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Incentives

a) Investment Capital Allowances

  • Initial capital allowance on plant and machinery                    50-75%
  • Start up cost spread over 4 years                                             25% p.a.
  • Scientific research expenditure                                                 100%
  • Training expenditure                                                                  100%
  • Mineral exploration expenditure                                              100%
  • Initial Allowance on hotel, hospitals and Industrial buildings   20%
  • Deductible annual Allowances (depreciable assets)
  • Depreciation rates of assets range.                                         20-40%
  • Depreciation rate for Hotels, Industrial Buildings and Hospitals      5%

b) Investors who register as investment traders are entitled to VAT refund on building materials for industrial/commercial buildings.

c) Duty and Tax free import of Plant & Machinery.

d) First Arrival Privileges in the form of duty exemptions for personal effects and motor vehicle (previously owned for at least 12 months) to all investors and expatriates coming to Uganda.

e) Export Promotion Incentives and Facilities

  • Manufacturing Under Bond.
  • Duty exemption on plant and machinery and other inputs
  • Stamp duty exemption
  • Duty draw back – a refund of all or part of any duty paid on materials, inputs imported to   produce for export
  • Withholding tax exemptions on plant & machinery, scholastic materials, human & animal drugs and raw materials.
  • Ten year tax holiday
  • Duty remission scheme for exporters involved in value addition.