Uganda: Tax highlights in budget | KPMG | GLOBAL

Uganda: Tax highlights in budget

Uganda: Tax highlights in budget

The 2016 budget, presented 9 June 2016, includes certain tax measures that focus on the oil and gas industry. For instance, there is a proposal to expand the definition of “licensee” to include a person undertaking petroleum exploration. Also, for petroleum exploration licenses granted after 2015, allowable deductions would be subject to the limitations on deductions under the production sharing agreement.


Related content

Another measure would provide a requirement for midstream operators to register for value added tax (VAT) purposes, even if they are not making taxable supplies, in a bid to relieve persons undertaking midstream operations.

Among the other income tax proposals are measures that would:

  • Limit carryforwards of tax losses when there is a change in the ownership of a company of 50% or more, unless the surviving company continues to conduct the same business as it did prior to the change and does not engage in any new business or investment after the change
  • Impose a withholding tax on rent paid to non-residents at a rate of 15% 
  • Aim at “treaty shopping” so that the ultimate beneficiary of the treaty benefit would need to reside in Uganda
  • Impose a withholding tax obligation on payments made to non-resident persons for telecommunications, and air transport and shipping services
  • Exempt from income tax, allowances paid to Members of Parliament


Read a June 2016 report [PDF 3.1 MB] prepared by the KPMG member firm in Uganda: Budget Brief

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal