Tax Incentives

A Guide on INCENTIVES AVAILABLE
FOR INVESTORS IN UGANDA
5th Edition, August 2021
A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 1

2 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION
Foreword from the Commissioner General, URA
Uganda has been consistently attracting the highest foreign direct investment (FDI)
in East Africa by attracting between $250 – 300 million in FDI annually between 2010
and 2016 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 telecommunications, real estate,
banking, insurance, petroleum sector, energy, and mining and agro-export sectors.
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 aforementioned sectors. One of these
policies is the provision of tax incentives to investors.
This incentive regime is structurally embedded in the 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 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 3
INTRODUCTION
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.
NON-TAX INCENTIVES
SN INCENTIVES CONDITIONS FOR THE INCENTIVE

a. Securing land a) Acquisition of Investment license and
for industrial certificate from UIA;
development; b) Meeting a minimum capital requirement for
b. Securing land USD 50,000 for local investors;
for agricultural c) Meeting a minimum capital requirement for
development USD 250,000 for foreign investors;
(Commercial farming d) Investing in value adding projects
and value addition); e) Uses at least 70% of local raw materials
c. Facilitate investors to f) Employs 70% Ugandans or East Africans
access infrastructure consuming 70% of the wage bill;
development in the g) Invests USD 50 million in the development
Industrial parks; of Industrial Parks, relates to foreign
d. Provide policy investors
advocacy to h) Invests USD 10 million in the development
investors to support of Industrial Parks, relates to domestic
investment decision investors
i) Invests USD 300,000 in manufacturing
around Kampala, Uganda, relates to
domestic investors
j) Invests USD 150,000 in manufacturing,
in upcountry areas in Uganda, relates to
domestic investors
TAX INCENTIVES UNDER DOMESTIC TAXES

INCOME TAX
Beneficiary Incentives Period of Conditions for the Tax
Incentive Incentive
1. Developer of an Exemption of 10 years Must invest a
industrial park/free zone income derived minimum of USD
from renting out 50m for foreign
or leasing facilities investors or USD
established 10m for EAC citizens,
in an industrial park Incentive takes effect
or free zone. from the date of
commencement of
construction. Also

applies to an existing
investor making an
additional investment
of the same value.
2. Operator in an Income derived by 10 years Must invest a
Industrial Park or Free a person from minimum of USD 10m
Zone who invests in undertaking any of for foreign investors
processing agricultural the listed business and USD 300,000 for
products; manufacturing activities in the EAC citizens or USD
or assembling Industrial Park or 150,000 where the
medical appliances, Free Zone. investment is made
medical sundries or upcountry.
pharmaceuticals, building
materials, automobiles Incentive takes effect
and house hold from the date of
appliances; commencement of
manufacturing furniture, the specified business,
pulp, paper, printing and same incentives
publishing of instructional applies to an existing
materials; manufacturing operator in an
chemicals for agricultural Industrial Park or Free
use, industrial use, Zone.
textiles, glassware, leather
products, industrial
The investor must use
machinery, electrical
at least 70% of locally
equipment, sanitary
sourced raw materials
pads and diapers;
establishing or operating and employ at least
vocational or technical 70% EAC citizens who
institutes; or carrying must take up at least
on business in logistics 70% of the wage bill.
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

3. Investor outside an Income derived by 10 years Must invest a
industrial park or a person from minimum of USD 10m
free zone carrying out undertaking any for foreign investors
activities as in 2 above. of the specified and USD 300,000 for
business activities. 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.
and employ at least
70% EAC citizens who
must take up at least
70% of the wage bill.
5. Exporters of finished Income derived 10 years Exemption valid from
consumer and capital from the the beginning of the
goods. exportation of investment.
finished consumer Investor must
and capital goods. export at least
80% of production.
Investor must apply
for and be issued
with a certificate of
exemption.
6. Collective Investment Income tax Indefinite Must be licensed to
Schemes to the extent of exemption operate as a collective
distribution for Collective investment scheme.
Investment Participants in the
Schemes 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
7. Mining and petroleum Special income tax Indefinite Mining and petroleum
operators deductions allowed operators
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 plan,
deductions for
recovery of costs
for work programs,
exemption of
income tax on
amounts withdrawn
from a rehabilitation
fund to meet
expenditure
incurred under
an approved
rehabilitation plan,
10% withholding tax
on 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.
8. Aircraft Operators Income Tax Indefinite Applies to persons
exemption for engaged in air
Aircraft Operators transport for domestic

and international
traffic or aircraft
leasing.
9. Private employers of Deduction of 2% Indefinite 5% of employees must
persons with disabilities Income tax for be PWDs
(PWDs) employers that
employ PWDs
10. Non-profit making Income tax Indefinite Where the
Organizations exemption Commissioner has
issued a written
ruling stating that it is
exempt
11. Compliant taxpayers 6% WHT exemption 12 months Where the

renewable Commissioner is
satisfied that the
taxpayer has regularly
complied with the
obligations under the
tax laws
12. All taxpayers 100% deduction of Indefinite A person who incurs
Scientific research expenditure for
expenditure scientific research
13. All taxpayers 100% deduction of Indefinite Employers who
training expenditure train permanent
residents or provide
tertiary education
not exceeding in the
aggregate 5 years
14. All taxpayers Initial allowance Indefinite All taxpayers with
and Depreciation depreciable assets
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.
15. All taxpayers Carry forward Duration of All taxpayers
losses: Assessed the loss
loss is carried
forward as a
deduction in the
following year of
income.
16. Investor established Double Taxation Duration of Beneficial owner of
in a country with which Agreements (DTA): the DTA investment as defined
Uganda has a DTA Investors from in the Income Tax Act
countries with established with
active DTA’s with economic substance
Uganda i.e. United in a country with
Kingdom, Denmark, which Uganda has a
Norway, South DTA.
Africa, India, Italy,
Netherlands and
Mauritius.
Withholding tax
rates applicable to
dividends, interests,
management fees
and royalties are
10% except UK at
15%

VAT ACT
Beneficiary Incentives Period of Tax incentive
Incentive
1. Developer of No VAT on any Duration The investment must
an industrial payment for feasibility of the be at least USD 50m.
park or free studies, design development The development
zone construction services, must be for an
construction materials industrial park or free
and earth moving zone.
equipment and
machinery.
2. Investment No VAT on the supply Indefinite Must invest a minimum
in processing of feasibility study and of USD 10m for
agricultural design services and on foreign investors and
products; the supply of locally USD 300,000 for
manufacturing produced raw materials EAC citizens or USD
or assembling and inputs. 150,000 where the
medical investment is made
appliances, upcountry.
medical
sundries or Incentive takes effect
pharmaceuticals, from the date of
building commencement of
materials, the specified business,
automobiles same incentives
and house hold applies to an existing
appliances; operator in an
manufacturing Industrial Park or Free
furniture, pulp, Zone.
paper, printing
and publishing
of instructional
materials;
establishing
or operating and employ at least
vocational 70% EAC citizens who
or technical must take up at least
institutes; or 70% of the wage bill.
carrying
on business in
logistics and
warehousing,
information

technology or
commercial
farming;
manufactures
tyres, footwear,
mattresses or
toothpaste.” (vii)
manufactures
chemicals for
agricultural
and industrial
use, textiles,
glassware,
leather products,
industrial
machinery
and electrical
equipment,
sanitary pads
and diapers.
3. The supply No VAT on the supply Indefinite Must invest a minimum
of services to a of feasibility study or to of USD 30m for
manufacturer undertake design and foreign investors
other than the construction and USD 5 m for
manufacturer a local investor. In
above. case of any other
manufacturer from
the date on which
the manufacturer
makes an additional
investment equivalent
to USD 30 m for a
foreign investor or
USD 5 m for a local
investor.

subject to their
availability, capacity to
employ at least 70%
EAC citizens who must
take up at least 70% of
the wage bill.

