Uganda: Tax provisions in 2017 budget

Uganda: Tax provisions in 2017 budget

The revenue objectives of the government of Uganda, as set forth in the 2017 budget, presented in June 2017, are to be supported by enhanced efficiency in tax administration.

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The proposed tax changes are scheduled to be effective 1 July 2017, including:

  • An exemption from value added tax (VAT) for supplies made to the government under an “aid-funded project”
  • A VAT exemption for animal feeds and pre-mixes, crop extension services, irrigation works, deep-cycle batteries and composite lanterns, certain hygiene products, and agricultural insurance premiums
  • A rate of VAT on imported wheat at 18%
  • Entities established by law to regulate the conduct of professionals will be exempt organizations
  • Interest accrued on unpaid tax is not to exceed the amount of the tax principal plus any penalty
  • Authority for the tax authorities to estimate rent of rental property in specific locations, as part of a focus on unreported rental income
  • A tax exemption for the Bujagali hydro power plant
  • Allowance for property placed in service outside Kampala of 50% of the cost basis of the property
  • Rules for the recharacterization of transactions not deemed to be at arm’s length
  • Imposition of withholding tax on winnings from sports betting
  • Clarification of the advance tax on taxpayers providing passenger transport services
  • Changes to fringe benefit rules for vehicles provided for private use of employees

 

Read a June 2017 report [PDF 1.04 MB] prepared by the KPMG member firm in Uganda

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