoons and forks | • Granted duty remission rate to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Stranded wire, ropes and cables for the manufacture of toughened and laminated glass | • Granted duty remission rate to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Other plates, sheets, film, foil and strip, of plastics, non- cellular and not reinforced, laminated, supported or similarly combined with other materials. Of poly (vinyl butyral) for the manufacture of Toughened and laminated glass. | • Granted duty remission rate of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Non-wired glass for the manufacture of Toughened and laminated glass | • Granted duty remission of 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non- aqueous medium for the manufacture of decorative aluminium panels | • Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Aluminium plates, sheets and strip of a thickness exceeding 0.2 mm of aluminium alloy for the manufacture of decorative aluminium panels | • Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Listed inputs for the manufacture of baby diapers | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Acrylic polymers for manufacture of paints | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Listed inputs for the manufacture of textiles (garments) | • Granted duty remission to 0% and 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Listed inputs for the manufacture of footwear (shoes) | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Inputs for the manufacture of edible salt of sub-heading 2501.00.00 | • Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Inputs for the assembly/ manufacture of mobile phones | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Parts of chains for assemblers of chains for motorcycles, bicycles and industrial machinery | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Valves and their corresponding component parts used for the manufacture of motorcycle tubes | • Grant Uganda a remission of duty to apply a duty rate of 0% for one year. These are raw materials for manufacture of motorcycle brake shoes. |
  | Brake linings and pads, Brakes and servo-brakes; parts thereof; Other Adhesive Glues | • Grant Uganda a remission of duty to apply a duty rate of 0% for one year. These are raw materials for manufacture of motorcycle brake shoes. |
 | High tensile galvanized wire | • Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Aluminum wire, not alloyed: — Of which the maximum cross- sectional dimension exceeds 7 mm | • Granted a remission of duty from 10% to 0% for one year to only cable manufacturers |
 | Wires of alloyed steel | • Stay of application of the EAC CET rate of 10% and apply a rate of 0% up to 30 June 2023. |
 | Other Zinc coated coils | • Grant Uganda a remission of duty to 0% on Galvanised coils of a thickness of 2.5mm and above for one year. To support the local manufacture of guard rails |
 | Listed Packaging materials and plastic materials for coffee | • Granted a remission of duty to apply a duty rate of a 0% instead of 10%, 10% instead of 25% on packaging material used by domestic processors of coffee, for one year |
 | Listed equipment for polishing and Heating gemstones | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Active yeasts | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Petroleum jelly | • Granted duty remission to 10% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Polyurethane resins | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
  | Uncoated/Unbleached Kraft Liner paperboard, in rolls or sheets, Glues based on starch Other plates, films, sheets of plastic, paper or paper board labels whether printed or not | • Granted duty remission from 35% and 10%, to 10% and 0% respectively for one year for manufacturers of paper bags, corrugated boxes for exporting products, raw materials used in the manufacture of surgical and examination medical gloves under the duty remission scheme in accordance with section 140 of the East African Co m m u n i t y Customs Management Act, 2004 |
 | Unbleached sack Kraft paper in rolls or sheets | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Paper and paperboard coated, impregnated or covered with plastics (excluding adhesives) | • Granted duty remission to 0% for one year under the duty remission scheme in accordance with section 140 of the East African Community Customs Management Act, 2004 |
 | Other plates, sheets, film, foil and strip, of plastic — unprinted | • Grant Uganda a remission of duty from 10% to 0% for one year. This is an input material for the label printing sector |
 | Mechanically Deboned Chicken Paste (MDM) | • Granted remission of duty from 60% to 35% for one year on MDM in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Greaseproof papers; and Other, Other Kraft paper and paperboard | • Grant Uganda aremission of duty from 10% to 0% for one year, packaging material for manufactured cheese in accordance with section 140 of the East African Community Customs Management Act, 2004. |
 | Compositing dry toilets | • Grant Uganda a stay of the application of EAC CET rate of 25% and apply a duty rate of 10% on compositing dry toilets, for one year. |
 | Various goods entering export processing zone or Freeport strictly for manufacturing of goods for export. “Export processing zone” means a designated part of Customs territory where any goods introduced are generally regarded, in so far as import duties and taxes are concerned, as being outside Customs territory but are restricted by controlled access | • Goods entering an export processing zone or a freeport shall be exempt from duty in accordance with the East African Community Customs Management Act |
 | Plant and machinery | • VAT deferment where payment of VAT at importation on specified imports is postponed to a future date. The cost of the plant and machinery should be at least $22,500 and above. |