4. Developer of a No VAT on the Duration of The investor must
hotel or tourism supply of feasibility the invest at least USD 8m.
facility study, design and development The feasibility studies
construction services; must be for the
or on the supply of development of
locally produced a hotel or tourism
materials 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 100 guests.
5. Developer of a No VAT on supply of Duration of Must invest at least
hospital facility feasibility study, design the USD 5 million.
and construction development The feasibility study
services; or the supply must be for the
of locally produced development of a
materials; or the hospital facility;
supply of machinery
or the construction of
and equipment or
hospital premises and
furnishings and fittings
other infrastructure;
or supply of the
machinery, equipment,
furnishings and fittings
for use in the hospital
facility.
The investment must
be for a hospital at the
level of a national
referral hospital with
capacity
to provide specialised
medical care.
5. Agriculture VAT Exemption on Indefinite Taxpayers in
agricultural supplies: agricultural sector.
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
6. VAT VAT registered persons Indefinite Turnover of UGX
Registered claim all the VAT 150m in any 12-month
taxpayers incurred. period for first time
registration, ability to
keep proper books of
accounts and making
taxable supplies.
7. Contractors Deemed VAT: Duration Contractors to
to licensees Tax payable on supply of the licensees undertaking
undertaking by a contractor to a investment mining/ petroleum
mining/ licensee undertaking operations
petroleum mining or petroleum
operations 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
8. Contractors Deemed VAT: Duration of Contractors executing
executing aid- Tax payable on a the project aid-funded projects
funded projects taxable 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.

9. Contractor Input tax credit on Indefinite Persons providing
or licensee or a imported services. services to the
person providing licensees in mining
business process operations or
outsourcing licensees in petroleum
services. operations. Persons
granted mining rights
or with whom the
Government has
entered into a
petroleum agreement.
Persons providing
business process
outsourcing services.
10. Energy Supply of any Indefinite Energy industry
industry 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.
11.Insurance Life, medical, micro, Indefinite Insurance services
Industry aircraft and reinsurance
services is exempt from
VAT.
12.Manufacturers The supply of drugs, Indefinite Manufactured in
of medicines medicines and medical Uganda
sundries manufactured
in Uganda are zero-
rated
13.Importers of VAT exemption at Indefinite Imported
medicines importation
14. Exporters Zero rating Indefinite All exporters
15. Aviation Zero rating of supply Indefinite Aviation industry
industry of leased aircraft,
aircraft engines, spare
parts for aircraft,
aircraft maintenance
equipment and repair
services

STAMP DUTY ACT
incentive
1. Developer of an No Stamp duty on Duration of Must invest a
industrial park/ debentures, lease of development minimum of USD 50m
free zone land, Increase of share and incentive takes
capital, transfer of land. effect from the date
of commencement of
construction.
2. Manufacturers Nil stamp duty on Duration of Must invest a
execution of the development minimum of USD 50m
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
3. Operator No Stamp duty on Duration of Must invest a
within an debentures, lease of activity minimum of USD 10m
industrial park land, Increase of share for foreign investors
or free zone or capital, transfer of land. and USD 300,000 for
an operator of a EAC citizens or USD
single factory or 150,000 where the
other business investment is made
outside the upcountry.
industrial park
who invests in

agro processing, Incentive takes effect
food processing, from the date of
medical commencement of
appliances, the specified business,
building same incentives
materials, applies to an existing
light industry, operator in an
automobile Industrial Park or Free
manufacturing Zone.
and assembly,
household The investor must use
appliances, at least 70% of locally
furniture, logistics sourced raw materials
and warehousing,
and employ at least
information 70% EAC citizens who
technology or must take up at least
commercial 70% of the wage bill.
farming,
operating
vocational
or technical
institutes.
4. Hotel Nil Stamp Duty on Duration of the Must invest at least
or tourism debenture, further development USD 8m.
developer charge, lease of land,
increase of share capital,
Hotel or tourism
transfer of land and
facility should have
agreement to provide
room capacity
services on conducting
exceeding one
a feasibility study or
hundred guests.
developing a design for
construction.
5. Hospital facility Nil Stamp Duty on Duration of the a. Must invest at least
developer debenture, further development USD 5m.
charge, lease of land, b. Develop a hospital
increase of share capital, at the level of a
transfer of land and national referral
agreement to provide hospital with
services on conducting capacity to provide
a feasibility study or specialized medical
developing a design for care
construction.

6. Strategic Nil stamp duty Indefinite Investor must have
investments a. Capacity to use at
(specified in Item least 50% of the
60 A (iii) of the locally produced
Second Schedule raw materials,
of the Stamp subject to
Duty Act) availability
b. Have capacity to
use 50% of raw
materials sourced
locally and;
c. Be able to employ
a minimum of 100
citizens
EXCISE DUTY ACT

Incentive
1. Industrial parks Nil duty on construction Duration of Must invest a
or free zones materials for development development minimum of USD
developer of industrial parks or free 50m for foreign
zones by a developer investors & USD
10m for EAC
citizens.
The incentive
takes effect
from the date of
commencement of
construction.
2. Manufacturers Nil excise duty on Duration of Must invest a
construction materials of development minimum of USD
a manufacturer, (excluding 50m or, in the
a manufacturer dealing case of any other
in agro processing, food manufacturer,
processing, medical who makes
appliances, building an additional
materials, light industry, investment
automobile manufacturing equivalent to USD
and assembly, household 50m
appliances, furniture,
logistics and warehousing,
information technology, or
commercial farming)

2. Operator Nil duty on construction Indefinite Must invest a
within the materials of a factory minimum of USD
industrial park, or warehouse exclusive 10m for foreign
free zone or of those available on investors and USD
other business the local market, locally 300,000 for EAC
outside the produced raw materials citizens or USD
industrial park and inputs. 150,000 where the
or free zone investment is made
who invests upcountry.
in processing
agricultural Incentive takes
goods; effect from
manufactures or the date of
assembles commencement
medical of the specified
appliances, business, same
medical incentives applies
sundries or to an existing
pharmaceuticals, operator in an
building Industrial Park or
materials, Free Zone.
automobiles,
household
The investor must
appliances or
use at least 70% of
manufactures
locally sourced raw
furniture, pulp,
materials
paper, printing
and publishing and employ at least
of instructional 70% EAC citizens
materials; carries who must take up
on business in at least 70% of the
logistics and wage bill.
warehousing,
information
technology or
commercial
farming and
technical or
vocational
institutes.

