Written by: Timothy Masembe| Isaac Walukagga | Flavia Suubo
The Head of State on the 2nd June 2022 assented to a number of amendments to the country’s tax regime. Some of these changes have far reaching ramifications to Foreign Investors, Tax Practitioners, and the Business Community generally. The changes shall take effect on the 1st July 2022.
We set out below a summary of the amendments to the different tax laws.
Transacting online for work, school, banking, or pleasure, and therefore exchanging personal information, has never been more pronounced than today. Social distancing brought about by the COVID-19 pandemic has exacerbated reliance on the internet. As a result, cybercrime is a great threat and the encroachment to the right to privacy of information is heightened each day.
The Tax Amendment Bills, 2021 that were assented to by the President on 29th May 2021 came into force on 1st July 2021. The amendments are geared toward improving tax administration, reducing tax leakages, and enhancing revenues collected by the Tax Authority.
The purpose of this Alert, as set out below, is to summarize the key provisions of the amendments and their potential effect on taxpayers.
The Income Tax (Amendment) Act, 2021 introduces the following changes to The Income Tax Act (Cap 340).
COURT OF APPEAL CIVIL APPEAL NO. 219 OF 2013 – NECTA (U) LTD AND JOHN NDYABAGYE VS CRANE BANK LIMITED.
The Court of Appeal has revisited and emphasized various aspects in regard to validity of mortgages, execution and attestation of mortgage deeds. Court emphasized obligations of both the mortgagor and mortgagee in that respect thus widening the scope of the mortgagee’s inquiry into the borrower’s constitutional documents to ascertain whether the relevant authorizations have been duly obtained.
Court of Appeal Civil Appeal No. 281 Of 2016; Bank of Uganda Vs Joseph Kibuuka & 4 Others.
The Court of Appeal of Uganda (the “Court”) has reasserted the unfettered right of an employer to terminate an employment relationship without a reason by either giving the employee notice or paying in lieu of notice.
Timothy Masembe Kanyerezi and Alex Samson Ntale of M/s MMAKS Advocates represented Bank of Uganda (the “Bank”) in this matter.
The Trademarks Regulations No.58 of 2012 (the Regulations) passed under the Trademarks Act No.17, 2010 (the Act) were recently amended by the Trademark (Amendment) Regulations No. 9 of 2021 (the Amendment). The Amendment is commendable as it bridges gaps in many practical aspects of the law. It brings changes to twenty-six (26) provisions of the Regulations with the most notable being operationalization of the Register of agents, introduction of an IP journal, and payment for extension of time.
The record-breaking rise in water levels of Lake Victoria has left many residents and business owners on its shores in fear. The rise, attributed to increased rainfall has wrecked several homes, farms and businesses.
In response to this, Government of Uganda through National Environment Management Authority (the “NEMA”) has moved to evict encroachers who are within the protection zones of wetlands, shorelines and forest reserves.
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.
In March this year, just as Uganda was grappling with the early days of the COVID-19-enforced lockdown, the Uganda Retirement Benefits Regulatory Authority (URBRA) issued new regulations, the Uganda Retirement Benefits Regulatory Authority (Management and Operation of Retirement Benefits Schemes) Regulations, S. I. No. 43 of 2020.
Operators in the telecommunications sector have been notified by the regulator, the Uganda Communications Commission (“UCC”), that effective 1st July 2020, the new licensing framework will come into force.
The new licensing framework introduces the following key licenses:
• NTO – National Telecom Operator license, covering telecom infrastructure and services operations across Uganda;
SOPHIE NAKITENDE VS MABU COMMODITIES LIMITED - HIGH COURT CIVIL SUIT NO. 117 OF 2016
The High Court in Uganda has pragmatically revisited the Landlord - Tenant relationship by faulting a Landlord’s arbitrary use of force to seize a tenant’s trading stock and lock up premises for alleged non-payment of rent without a written Tenancy Agreement in place or a lawful court order.
Mr. Isaac Walukagga of M/s MMAKS Advocates represented Ms. Sophie Nakitende (“the Tenant”) in this matter.
PROPOSED AMENDMENTS TO THE TAX LEGISLATION IN UGANDA -TAX AMENDMENT (BILLS), 2020
The Hon. Minister of Finance, Planning and Economic Development presented to Parliament the Tax Amendment Bills 2020 on 31st March 2020 with proposed changes to Income Tax, Value Added Tax, Excise Duty and Stamp Duty. We summarize the key proposed changes in this Alert.
INCOME TAX (AMENDMENT) BILL, 2020.
a) Minimum tax payable by a loss making person
The COVD-19 Pandemic has affected various aspects of business world over. This is a compilation of frequently asked questions in relation to the legal implications of COVID-19 in Uganda in the areas of;
B. REAL ESTATE & CONSTRUCTION
F. GENERAL QUERIES
G. DATA PROTECTION
I. BANKING & FINANCE
K. CYBER SECURITY
The Security Interest in Movable Property Act, 2019 (the ‘’Act’’) and the Security Interest in Movable Property Regulations, 2019 (the ‘’Regulations’’) came into force on 30th May 2019. This Act is one of the most significant statutes to impact the taking of security in Uganda.
The Act is far reaching as it requires many types of existing securities that have already been registered to be re-registered under the Act for the security to be effective against a liquidator, administrator or third parties.
The Public Health (Control of Covid-19) Rules & The Public Health (Prohibition of Entry into Uganda) Order
As of 25th March 2020 Uganda had registered 15 confirmed cases of COVID-19, which number is expected to increase, in response to which The Government of Uganda has issued two (2) Corvid-19 focused Statutory Instruments, i.e., The Public Health (Control of Covid-19) Rules, 2020 SI No.52 of 2020 and The Public Health (Prohibition of Entry into Uganda) Order, 2020, SI No.53 of 2020