 | Industrial replacement spare parts • A spare part is a duplicate part to replace a lost or damaged part of a machine. • Parts should be imported as replacement parts used exclusively on industrial machinery classified in Chapters 84 and 85 of the EAC Common External Tariff • Should be imported by registered manufacturers • Should not be for resale or any other commercial purpose other than for replacement of worn out or obsolete parts of industrial machines subject to such conditions as the commissioner may impose | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
| Containers and Pallets used for packaging. Containers, including boxes, tins, bottles, jars and other packages in which any goods not liable to ad valorem duty are packed and imported being ordinary trade packages for the goods contained therein Containers specially designed and equipped for carriage by any mode of transport Imported containers which the commissioner is satisfied on the recommendation of the director veterinary services that it is specially designed for storing semen for artificial insemination Any other packing material of any kind designed for packing goods for export | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
 | Pallets and pre-packing slings designed for packaging goods for export | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004. |
| TRANSPORT SECTOR | ||
| Description | Tax incentive | |
 | Free import of aircrafts and aft accessories: These include Aircrafts Aircraft engine, parts and accessories Air navigation instruments Lighting Radio and radar apparatus Equipment for Servicing and maintenance of air crafts Ground signs stairways for boarding aircraft, Catering stores e.g. luncheon boxes, cardboard trays, paper plates, paper napkins, lubricants; staff uniforms; calendars, diaries and pens as promotional materials for use in airline. | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | Specialized aircraft loading and unloading equipment Apron buses essentially for airports | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | Commercial Vehicles of gross weight 20 tonnes and above. | • Free of import duty for one year, VAT is payable |
 | Road Tractors for semi – trailers | • Free of import duty for one year, VAT is payable. |
 | Goods carrying vehicle with gross vehicle weight exceeding 5 tonnes but not exceeding 20 tonnes | • Import duty is 10% instead of 25% for one year |
 | Ships and other vessels includes the following Passenger and cargo vessels of all kinds of twenty five tonnage net weight or more Cable ships, floating factories, whale catching vessels, trawlers and other commercial fishing vessels EXCEPT sport fishing vessels Weather ships, hopper barges, lighters and pontoons (being flat decked vessels used for transportation of persons or goods) Ferry boats, parts and accessories EXCEPT batteries and sparking plugs | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | Battery operated vehicles for use in hotels, hospitals and airports. | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | designed for refuse/ garbage collection and disposal imported or purchased by local authorities / persons contracted by local authorities to collect refuse/ garbage. | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
| OIL AND GAS SECTOR |
| Description | Tax incentive | |
 | Equipment for use in the oil and gas sector. These include: Equipment and inputs and goods for direct and exclusive use in oil, gas or geothermal exploration and development EXCEPT motor vehicles. | • Exempted of all taxes under the fifth schedule of the East African Community Customs Management Act upon recommendation by a competent authority |
| EDUCATION AND SPORTS SETOR |
| Description | Tax incentive | |
 | Educational materials. Annex D to the Florence Agreement Scientific instruments or apparatus, intended exclusively for educational purposes or pure scientific research, provided: • That such scientific instruments or apparatus are consigned to public or private scientific or educational institutions approved by the competent authorities of the importing country for the purpose of duty-free entry of these types of articles, and used under the control and responsibility of theseinstitutions; That instruments or apparatus of equivalent scientific value are not being manufactured in the country of importation. Please take note that this is an excerpt of the main text. You are encouraged to look at the whole text for the relevant provision applicable to the goods you have imported. | • All Approved educational articles and materials as specified in the Florence agreement are tax exempt under the fifth schedule of the E ast A frican Community Customs Manag ement Act. |
 | One motor vehicle for rally driver and spare parts. | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | One Motor cycle for racing/rally | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | One Bicycle for racing/ rally | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | Exercise books | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 |
 | Mathematical sets & geometry sets used in educational services | |
 | Woodworking machines | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
 | Welding machines | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
 | Sewing machines | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
 | Crayons, coloured pencils, lead pencils, rulers, erasers, stencils, technical drawing sets, educational computer tablets, educational computer applications or laboratory chemicals for teaching science subjects used in educational services. | • Exempted from VAT under the VAT Act. |
 | Textbooks | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
 | Bible | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
 | Qu’rans | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common E xternal Tariff |
| ENERGY SECTOR |
| Description | Tax incentive | |
 | Specialized equipment for development and generation of solar and wind energy, including accessories and deep cycle batteries which use and/ or store power. These include: • Deep cycle batteries • Solar panels • Direct current inverters • Direct current charge controller | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | Penstock pipes for use in hydro power projects | • Exempted from VAT under the VAT Act.Import duty is 0 % under East African Community Common External Tariff . |