3. Duty Excise duty will be Indefinite Manufacturers of
remission remitted on plastic specified goods
products manufactured
for use in packaging of
products for export, use in
packaging medicaments
and is manufactured from
recycled plastic
4. Opaque beer Excise duty reduced to Indefinite Opaque beer
20% or shs. 230 per liter
whichever is higher
INTERNATIONAL TRADE
AGRICULTURAL SECTOR
Item Description Tax incentive
Hoes • VAT Exempted when
A hoe is a long- imported by dealers under
handled gardening the VAT Act.
tool with a thin • Exempted from all taxes
metal blade, used when imported by persons
mainly for weeding engaged in agriculture under
and breaking up the 5th Schedule of the East
soil. African Community Customs
Management Act, 2004.
Ploughs, Harrows, • VAT Exempted when
seeders, planters imported by dealers under
and transplanters, the VAT Act.
manure spreaders • Exempted from all taxes
and fertilizer when imported by persons
distributors engaged in agriculture under
the 5th Schedule of the East
African Community Customs
Agricultural • VAT Exempted when

sprayers imported by dealers under
the VAT Act.
• Exempted from all taxes
when imported by persons
engaged in agriculture under

Fertilizers • Exempted from all taxes
A fertilizer is any under the 5th Schedule of
material of natural the East African Community
or synthetic origin Customs Management Act,
(other than liming 2004 upon approval by
materials) that is the Ministry of Agriculture,
applied to soils or Animal Industry and
to plant tissues Fisheries.
(usually leaves) to
supply one or more
plant nutrients
essential to the
growth of plants
Refrigerated Trucks • Exempted from all taxes
under the fifth schedule of
the East African Community
Customs Management Act,
2004.
chemicals imported by dealers under
(fungicides and the VAT Act.
pesticides) • Exempted from all taxes
Veterinary • •VAT Exempted when

Chemicals imported by dealers under
(Acaricides) the VAT Act.
Tractors imported by dealers under
the VAT Act.

Aluminum Cans for • Exempted from all taxes
the dairy industry under the fifth schedule of
2004.
Heat Insulated Milk • Exempted from all taxes

tanks for the dairy under the fifth schedule of
industry the East African Community
2004.
Insulated tankers • Exempted from all taxes

under the fifth schedule of
2004.
Imported inputs • Exempted from all taxes
and implements when imported by persons
by persons engaged in horticulture,
engaged in agriculture, aquaculture
horticulture, or floriculture under the
agriculture or 5th Schedule of the East
floriculture and African Community Customs
aquaculture sector Management Act, 2004.
e.g. hatching eggs,
day old chicks,
semen, fish eggs,
Fry/ fingerling
(young fish),
green houses/
materials used
in construction
of green houses,
flower cuttings,
incubators,
hatcheries etc.
All equipment Exempted from all taxes when
and gear used imported by persons engaged
in bee keeping in horticulture, agriculture,
as authorized by aquaculture or floriculture under
the Director of the 5th Schedule of the East
Veterinary Services African Community Customs
and subject to such Management Act, 2004.
conditions and
limitations that the
Commissioner may
impose’.

Cold Rooms • Import Duty is 0%
A cold a room in which in accordance with
a low temperature is the EAC CET. Helps
maintained (as for on post-harvest
management and
refrigeration) cold chain storage of
agricultural products
such beef, chicken,
fish etc
Poultry parent stock • VAT Exempted when
imported by persons imported by dealers
engaged in poultry farming. under the VAT Act.
A broiler and layer • Exempted from all
breeder farms raise taxes when imported
parent stock which by persons engaged
produce fertilized eggs. in agriculture under
A broiler/layer hatching the 5th Schedule
egg is never sold in shops of the East African
and is not meant for Community Customs
human consumption but Management Act,
for hatching into day old 2004.
chicks.
Seeds for sowing, spores • Exempted from all
and cut plants taxes under fifth
A seed is an embryonic schedule of the East
plant enclosed in a African Community
protective outer covering. Customs
Management
Act, 2004 upon
approval by Ministry
of Agriculture
Animal Industry and
Fisheries.
Breeding animals. • VAT Exempted when
Breeding stock is a group imported by dealers
of animals used for the under the VAT Act.
purpose of planned • Exempted from all
breeding taxes when imported
by persons engaged
in agriculture under
the 5th Schedule
of the East African
Community Customs
Management Act,
2004.

Preparations for cleaning • Exempted from all
Diary apparatus taxes under the fifth
Example PFANZITE schedule of the East
POWDER DAIRY African Community
DETERGENT. Customs
Management Act,
Pfanzite is a highly 2004.
chlorinated, powdered
manual cleaner designed
especially for cleaning
bulk tanks, the Surge
bucket milker and
utensils.
Fish, Crustaceans and • Exempted from all

Molluscs, fresh (dead taxes under the fifth
or live) chilled or frozen schedule of the East
caught and landed African Community
by canoes or vessels Customs
registered and based in Management Act,
a Partner State 2004.
Feeds for Poultry and • VAT Exempted when
Livestock imported by dealers
Poultry under the VAT Act.
Feed is food for farm • Exempted from all
poultry, including taxes when imported
chickens, ducks, geese by persons engaged
and other domestic in agriculture under
birds. Modern feeds the 5th Schedule
for poultry consists of the East African
largely of grain, protein Community
supplements such as Customs
soybean oil Management Act,
2004.
meal, mineral
supplements, and
vitamin
supplements
Machinery for • VAT Exempted when
processing dairy imported by dealers
products under the VAT Act.
• Import duty is
0%, under East
African Community
Common External
Tariff VAT Exempted.

Packing material of • Exempted from all
any kind designed for taxes when imported
packaging goods for with an intention of
export packaging goods
meant for export,
2004.
The supply of irrigation • VAT Exempted when

works, sprinklers and imported by dealers
ready to use drip lines 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
MANUFACTURING SECTOR
Description Tax incentive
Raw materials used in • Duty draw back i.e.

production of goods Customs refunds
meant for export. of all or part of any
import duty paid
on materials or
inputs imported
to produce goods
for export or
used in a manner
for a purpose
prescribed as
condition for
granting duty
draw back.
White refined sugar for • Duty remission to
Industrial use. The 10% on imported
industrial sugars white refined
category includes industrial sugar for
sweeteners that service industrial use.
food and confectionary
manufacturers, as well
as the catering, baking,
pharmaceutical and
beverage industries

Plant, machinery, • Manufacturing
equipment and raw Under Bond
materials used in facility. A facility
production of goods for extended to
export. manufacturers
to import plant,
machinery,
equipment and
raw materials tax
free, for exclusive
use in the
manufacture of
goods for export
Paper for use in the • Imported at
manufacture of exercise import duty rate
books and textbooks. of 0% under duty
An exercise book or remission scheme
composition book is a for one year.
notebook that is used in
schools to copy down
school work and notes.
Stranded wire used in • Duty remission
manufacture of tyres. at 0% for
A stranded wire as manufacturers
opposed to solid wire is of motor vehicle
a composite of a bundle tyres for one year.
of small gauge wires
wrapped in a particular
pattern inside insulation to
make a larger conductor.
Treads for cold retreading • Duty remission

used in retreading of tyres. to 0% for
The tread of a tyre or track manufacturers
refers to the rubber on its of motor vehicle
circumference that makes tyres under the
contact with the road or duty remission
the ground. scheme in
Retread, also known as accordance with
“recap,” or a “remold” is a section 140 of
re-manufacturing process the East African
for tyres that replace the Community
tread on worn tyres. Customs
Management Act,
2004.

