Investment Incentives in Uganda

The following are the investment incentives in Uganda

a) Investment Capital Allowances

  • Initial capital allowance on plant and machinery                   50-75%
  • Start up cost spread over 4 years                                          25% p.a.
  • Scientific research expenditure                                               100%
  • Training expenditure                                                             100%
  • Mineral exploration expenditure                                              100%
  • Initial Allowance on hotel, hospitals and Industrial buildings         20%
  • Deductible annual Allowances (depreciable assets)
  • Depreciation rates of assets range.                                       20-40%
  • Depreciation rate for Hotels, Industrial Buildings and Hospitals     5%

b) Duty and Tax free import of Plant & Machinery.

c) First Arrival Privileges in the form of duty exemptions for personal effects and motor vehicle (previously owned for at least 12 months) to all investors and expatriates coming to Uganda.

d) Export Promotion Incentives and Facilities

  • Manufacturing Under Bond.
  • Duty exemption on plant and machinery and other inputs
  • Stamp duty exemption
  • Duty draw back – a refund of all or part of any duty paid on materials, inputs imported to   produce for export
  • Withholding tax exemptions on plant & machinery, scholastic materials, human & animal drugs and raw materials.
  • Ten year tax holiday
  • Duty remission scheme for exporters involved in value addition


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