 | Plastic bag bio gas digesters | • Exempted from VAT under the VAT A ct. Import duty is 0% under East A frican Community C ommon E xternal Tariff . |
 | Water treatment effluent plant | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 20 04 |
Any of the following goods engraved or printed or marked with the hotel logo imported by a licensed hotel for its use:
| Description | Tax incentive | |
 | a) Washing machines Machine for washing clothes, bed linens, etc. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | b) Kitchen ware Instruments and utensils found in a kitchen, particularly those associated with the preparation and serving of food. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | c) Cookers Utensil, device, or apparatus for cooking | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | d) Fridges and freezers A box, room, or cabinet in which food, drink, etc., are kept cool by means of ice or mechanical refrigeration | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | e) Air conditioning systems A system used for cooling and drying the air in a building, room, etc. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | f) Cutlery Edged or cutting tools specifically implements for cutting and eating food. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | g) Televisions A device that receives television signals and reproduces them on a screen | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | h) Carpets A carpet is a textile floor covering typically consisting of an upper layer of pile attached to a backing | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | i) Furniture Large movable equipment, such as tables and chairs, used to make a house, office, or other space suitable for living or working | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | j) Linen and curtains Linen: Sheets, pillowcases, and duvet covers Curtain: A piece of material suspended at the top to form a covering or screen, typically one of a pair at a window | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | k) Gymnasium equipment Exercise equipment is any apparatus or device used during physical activity to enhance the strength or conditioning effects of that exercise by providing either fixed or adjustable amounts of resistance, or to otherwise enhance the experience or outcome of an exercise routine | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 2) Bathrobes | • Import duty is applicable at a rate of 0 % instead of 25% for one year when imported by a licensed hotel. |
 | 3) Clothes-dryers | • Import duty is applicable at a rate of 0% instead of 25% for one year when imported by a licensed hotel |
 | 4) Motor car for transportation of tourist imported by tour operators upon recommendation by a competent authority responsible for tourism promotion in a partner state provided the Vehicles meet the following conditions; a) They are four wheel drive with open roof facility for game viewing and have a seating capacity not exceeding 12 passengers. b) They have provisions for camping, rescue and first aid equipment, baggage and compartment and communication fitting s. c) They are of a colour that blends with the environment where they operate and have a clear and conspicuos label or marking of “Tourist vehicle.” d) Any other condition that the commisioner may impose. Provided that duties shall be payable upon disposal for other use or chang e of use | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 5) Sightseeing buses a. Front facing comfortable reclining coach seats. b. Basic lavatory facilities. c. Provisions for first aid equipment, communication fittings and luggage compartment. d. Seating capacity above 20 . e. Any other condition the commissioner may impose or vary. Provided that duties shall be payable upon disposal for other use or chang e of use. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 6) O verland truck • High clearance for off road driving . • Forward facing comfortable reclining coach seats. • Inverter for charging electrical items. • Camping stocks, tents, kitchen and food storag e. • Windows for good all round view. • Provisions for first aid equipment, communication fittings and luggage compartment. • Any other condition the commissioner may impose or vary.Provided that duties shall be payable upon disposal for other use or chang e of use | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 7) Tourism boats | • Tourism boats imported by a lincesed tour operator exempted from taxes under the 5th Schedule of the E A C C MA . |
Duty free import of gadgets used in promoting security of public spaces
| Description | Tax incentive | |
 | 2) Walk throug h m etal detec tors Walk throug h” metal detectors used for security screening at access points in prisons, courthouses, and airports to detect concealed metal weapons on a person’s body | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 3) C C T V c am eras CCTV (closed-circuit television) is aTV system in which signals are not publicly distributed but are monitored, primarily for surveillance an1)Hand held m etal detectors Hand Held Metal D etectors are used by S ecurity, Police and Military offi cers to carry out a non-invasive search of a person for metallic itemsd security purposes | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 1)Hand held m etal detectors Hand Held Metal D etectors are used by S ecurity, Police and Military offi cers to carry out a non-invasive search of a person for metallic items | |
 | 4 ) Bomb detectors A bomb detector is a device that enables non – destructive inspection to determine whether acontainer contains explosive material. Explosive detectors are commonly used at airports, ports and for border control | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 5) Under carriage Mirror A n under vehicleinspection system which is used to detect threats such as bom bs that are hidden underneath vehicles | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
Any of the following g oods eng raved or printed or marked with the hospital logo imported for use in licensed hospitals, as recommended by the Director of Medical S ervices subject to such conditions and limitations as the
Commissioner may impose.