Raw materials for • Duty remission to
manufacture of aluminum 0% for one year
cans for the dairy industry. under the duty
Aluminum can is a bucket, remission scheme
pail, or other container in accordance
made of aluminum with section 140
that is used for holding of the East African
or carrying liquid, food, Community
beverage etc. Customs
Management Act,
2004.
Unassembled • Imported at import duty rate

(Complete of 10% under duty remission
Knocked Down) scheme in accordance
motor cycle kits with section 140 of the
imported by East African Community
approved local Customs Management Act,
assemblers of 2004.
motor cycles.
Unassembled • Imported at import duty rate
(Complete of 0% under duty remission
Knocked Down) scheme in accordance
bicycle kits with section 140 of the
imported by East African Community
approved local Customs Management Act,
assemblers of 2004.
bicycles.
Raw materials • Imported at import duty rate
and inputs used of 0% under duty remission
in the assembly scheme in accordance
of transformers with section 140 of the
and switch gear. East African Community
2004
Raw materials • Remission of import duty
for manufacture rate of 0% under duty
of sanitary remission scheme in
towels and accordance with section
tampons 140 of the East African
Community Customs
Management Act, 2004
Inputs used for • Remission of import
the production duty rate 0% under duty
of solar panels remission scheme in
accordance with section
140 of the East African
Community Customs

Component • Remission of import duty
parts and rate of 10% under duty
inputs for the remission scheme in
assemblers of accordance with section
refrigerators and 140 of the East African
freezers. Community Customs
Inputs and • Remission of import duty
raw materials rate of 0% under duty
for use in the remission scheme in
manufacture accordance with section
of food 140 of the East African
supplements Community Customs
for infants and Management Act, 2004
nutrient deficient
persons
Scrap batteries • Remission of import duty rate of

for manufacture 0% under duty remission scheme
of lead batteries in accordance with section 140
of the East African Community
Customs Management Act, 2004.
Inputs used in • Duty remission to 0% under

the production the duty remission scheme in
of gas cylinders accordance with section 140 of the
imported by East African Community Customs
manufacturers of Management Act, 2004.
such cylinders
Inputs for the • Duty remission to 0% under

manufacture of the duty remission scheme in
dry cell batteries. accordance with section 140 of the
East African Community Customs

manufacture of the duty remission scheme in
matches and accordance with section 140 of the
match boxes. East African Community Customs

manufacture the duty remission scheme in
of deep cycle accordance with section 140 of the
batteries East African Community Customs

Materials for • Exempted from all taxes under the
manufacture of 5th schedule of the East African
mosquito nets Community Customs Management
Act, 2004.
Inputs for use in • Exempted from all taxes under

the manufacture of the 5th schedule of the East
medical diagnostic African Community Customs
kits imported by Management Act, 2004
manufacturers of
medical diagnostic
kits as approved by
a Director medical
services
Packing materials • Exempted from all taxes under
and raw materials for the 5th schedule of the East
the manufacture of African Community Customs
medicaments Management Act, 2004.
Iron and steel • Duty remission on inputs to

products for 0% under the duty remission
manufacture of scheme in accordance with
automobile leaf section 140 of the East
springs, bolts and nuts African Community Customs
Trigger spray and • Duty remission on inputs to
lotion pumps for 0% under the duty remission
the manufacture of scheme in accordance with
cosmetic containers section 140 of the East
Noodles for the • Duty remission to 10% for one
manufacture of toilet year under the duty remission
soap scheme in accordance with
section 140 of the East
Umbrella heads for • Import duty remitted from 25%
roofing nails to 10% for the manufacture of
roofing nails.
Glucose Syrup • Import duty is applicable at a

rate of 0% for one year.

Odoriferous mixtures • Duty remission to 0% for one
of a kind used as raw year under the duty remission
materials in food and scheme in accordance with
drink industries section 140 of the East
Inputs for the • Granted duty remission at 0%
manufacture of on inputs for the manufacture
toothbrushes of toothbrushes under the
duty remission scheme in
accordance with section 140
of the East African Community
2004.
Nylon yarns for the • Duty remission to 0% for one
manufacture of fishing year under the duty remission
nets. scheme in accordance with
Inputs imported • Duty remission to 0% for one

by a manufacturer year under the duty remission
for the use in scheme in accordance with
the manufacture section 140 of the East
of agricultural African Community Customs
equipment. Management Act, 2004.
Inputs used in the • Granted duty remission at
manufacture of 0% on inputs used in the
pesticides, fungicides, manufacture of pesticides,
insecticides and fungicides, insecticides and
acaricides as acaricides as approved by the
approved by the Ministry of Agriculture.
Ministry of Agriculture
Inputs used in the • Granted duty remission at
manufacture of 0% on inputs used in the
energy stoves. manufacture of energy saving
stoves.
Roofing • Inputs for the manufacture of roofing

tiles coated tiles to be imported at a duty rate of
with acrylic 0% for one year.
paint and the • Inputs for the manufacture Roofing
weather side tiles coated with acrylic paint and the
coated with weather side coated with natural sand
natural sand granules to be imported at a duty of
granules 0% for one year.
Jacquard • Import duty applicable at a rate of 10%
Material for for one year from 25%.
Making Spring
mattresses
(printed with
Logo)
Weave fabrics • Import duty applicable at a rate of 10%
of polyester from 25% for one year.
staple fibre
(Woven Grey
Fabric of
higher (finer)
yarn counts
for wet.
Poly Cotton • Import duty applicable at a rate of
Material 10% for one year. To support the textile
for making sector by increasing availability of
mattresses these materials.
Poly Vinyl • Import duty applicable at a rate of 0%
Alcohol 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
Aerosal 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
Organic • Duty remission to 0% instead of 10%

surface for one year under the duty remission
active agents scheme in accordance with section
(Anionic) 140 of the East African Community
(LABSA) Customs Management Act, 2004.

Organic • Duty remission to 0% instead of 10%
surface for one year under the duty remission
active agents scheme in accordance with section
(Cationic) 140 of the East African Community
Textile • Duty remission to 0% instead of 10%

garments for one year under the duty remission
coated with scheme in accordance with section
gum for direct 140 of the East African Community
use in the Customs Management Act, 2004.
manufacture
of books
Duplex boards • Duty remission to 0% from 10% for one
year under the duty remission scheme
in accordance with section 140 of the
Inputs for • Duty remission to 0% for one year

assembly of under the duty remission scheme in
ships accordance with section 140 of the
Inputs for • Duty remission to 0% for one year

assembly of under the duty remission scheme in
equipment accordance with section 140 of the
specially East African Community Customs
designed Management Act, 2004.
for use by
disabled, blind
and physically
handicapped
persons
Inputs for • Granted duty remission rate of 0%

manufacture for one year under the duty remission
of filters scheme in accordance with section
Groats and • Granted duty remission rate of 0%
meal of wheat for one year under the duty remission

Unassembled • Granted duty remission rate of 0%
speakers for one year under the duty remission
(CKD)-inputs scheme in accordance with section
for assembly 140 of the East African Community
of speakers Customs Management Act, 2004.

