Articles from Commercial Transactions

Introduction 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.

  INTRODUCTION 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. INCOME TAX The Income Tax (Amendment) Act, 2021 introduces the following changes to The Income Tax Act (Cap 340).

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 Under the now repealed item 27, 30 and item 33 of the 2014 Stamp Duty Amendment Act, stamp duty of 0.5% of the value of the facility was payable on debentures, equitable mortgages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.

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;

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; A. EMPLOYMENT B. REAL ESTATE & CONSTRUCTION C. CORPORATE D. INSURANCE E. COMPETITION F. GENERAL QUERIES G. DATA PROTECTION H. LITIGATION I. BANKING & FINANCE J. TAX K. CYBER SECURITY

Regulatory Environment Incorporating/ Registering a Company: Investment vehicles in Uganda take on various forms including among others single member companies, private limited liability companies, incorporated and unincorporated joint ventures, partnerships and trusts. The most common vehicle for investment is the private limited liability company.

A Mauritian company has sued the Uganda Revenue Authority (URA) seeking a declaration that the assessment raised against them is illegal. The Plaintiff received dividends from a Ugandan company with tax withheld at 10% as a benefit under the Mauritius Uganda Double Taxation Agreement (DTA), instead of at the usual withholding tax rate of 15%. Following a request for information by URA, it came to light that the Mauritian entity was held entirely by a Kenyan resident. The Mauritian company's only economic activity in Mauritius was to hold the shares in the Ugandan company.