| Description | Tax incentive | |
 | a) S hadow less lamps for use in operating theaters | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | b) Blood freezers | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | c) K itchen ware and equipment | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | d) L aundry equipment | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | e) Mattresses and linen | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | f) Bedside screens | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | g ) Air conditioners | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | h) Water heating equipments | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | i) Trolleys and stretchers | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | j) Furniture | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 2) Packaging material for medicines | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 3) R aw materials for the manufacture of medicaments | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 4) Examination gloves for laboratory and medical use. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 5) Hospital furniture imported by dealers for supply to licensed hospitals | • Exempted from excise duty under the Excise Duty Act. |
 | 6) Medical Autoclaves. A medical autoclave is a device that uses steam to sterilize equipment and other objects. This means that all bacteria, viruses, fungi, and spores are inactivated | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff. |
 | 7) X-R ay Machines for medical use X ray machine means an electrically powered device producing x rays for the irradiation of a human being or an animal for a therapeutic or diagnostic purpose or for industrial use | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff. |
 | 8) Chemical Analysis for blood analysis A blood chemistry analyzer may be used to test for many thing s, such as blood cell counts, therapeutic drug monitoring , illegal drug use, blood typing , protein analysis, checking thyroid function, checking for the presence of antibodies, and, when used by patients at home, for glucose or cholesterol monitoring | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff. |
 | 9) Ophthalmic instruments and appliances. This device is used to examine the eye. | • Exempted from VAT under the VAT Act. Import duty is 0 % under East African Community Common External Tariff . |
 | 10 ) Dental drill equipment A dental drill or dentist’s drill is a small, hig hspeed drill used during dental procedures, usually to remove decay and shape tooth structure prior to the insertion of a filling or crown. A dental drill may also be used in the cleaning and shaping of root canals during endodontic treatment, or to remove old or temporary filling s or crowns prior to the insertion of new or permanent restorations. | • Exempted from VAT under the VAT Act. Import duty is 0 % under East African Community Common External Tariff . |
 | 11) Ultrasound machinery An ultrasound machine makes images so that organs inside the body can be examined. The machine sends out high- frequency sound waves, which reflect off body structures. A computer receives the waves and uses them to create a picture. The test is done in the ultrasound or radiology department. | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 12) Syringes A medical device that is used to inject fluid into, or withdraw fluid from, the body. A medical syring e consists of a needle attached to a hollow cylinder that is fitted with a sliding plunger | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common External Tariff . |
 | 13) Cardio graphic machine .A machine for recording the beating of the heart. | • Exempted from VAT under the VAT Act. Import duty is 0% under East A frican Community Common External Tariff . |
 | 14 ) Wheel chairs A wheelchair is a manually operated or power- driven device designed primarily for use by an individual with a mobility disability for the main purpose of indoor, or of both indoor and outdoor, locomotion. | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 15) Crutches Medical Definition of Crutch. Crutch: A wooden or metal vertical prop that helps support a disabled person while he or she is walking . Arm crutches typically are metal and have a sing le shaft with a projecting handgrip and a cuff that closes around the arm. Crutches usually have a nonskid rubber tip on the bottom | • Exempted from all taxes under the 5th schedule of the East African Community Customs Management Act, 2004 |
