Global Daily Tax News, Uganda Releases New FY2024-25 Budget, (Jun 17, 2024)

Uganda announced new tax incentives for the production of electric vehicles, in its Budget released June 13.

The Budget announces a value-added tax exemption for the supply of electric motorcycles and for electric vehicles manufactured or assembled in Uganda. Further, charging facilities and related services will be exempt.

Income tax holidays will be offered to companies engaged in the manufacture or assembly of electric vehicles, electric batteries, or electric vehicle charging equipment.

Further, income tax holidays will be granted to those establishing medical facilities or hospitals.

The Budget says the Government will also introduce a 10 percent withholding tax on commission paid to payment services providers and "FinTech agents".

Further, the Budget announces that the provision of taxable goods or services by an employer to an employee will be taxable from next financial year.

A capital gains tax exemption will be introduced for the sale of equity holdings or holdings in venture capital funds regulated by the Capital Markets Authority, the Budget says.

Finally, the Government has announced an extension to an amnesty scheme on tax arrears outstanding as of June 2023. Taxpayers will benefit from a waiver of interest and penalties providing payment is made between July and December 2024, the Government said.