(CKD) hot for one year under the duty remission
water kettles- scheme in accordance with section
inputs for 140 of the East African Community
assembly of Customs Management Act, 2004.
hot water
kettles
(CKD) DVD for one year under the duty remission
players-inputs scheme in accordance with section
of DVD players Customs Management Act, 2004.

flat iron for one year under the duty remission
(CKD)-inputs scheme in accordance with section
of flat iron Customs Management Act, 2004.

(CKD) for one year under the duty remission
blenders- scheme in accordance with section
inputs for 140 of the East African Community
blenders

(CKD) LED, for one year under the duty remission
CFL bulbs scheme in accordance with section
- inputs for 140 of the East African Community
LED & CFL
bulb
table, floor, for one year under the duty remission
and wall fans scheme in accordance with section

Cookers for one year under the duty remission
Listed inputs • Granted duty remission rate of 0% and

for the 10% under the duty remission scheme
manufacture in accordance with section 140 of the
of furniture East African Community Customs
Steel Blanks • Granted duty remission rate to 10%

for Spoons for one year under the duty remission
and forks scheme in accordance with section
Stranded wire, • Granted duty remission rate to 0%

ropes and for one year under the duty remission
cables for the scheme in accordance with section
manufacture 140 of the East African Community
of toughened Customs Management Act, 2004.
and laminated
glass
Other plates, sheets, • Granted duty remission rate

film, foil and strip, of of 0% for one year under
plastics, non-cellular the duty remission scheme
and not reinforced, in accordance with section
laminated, supported 140 of the East African
or similarly combined Community Customs
with other materials. Management Act, 2004.
Of poly (vinyl butyral)
for the manufacture
of toughened and
laminated glass.
Non-wired glass for • Granted duty remission of
the manufacture 0% for one year under the
of toughened and duty remission scheme in
laminated glass. accordance with section
Community Customs

Paints and varnishes • Granted duty remission to
(including enamels and 10% for one year under the
lacquers) based on duty remission scheme in
synthetic polymers or accordance with section
chemically modified 140 of the East African
natural polymers, Community Customs
dispersed or dissolved Management Act, 2004.
in a non-aqueous
medium for the
manufacture of
decorative aluminum
panels
Aluminium plates, • Granted duty remission to
sheets and strip 10% for one year under the
of a thickness
exceeding 0.2 mm 140 of the East African
of aluminum alloy for Community Customs
the manufacture of Management Act, 2004.
decorative aluminum
panels
Listed inputs for the • Granted duty remission to
manufacture of baby 0% for one year under the
diapers duty remission scheme in
Community Customs
Acrylic polymers for • Granted duty remission to
manufacture of paints 0% for one year under the
Community Customs
Listed inputs for the • Granted duty remission to
manufacture of textiles 0% and 10% for one year
(garments) under the duty remission
scheme in accordance with
Listed inputs for • Granted duty remission to
the manufacture of 0% and 10% for one year
footwear (shoes) under the duty remission
scheme in accordance with

Inputs for the • Granted duty remission to
manufacture of edible 10% for one year under the
salt of sub-heading duty remission scheme in
2501.00.00 accordance with section
Community Customs
Inputs for the assembly • Granted duty remission to

/ manufacture of 0% for one year under the
mobile phones duty remission scheme in
Community Customs
Parts of chains for • Granted duty remission to

assemblers of chains 0% for one year under the
for motorcycles, duty remission scheme in
bicycles and industrial accordance with section
machinery 140 of the East African
Community Customs
High tensile galvanized • Granted duty remission to
wire for manufacture of 10% for one year under the
power cables duty remission scheme in
Community Customs
Listed Packaging • Granted a remission of duty

materials to apply a duty rate of a 0%
on packaging materials used
by domestic processors of
coffee, for one year
Inputs to manufacture • Granted duty remission to

essential medical 0% for one year under the
products and duty remission scheme in
supplies including accordance with section
masks, sanitizers, 140 of the East African
coveralls, face shields Community Customs
and ventilators for Management Act, 2004
treatment of and
management of
epidemic

Listed equipment for • Granted duty remission to
polishing and Heating 0% for one year under the
gemstones duty remission scheme in
Community Customs
Active yeasts • Granted duty remission to
10% for one year under the
Community Customs
Petroleum jelly • Granted duty remission to

10% for one year under the
Community Customs
Polyurethane resins • Granted duty remission to 0%

for one year under the duty
remission scheme in accordance
with section 140 of the East
Unbleached • Granted duty remission to 10%

Kraftliner in rolls or for one year under the duty
sheets remission scheme in accordance
Unbleached sack • Granted duty remission to 0%
kraft paper in rolls or for one year under the duty
sheets remission scheme in accordance
Paper and • Granted duty remission to 0%
paperboard coated, for one year under the duty
impregnated or remission scheme in accordance
covered with with section 140 of the East
plastics (excluding African Community Customs
adhesives) Management Act, 2004

Greaseproof papers; • Grant Uganda a remission of
and Other, Other duty to apply a duty rate of 0%
kraft paper and for one year.
paperboard
Aluminium wire, not • Grant Uganda cable

alloyed: -- Of which manufacturers a remission of
the maximum cross- duty to apply a duty rate of 0%
sectional dimension for one year.
exceeds 7 mm
Unbleached • Grant Uganda a remission of

Kraftliner in rolls or duty to apply a duty rate of 0%
sheets for one year. This is restricted
to only corrugated box
manufacturers
Of other plastics- • Grant Uganda a remission of

Packaging Bags for duty to apply a duty rate of 10%
Packing Coffee for one year. This is restricted to
manufacture of coffee
Various goods • Goods entering an export

entering export processing zone or a freeport
processing zone or shall be exempt from duty
Freeport strictly for in accordance with the East
manufacturing of African Community Customs
goods for export. Management Act
“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
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 • Exempted from all
parts taxes under the fifth
• A spare part is a duplicate schedule of the East
part to replace a lost African Community
or damaged part of a Customs Management
machine. Act, 2004.
• 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
Containers and Pallets used for • Exempted from all
packaging. taxes under the fifth
Containers, including boxes, schedule of the East
tins, bottles, jars and other African Community
packages in which any goods Customs Management
not liable to ad valorem duty Act, 2004.
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

Pallets and pre-packing slings • Exempted from all
designed for packaging goods taxes under the fifth
for export schedule of the East
African Community
Customs Management
Act, 2004.
TRANSPORT SECTOR
Duty free import of aircrafts • Exempted

and aircraft accessories: from all taxes
These include under the fifth
• Aircrafts schedule of the
East African
• Aircraft engine, parts and Community
accessories Customs
• Air navigation instruments Management
• Lighting Act, 2004
• 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.
1. Specialized aircraft loading • Exempted
and unloading equipment from all taxes
under the fifth
2. Apron buses essentially schedule of the
for airports
East African
Community
Customs
Management
Act, 2004

Motor Vehicles for transport • Free of import
of goods with gross vehicle duty for one
weight exceeding 20 tons year, VAT is
payable
Road Tractors for semi - • Free of import

trailers. duty for one
year, VAT is
payable.
Motor Vehicles for Transport • Import duty is

of Goods With Gross Vehicle 10% instead of
Weight Exceeding 5 Tons But 25% for one
not Exceeding 20 Tons year
Ships and other vessels • Exempted from

includes the following all taxes under the
1. Passenger and cargo fifth schedule of
vessels of all kinds of the East African
twenty five tonnage net Community
weight or more Customs
Management Act,
2. Cable ships, floating 2004
factories, whale
catching vessels,
trawlers and other
commercial fishing
vessels EXCEPT sport
fishing vessels
3. Weather ships, hopper
barges, lighters and
pontoons (being flat
decked vessels used for
transportation of
persons or goods)
4. Ferry boats, parts and
accessories EXCEPT
batteries and sparking
plugs