 | 16) Artificial parts of the body ( teeth, leg s, joints). Dentures, (also known as false teeth), are prosthetic devices constructed to replace missing teeth; they are supported by the surrounding soft and hard tissues of the oral cavity. Conventional dentures are removable (removable partial denture or complete denture. | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 17) A prosthesis is an artificial device/substitute or that replaces a missing body part such as tooth, leg , arm, knee, facial bone, another joint, hip etc which may be lost through trauma, disease, or congenital conditions | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 18) Hearing aid. A hearing aid is a small electronic device that you wear in or behind your ear. It makes some sounds louder so that a person with hearing loss can listen, communicate, and participate more fully in daily activities. A hearing aid can help people hear more in both quiet and noisy situations | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 19) Medicated cotton wool | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 20 ) Medical bandage | • Exempted from VAT under the VAT Act. Import duty is 0% under East African Community Common External Tariff . |
 | 21) Refrigeration equipment for dead bodies for use in Hospital, city council or funeral home” | • Exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 . |
 | 22) Motor boat ambulance | • Import duty is 0% under East African Community Common External Tariff and exempted from VAT |
| Description | Tax incentive | |
 | • Specialised vehicles • Concrete Mixers – Self propelled • Concrete Pumps | • The equipment is free of import duty by tariff . • VAT is deferrable for VAT registered companies |
 | Earth Moving Machinery • Excavators • Bull dozers • Ang le Dozers | • The equipment is free of import duty by tariff . • VAT is deferrable for VAT registered companies |
 | Cranes for Construction | Cranes for Construction |
 | Scuff folding | • When obtained from the region of East Africa, they shall be exempted from import duty. |
 | Surveying Equipment • Global Positioning Systems (GPS) • Theodolites • Line of site equipment • Rangefinders They are largely used by road construction firms, surveyors, oil exploration, mining. | • The equipment is free of import duty by tariff. • VAT is payable |
 | Goods Carrying vehicles – Tippers • Gross Vehicle Weight exceeding 5 tones but not exceeding 20 tones. • Gross Vehicle Weight exceeding 20 tones. | • Goods carrying vehicle with gross weight exceeding 5 tones but not exceeding 20 tones import duty is 10% for one year Goods carrying vehicle with gross weight 20 tones and more is free of import duty for one year. |
 | Temporary imports of Construction Machinery of a specialized nature for use in the construction sector that is not listed above. Terms and conditions as specified in the East African Community- Customs Management Act, 2004 apply. | • Taxes suspended and goods secured on bond that is cancelled upon re- export. |
 | Pipe line construction of oil and gas from Uganda to Dar- es -salaam | • Inputs for use in the construction of the oil and gas pipeline are exempted from all taxes under the fifth schedule of the East African Community Customs Management Act, 2004 . |
 | Hydro power construction equipment and inputs. | • The supplies for the use in hydropower project are exempted from VAT. |
 | Communities (R E C s) that include East African Community (E A C ), Common Market for East and Central Africa (COMESA ). Soon entering the T R IPA R T IT E that will include E A C , C O ME S A and S A D C (South African Development C o- operation) | • Imports from the Regional Economic Communities are given preferential import duty treatment. |
 | The country has industries for local inputs that are of high quality and manufactured in Uganda. These items when procured locally attract only local taxes. | • Industries that produce items such as cables, cement, iron bars, pipes, nails, roofing sheets etc. |
 | Upcoming projects such as Standard Gauge Railway (SGR) are offering opportunities in construction sector. | • The project if funded by donors shall have its inputs exempted from taxes under the East African Community Customs Management Act, 2004 . |
 | Pre-fabricated building s for factory use imported by registered manufacturers or other entities such as warehouse construction | • VAT Deferrable for pre-fabricated building s for factory use. |
 | The supply of earth moving equipment and machinery for development of an industrial park or free zone to a developer of an industrial park or free zone whose investment is at least fifty million United States Dollars | • VAT is applicable at 0% under the VAT Act. |
 | The supply of construction materials for development of an industrial park or free zone to a developer of an industrial park or free zone whose investment is at least fifty million United States Dollars | • VAT exempt under the VAT Act Excise duty is nil |
DISCLAIMER:
This Information is strictly for purposes of guidance to our clientele and is subject to change on amendment of tax legislations & any other regulations that govern tax administration.
