WAIVING STAMP DUTY ON DEBENTURES, EQUITABLE MORTGAGES AND FURTHER CHARGES

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WAIVING STAMP DUTY ON DEBENTURES, EQUITABLE MORTGAGES AND FURTHER CHARGES

Written: 10 Jul 2020
Categorised under: Legal Alerts
Also related to these departments: Commercial Transactions

The Stamp Duty (Amendment) Act 2020 which came into force on 1st July 2020 has revised the rate of stamp duty payable on debentures, equitable mortgages and further charges

Effective 1st July 2020, stamp duty has been waived on debentures, equitable mortgages and further charges. Previously, a stamp duty of 0.5% was payable on debentures. Under the now repealed item 27, 30 and item 33 of the 2014 Stamp Duty Amendment Act, stamp duty of 0.5% of the value of the facility was payable on debentures, equitable mortgages and further charges.

The stamp duty payable on an instrument for all loans is now nil compared to the now repealed item 37 of the 2014 Stamp Duty Amendment Act for which nil stamp duty applied only to instruments for loans not exceeding Uganda Shillings Three Million.

Given the current situation in light of the COVID19, the aim is to make it less financially burdensome for companies to borrow and thereby facilitate economic transactions.