Battery operated vehicles • Exempted from
for use in hotels, hospitals all taxes under the
and airports 5th schedule of
the East African
Community
Customs
Management
Act,2004
Motor vehicles specially • Exempted from
designed for refuse/ all taxes under the
garbage collection 5th schedule of
and disposal imported the East African
or purchased by local Community
authorities / persons Customs
contracted by local Management
authorities to collect Act,2004
refuse/ garbage
OIL AND GAS SECTOR
Equipment for use in • All taxes exempted

the oil and gas sector. under the fifth
These include: schedule of the
East African
1) Equipment and Community Customs
inputs and goods for Management
direct and exclusive Act upon
use in oil, gas or geo- recommendation
thermal exploration by a competent
and development EX- authority
CEPT motor vehicles.
EDUCATION AND SPORTS SECTOR
Educational materials. Annex D to • All Approved

the Florence Agreement Scientific educational
instruments or apparatus, intended articles and
exclusively for educational purposes or materials as
pure scientific research, provided: specified in
• That such scientific instruments or the Florence
apparatus are consigned to public agreement
or private scientific or educational are tax
institutions approved by the exempt
competent authorities of the importing under the
country for the purpose of duty- fifth schedule
free entry of these types of articles, of the East
and used under the control and African
responsibility of these institutions; Community

• That instruments or apparatus of Customs
equivalent scientific value are not Management
being manufactured in the country of Act.
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.
One motor vehicle for a rally driver and • Exempted
listed spare parts. from all taxes
under the
5th schedule
of the East
African
Community
Customs
Management
Act, 2004
One Motor cycle for racing/rally • Exempted
from all taxes
under the
5th schedule
of the East
African
Community
Customs
Management
Act, 2004
One Bicycle for racing/ rally • Exempted
from all taxes
under the
5th schedule
of the East
African
Community
Customs
Management
Act, 2004
• Exempted
from VAT
under the
VAT Act
Exercise books if locally
produced
• Imported
exercise
attract VAT

Mathematical • Exempted from VAT under
sets & the VAT Act. Import duty
geometry is 0% under East African
sets used in Community Common
educational External Tariff.
services
Woodworking • Exempted from VAT under

machines the VAT Act.
• Import duty is 0% under
East African Community
Common External Tariff.
Welding • Exempted from VAT under

machines the VAT Act.
Sewing • Exempted from VAT under

machines the VAT Act
Crayons, • Exempted from VAT under

coloured the VAT Act.
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.

Textbooks • Exempted from VAT under
the VAT Act.
Bible • Exempted from VAT under

the VAT Act.
Qu’rans • Exempted from VAT under

the VAT Act.
ENERGY SECTOR
Specialized • Exempted from all taxes
equipment for under the 5th schedule of
generation of the East African Community
solar and wind • Customs Management Act,
energy, including 2004
accessories
and deep cycle
batteries which
use and/ or
store power.
These include:
• Deep cycle
batteries
• Solar panels
• Direct current
charge
controllers
• Direct current
inverters

Listed Penstock • Exempted from VAT under
pipes for use the VAT Act.
in hydro power • Import duty is 0% instead of
projects 10% or 25% for one year.
Plastic bag bio • Exempted from all taxes

gas digesters under the 5th schedule of
2004
Water treatment • Exempted from all taxes

effluent plant under the 5th schedule of
2004
HOTEL AND TOURISM

Any of the following goods engraved or printed or marked with the hotel logo
imported by a licensed hotel for its use:
a) Washing machines • Exempted from all
Machine for washing clothes, taxes under the 5th
bed linens, etc. schedule of the East
African Community
Customs Management
Act, 2004
b) Kitchen ware • Exempted from all

Instruments and utensils taxes under the 5th
found in a kitchen, schedule of the East
particularly those associated African Community
with the preparation and Customs Management
serving of food. Act, 2004
c) Cookers • Exempted from all

Utensil, device, or apparatus taxes under the fifth
for cooking schedule of the East
African Community
Customs Management
Act, 2004

d) Fridges and freezers • Exempted from all
A box, room, or cabinet in taxes under the 5th
which food, drink, etc., are schedule of the East
kept cool by means of ice or African Community
mechanical refrigeration Customs Management
Act, 2004
e) Air conditioning systems • Exempted from all

A system used for cooling taxes under the 5th
and drying the air in a schedule of the East
building, room, etc. African Community
Customs Management
Act, 2004
f) Cutlery • Exempted from all

Edged or cutting taxes under the 5th
tools specifically schedule of the East
implements for African Community
cutting and eating Customs Management
food. Act, 2004
g) Televisions • Exempted from all

A device that receives taxes under the 5th
television signals and schedule of the East
reproduces them on a African Community
screen Customs Management
Act, 2004
h) Carpets • Exempted from all

A carpet is a textile taxes under the 5th
floor covering schedule of the East
typically consisting of African Community
an upper layer of pile Customs Management
attached to a backing Act, 2004
i) Furniture • Exempted from all

Large movable taxes under the 5th
equipment, such as schedule of the East
tables and chairs, African Community
used to make a house, Customs Management
Act, 2004
office, or other space
suitable for living or
working

j) Linen and curtains • Exempted from all
Linen: Sheets, taxes under the 5th
pillowcases, and duvet schedule of the East
covers African Community
Curtain: A piece of • Customs Management
material suspended Act, 2004
at the top to form a
covering or screen,
typically one of a pair
at a window
k) Gymnasium • Exempted from all
equipment taxes under the 5th
Exercise equipment schedule of the East
is any apparatus or African Community
device used during • Customs Management
physical activity to Act, 2004
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
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
10% for one year
when imported by a
licensed hotel.

4) Motor car for transportation
of tourists 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 fittings.
c) They are of a colour that
blends with the environment
where they operate and have a
clear and conspicuous label or
marking of
“Tourist vehicle.”
d) Any other condition that the
commissioner may impose.
Provided that duties shall be
payable upon disposal for other
use or change of use
5) Sightseeing buses • Exempted

a) Front facing comfortable from all taxes
reclining coach seats. under the
fifth schedule
b) Basic lavatory facilities. of the East
c) Provisions for first aid African
equipment, communication Community
fittings and luggage compartment. Customs
d) Seating capacity above 20. Management
Act, 2004
e) Any other condition the
commissioner may impose or
vary.
Provided that duties shall be
payable upon disposal for other
use or change of use.

6) Overland truck • Exempted
• High clearance for off road driving. from all taxes
under the
• Forward facing comfortable reclining fifth schedule
coach seats. of the East
• Inverter for charging electrical items. African
• Camping stocks, tents, kitchen and Community
food storage. Customs
• Windows for good all round view. Management
Act, 2004
• 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 change
of use
7) Tourism boats • Tourism boats
imported by
a licensed
tour operator
exempted
from taxes
under the
5th Schedule
of the EAC
CMA.
Duty free import of gadgets used in promoting security of public spaces
SECURITY SECTOR
1) Hand held metal detectors. • Exempted from all

Hand Held Metal Detectors are taxes under the 5th
used by Security, Police and schedule of the East
Military officers to carry out a African Community
non-invasive search of a person Customs Management
for metallic items Act, 2004
2) Walk through metal detectors • Exempted from all

Walk through” metal detectors taxes under the fifth
used for security screening schedule of the East
at access points in prisons, African Community
courthouses, and airports Customs Management
to detect concealed metal Act, 2004
weapons on a person’s body

3) CCTV cameras • Exempted from all
CCTV (closed-circuit television) taxes under the fifth
is a TV system in which signals schedule of the East
are not publicly distributed but African Community
are monitored, primarily Customs Management
Act, 2004
for surveillance and security
purposes
4) Bomb detectors. • Exempted from all
A bomb detector is a device taxes under the fifth
that enables non- destructive schedule of the East
inspection to determine whether African Community
a container contains explosive Customs Management
material. Explosive detectors Act, 2004
are commonly used at airports,
ports and for border control
5) Under carriage Mirror. • Exempted from all
An under vehicle inspection taxes under the fifth
system which is used to detect schedule of the East
threats such as bombs that are African Community
hidden underneath vehicles Customs Management
Act, 2004
HEALTH AND MEDICAL SECTOR

Any of the following goods engraved or printed or marked with the hospital logo
imported for use in licensed hospitals, as recommended by the Director of Medical
Services subject to such conditions and limitations as the Commissioner may
impose.
a) Shadow less • Exempted from all taxes
lamps for use under the 5th schedule
in operating of the East African
theaters Community Customs
HEALTH AND MEDICAL SECTOR
1. Any of the following goods engraved or printed or marked with the hospital logo
imported for use in licensed hospitals, as recommended by the Director of Medical
Services subject to such conditions and limitations as the Commissioner may impose
b) Blood • Exempted from all taxes under the

freezers 5th schedule of the East African
Community Customs Management
Act, 2004

c) Kitchen • Exempted from all taxes under the
ware and 5th schedule of the East African
equipment Community Customs Management
Act, 2004
d) Laundry • Exempted from all taxes under the

equipment 5th schedule of the East African
Act, 2004
e) Mattresses • Exempted from all taxes under the

and linen 5th schedule of the East African
Act, 2004
f) Bedside • Exempted from all taxes under the
screens 5th schedule of the East African
Act, 2004
g) Air • Exempted from all taxes under the

conditioners 5th schedule of the East African
Act, 2004
h) Water heating • Exempted from all taxes under the

equipment 5th schedule of the East African
Act, 2004
i) Trolleys and • Exempted from all taxes under the

stretchers 5th schedule of the East African
Act, 2004
j) Furniture • Exempted from all taxes under the

5th schedule of the East African
Act, 2004
2) Packaging • Exempted from all taxes under the

material for 5th schedule of the East African
medicines Community Customs Management
Act, 2004
3) Raw • Exempted from all taxes under the
materials for the 5th schedule of the East African
manufacture of Community Customs Management
medicaments Act, 2004

4) Examination • Exempted from all taxes under the
gloves for 5th schedule of the East African
laboratory and Community Customs Management
medical use. Act, 2004
5) Hospital • Exempted from excise duty under

furniture imported the Excise Duty Act.
by dealers for
supply to licensed
hospitals
6) Medical Autoclaves. Exempted from

A medical autoclave is a device VAT under the VAT
that uses steam to sterilize Act. Import duty
equipment and other objects. is 0% under East
African Community
This means that all bacteria, viruses, Common External
fungi, and spores are inactivated Tariff.
7) X-Ray Machines for medical use. • Exempted from
An X ray machine means an VAT under the
electrically powered device VAT Act. Import
producing x rays for the irradiation duty is 0% under
of a human being or an animal for a East African
therapeutic or diagnostic purpose Community
or for industrial use Common
External Tariff.
8) Chemical Analyzers for blood • Exempted from
analysis. VAT under the
A blood chemistry analyzer may be VAT Act. Import
used to test for many things, such duty is 0% under
as blood cell counts, therapeutic East African
drug monitoring, illegal drug use, Community
blood typing, protein analysis, Common
checking thyroid function, checking External Tariff.
for the presence of antibodies, and,
when used by patients at home, for
glucose or cholesterol monitoring
9) Ophthalmic instruments and • Exempted from
appliances. VAT under the
This device is used to examine the VAT Act. Import
eye. duty is 0% under
East African
Community
Common
External Tariff.

10) Dental drill equipment. • Exempted from
A dental drill or dentist’s drill is a VAT under the
small, high speed drill used during VAT Act. Import
dental procedures, usually to duty is 0% under
remove decay and shape tooth East African
structure prior to the insertion of Community
a filling or crown. A dental drill Common
may also be used in the cleaning External Tariff.
and shaping of root canals during
endodontic treatment, or to
remove old or temporary fillings or
crowns prior to the insertion of new
or permanent restorations.
11) Ultrasound machinery. • Exempted from

VAT under the
VAT Act. Import
An ultrasound machine makes duty is 0% under
images so that organs inside the East African
body can be examined. The machine Community
sends out high- frequency sound Common
waves, which reflect off body External Tariff.
structures. A computer receives
the waves and uses them to create
a picture. The test is done in the
ultrasound or radiology department.
12) Syringes. • Exempted from
A medical device that is used to inject VAT under the
fluid into, or withdraw fluid from, the VAT Act. Import
body. A medical syringe consists of a duty is 0% under
needle attached to a hollow cylinder East African
that is fitted with a sliding plunger. Community
Common
External Tariff.
13) Cardio graphic machine. • Exempted from
VAT under the
VAT Act. Import
A machine for recording the beating of duty is 0% under
the heart. East African
Community
Common
External Tariff.
14) Wheel chairs. • Exempted

from all taxes
under the5th
A wheelchair is a manually operated schedule of the
or power-driven device East African
designed primarily for use by an Community
individual with a mobility disability Customs
for the main purpose of indoor, or of Management
both indoor and outdoor, locomotion. Act, 2004.
15) Crutches Medical Definition of
Crutch. • Exempted from all
taxes under the 5th
Crutch: A wooden or metal schedule of the East
vertical prop that helps support African Community
a disabled person while he or she Customs
is walking. Arm crutches typically Management Act,
are metal and have a single shaft 2004.
with a projecting handgrip and a
cuff that closes around the arm.
Crutches usually have a nonskid
rubber tip on the bottom
16) Artificial parts of the body • Exempted from
(teeth, legs, joints). Dentures, VAT under the VAT
(also known as false teeth), are Act. Import duty
prosthetic devices constructed is 0% under East
to replace missing teeth; they are African Community
supported by the surrounding Common External
soft and hard tissues of the oral Tariff.
cavity. Conventional dentures are
removable (removable partial
denture or complete denture.
17) A prosthesis is an artificial • Exempted from
device/substitute or that replaces VAT under the VAT
a missing body part such as Act. Import duty
tooth, leg, arm, knee, facial bone, is 0% under East
another joint, hip etc which may African Community
be lost through trauma, disease, or Common External
congenital conditions Tariff.
18) Hearing aid. • Exempted from

A hearing aid is a small electronic VAT under the VAT
device that you wear in or Act. Import duty
behind your ear. It makes some is 0% under East
sounds louder so that a person African Community
with hearing loss can listen, Common External
communicate, and participate Tariff.
more fully in daily activities.
A hearing aid can help people
hear more in both quiet and noisy
situations
19) Medicated cotton • Exempted from VAT under

wool the VAT Act.

20) Medical bandage • Exempted from VAT under
the VAT Act
21) Refrigeration Exempted from all taxes under
equipment for dead the fifth schedule of the East
bodies for use in Hospital, African Community Customs
city council or funeral Management Act, 2004.
home”
22) Motor boat Import duty is 0% under East
ambulance African Community Common
External Tariff and exempted
from VAT under the provision
of the VAT Act.
23) Motor Vehicle Import duty is applicable at
ambulance a rate 0% under East African
Community Common External
Tariff and exempted from VAT
under the provision of the VAT
Act
24) Maternity (Mama) kit Import duty is applicable at a
rate 0% instead of 25% for one
year and exempted from VAT
25) Braille machines used Exempted from all taxes under

by the blind the fifth schedule of the East
26) Braille paper used by Exempted from all taxes under

the blind the fifth schedule of the East
27) Heating, ventilating Exempted from all taxes under

and air conditioning the fifth schedule of the East
equipment for African Community Customs
pharmaceutical Management Act, 2004.
manufacturers.
28)Tsetse fly traps Exempted from all taxes under

the fifth schedule of the East

29) Incinerators Exempted from all taxes under
equipment and materials the fifth schedule of the East
30) The supply of Exempted from VAT under

imported drugs and the provision of the VAT Act
medicines and attracts import duty of 0%
under the EAC CET
31) The supply of Are exempted from VAT under
contraceptives of all forms the provision of the VAT Act
e.g. condoms, birth control
pills, family planning
device
32) The supply of diapers Are exempted from VAT under

the provision of the VAT Act
33) Any supplies for Are exempted from all taxes

diagnosis, prevention, under the 5th schedule of the
treatment, and EAC CMA, 2004
management of
epidemics, pandemics,
and health hazards as
recommended by the
competent authority in the
Ministry responsible for
Health
CONSTRUCTION SECTOR
Item Description Tax incentive
Specialized vehicles • · The equipment is free
· Concrete Mixers – Self of import duty by tariff.
propelled • · VAT is deferrable for
· Concrete Pumps VAT registered companies
Earth Moving Machinery • · The equipment is free

· Excavators of import duty by tariff.
· Bull dozers • · VAT is deferrable for
VAT Registered Companies
· Angle Dozers
Cranes for Construction • The equipment is free of
import duty by tariff.
• VAT is deferrable for VAT
• Registered Companies

Scaffolding • When obtained from
the region of East
Africa, they shall be
exempted from import
duty.
Surveying Equipment • The equipment is free

• Global Positioning of import duty by tariff.
Systems (GPS) • VAT is payable
• Theodolites
• Line of site equipment
• Rangefinders They
are largely used by
road construction
firms, surveyors, oil
exploration, mining.
Goods Carrying vehicles - • Goods carrying vehicle
Tippers with gross weight
• Gross Vehicle Weight exceeding 5 tonnes
but not exceeding 20
• exceeding 5 tonnes tonnes import duty is
but not exceeding 20 10% for one year
tonnes.
• Goods carrying vehicle
• Gross Vehicle Weight with gross weight 20
exceeding 20 tonnes. tonnes and more is
free of import duty for
one year.
Temporary imports of • Taxes suspended and
Construction Machinery of a goods secured on
specialized nature for use in bond that is cancelled
the construction sector that upon re export.
is not listed above.
Terms and conditions as
specified in the East African
Community- Customs
apply.
Pipe line construction of oil • Inputs for use in the
and gas from Uganda to Dar- construction of the
Es -Salaam 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 • The supplies for the
equipment and inputs. use in hydropower
project are exempted
from VAT.
Regional Economic • Imports from the

Communities (RECs) Regional Economic
that include East African Communities are given
Community (EAC), preferential import
duty treatment.
Common Market for East and
Central Africa
(COMESA). Soon entering the
TRIPARTITE that will include
EAC, COMESA and SADC
(South African Development
Co- operation)
The country has industries for • Industries that produce
local inputs that are of high items such as cables,
quality and manufactured in cement, iron bars,
Uganda. pipes, nails, roofing
These items when procured sheets e.t.c
locally attract only local taxes.
Upcoming projects such • The project if funded

as Standard Gauge by donors shall have its
Railway (SGR) are offering inputs exempted from
opportunities in construction taxes under the East
sector. African Community
Customs Management
Act, 2004.
Pre-fabricated buildings for · VAT Deferrable for

factory use imported by pre- fabricated buildings for
registered manufacturers factory use.
or other entities such as
warehouse construction.

The supply of earth moving · VAT is applicable
equipment and machinery at 0% under the
for development of an VAT Act.
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
The supply of construction · VAT exempt

materials for development under the VAT Act
of an industrial park or free · Excise duty nil
zone to a developer of an
industrial park or free zone
whose investment is at least
fifty million United States
Dollars


Tax Incentives

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A Guide on INCENTIVES AVAILABLE

FOR INVESTORS IN UGANDA

5th Edition, August 2021

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 1

Developing Uganda Together.

SN INCENTIVES CONDITIONS FOR THE INCENTIVE

TAX INCENTIVES UNDER DOMESTIC TAXES

4 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 5

6 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 7

11. Compliant taxpayers 6% WHT exemption 12 months Where the

8 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 9

10 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

The investor must use

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 11

12 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 13

14 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 15

16 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

EXCISE DUTY ACT

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 17

18 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Agricultural • VAT Exempted when

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 19

Veterinary • •VAT Exempted when

20 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Heat Insulated Milk • Exempted from all taxes

Insulated tankers • Exempted from all taxes

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 21

22 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Fish, Crustaceans and • Exempted from all

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 23

The supply of irrigation • VAT Exempted when

Raw materials used in • Duty draw back i.e.

24 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Treads for cold retreading • Duty remission

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 25

Unassembled • Imported at import duty rate

26 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Scrap batteries • Remission of import duty rate of

Inputs used in • Duty remission to 0% under

Inputs for the • Duty remission to 0% under

Inputs for the • Duty remission to 0% under

Inputs for the • Duty remission to 0% under

A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION 27

Inputs for use in • Exempted from all taxes under

Iron and steel • Duty remission on inputs to

Glucose Syrup • Import duty is applicable at a

28 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Inputs imported • Duty remission to 0% for one

Roofing • Inputs for the manufacture of roofing

Wheat Grain • Import duty is applicable at a rate of

Barley • Import duty is applicable at a rate of

Aerosal cans • Duty remission to 0% instead of 10%

Organic • Duty remission to 0% instead of 10%

30 A GUIDE ON INCENTIVES AVAILABLE FOR INVESTORS IN UGANDA | 5TH EDITION

Textile • Duty remission to 0% instead of 10%

Inputs for • Duty remission to 0% for one year

Inputs for • Duty remission to 0% for one year

Inputs for • Granted duty remission rate of 0%