PARTICULARS
Section 2(c) of the Income Tax Amendment Act. The Income Tax Act, in this Act, referred to as the principal Act, is amended in Section 21 in paragraph (ae) (vii), by inserting immediately aŁer the words “agricultural use” the word “or”;
PREVIOUS PROVISION
(vii) manufactures chemicals for agricultural use, industrial use, textiles, glassware, leather products, industrial machinery, electrical equipment, sanitary pads and for diapers.

AMENDMENT
(vii) manufactures chemicals for agricultural use or industrial use, textiles, glassware, leather products, industrial machinery, electrical equipment, sanitary pads and for diapers.

SIGNIFICANCE
Previously, the provision was interpreted as needing a taxpayer to be a manufacturer of chemicals for both agricultural and industrial use.
By inserting the word “or”, the amendment has provided clarity that in order for a taxpayer to benefit from the exemption, the taxpayer needs to be either a manufacturer of chemicals for agriculture or industrial use, and not both.

PARTICULARS
Section 3 of the Income Tax Amendment Act. Section 76 of the principal Act is amended in subsection (4), by substituting for paragraph (a) the following.

PREVIOUS PROVISION
(a) a transaction in which a company transfers its assets to another company that is controlled by the transferor or its shareholders following which the stock of the transferee is distributed.

AMENDMENT
(a) a transaction in which a person transfers their assets to another person, other than an individual controlled by the transferor or the shareholders following which the stock of the transferee is distributed;

SIGNIFICANCE
Roll-over relief is a mechanism that recognises that the overall control of an asset has not changed when transferred between entities under the same underlying ownership. This is to prevent unfair capital gains tax arising from such a transfer.
A person is defined to include an individual or a registered entity, which may include a partnership, or trust, among others.
Rollover relief has been extended to transfers between individuals and companies they control, not just between a company and another company under its control, as the previous version of the section was constructed.

PARTICULARS
Section 4 of the Income Tax Amendment Act. Section 86 of the principal Act is amended by inserting immediately aŁer subsection (4), the following—

AMENDMENT
“(5) This section shall not apply where a non-resident person is deriving income from providing digital services in Uganda to an associate in Uganda.
(6) Notwithstanding subsection (5), section 82 or 84 of this Act shall apply to the income of a
non-resident person derived from providing digital services in Uganda to an associate in Uganda.”

SIGNIFICANCE
Section 86 of the Income Tax provides for the taxation of non-residents providing Digital Services in Uganda.
This amendment requires that where a non-resident person is providing digital services to an associate (related party), their associate will have to withhold on the gross amount paid for the services under Section 82 on taxation on international payments at 15%, or Section 84 on taxation on payments to Non-Resident Contractors or Professionals at 15%.

PARTICULARS
Section 5 of the Income Tax Amendment Act. Schedule 2 to Principal Act Schedule 2 to the Principal Act is amended by inserting immediately aŁer “Independent Regulatory Board of the East African Power Pool” the following.

AMENDMENT
“International Atomic Energy Agency (IAEA)”

SIGNIFICANCE
The International Atomic Energy Agency has been added as a listed institution under Schedule 2, meaning that its income derived from Uganda is exempt under Section 21 of the Act.

THE VALUE ADDED TAX (AMENDMENT) ACT 2025

PARTICULARS
Section 2 of the Value Added Tax Amendment Act. Amendment of Schedule 2; (a) by insert- ing immediately aŁer “United Nations Entity for Gender Equality and the Empowerment of Women (UN Women)” The following—

AMENDMENT
United Nations related Agencies and specialised Agencies

SIGNIFICANCE
The purpose of this enacted amendment is to care for every other United Nations Agency not specifically mentioned, such as the United Nations Institute for Disarmament Research, and the United Nations Industrial Development Organisation, among others, and to provide for those that will be formed in the future.

PARTICULARS
Section 2 of the Value Added Tax Amendment Act. Amendment of Schedule 2; (b) by substituting for the words “International Atomic Agency (IAA)”

AMENDMENT
International Atomic Energy Agency (IAEA)

SIGNIFICANCE
This amendment will capture the new name of the International Atomic Energy Agency.

PARTICULARS
Section 3 of the Value Added Tax Amendment Act. Amendment of Schedule 3, Paragraph 1;
⦁ by substituting for subparagraph (v) the following
PREVIOUS PROVISION
(v) the supply of deep cycle batteries, composite lanterns, and raw materials for the manufacture of deep cycle batteries and composite lanterns;

AMENDMENT
“(v) the supply of deep cycle batteries, solar lanterns and raw materials for the manufacture of deep cycle batteries and solar lanterns;

SIGNIFICANCE
Composite lanterns have been removed from the list of exempt supplies and replaced with solar lanterns to promote access to clean and sustainable energy in Uganda.
This amendment will restrict the exemption to suppliers of solar lanterns since composite lanterns are not necessarily solar-powered.

PARTICULARS
Section 3 of the Value Added Tax Amendment Act. Amendment of Schedule 3 Paragraph 1;
⦁ by substituting for subparagraph (ai), the following—
PREVIOUS PROVISION
(ai) the supply of wet processing operations and garmenting, cotton lint, artificial fibres for blending; polyester staple fibre, viscose rayon fibre yam other than cotton yam, textile dyes and chemicals garment accessories, textile machinery spare parts, industrial consumables for textile production, textile manufacturing machinery and equipment.

AMENDMENT
ai) the supply of wet processing operations and garmenting, cotton lint, artificial fibres for blend- ing, polyester staple fibre, viscose rayon fibre, yarn, other than cotton yarn, textile dyes and chemicals, garment accessories, textile machinery spare parts, industrial consumables for textile production, textile manufacturing machinery and equipment.

SIGNIFICANCE
The amendment will correct the spelling of “yarn” and remove the semicolon after the word “blending” to provide for clarity.

PARTICULARS
Section 3 of the Value Added Tax Amendment Act. Amendment of Schedule 3 Paragraph 1;
⦁ by repealing subparagraph (ak);
PREVIOUS PROVISION
(ak) the supply of amendment assets for further value addition in Uganda

AMENDMENT
Repealed

SIGNIFICANCE
The supply of amendment assets for further value addition in Uganda is no longer an exempt supply for VAT purposes.

PARTICULARS
Section 3 of the Value Added Tax Amendment Act. Amendment of Schedule 3 Paragraph 1;
⦁ by inserting immediately aŁer subparagraph (az), the following

AMENDMENT
“(ba) the supply of biomass pellets”

SIGNIFICANCE
The supply of biomass pellets has been added to the list of exempt supplies for VAT purposes. This amendment will promote environmentally sustainable energy.

PARTICULARS
Section 4 of the Value Added Tax Amendment Act. Amendment of Schedule 4 Paragraph 1; by inserting immediately aŁer subparagraph (i), the following—

AMENDMENT
“(j) the supply of aircraft;

SIGNIFICANCE
The supply of aircraft has been added to the list of zero-rated supplies for VAT purposes. This amendment will promote the aircraft manufacturing industry in the country.

THE STAMP DUTY (AMENDMENT) ACT, 2o25

PARTICULARS
Section 2 of the Stamp Duty Amendment Act. Amendment of Schedule 2; (a) by substituting for item 5 the following

PREVIOUS PROVISION
5. AGREEMENT OR MEMORANDUM of an agreement except a sale-based financing agreement be- tween the vendor or borrower and a person licensed to carry on Islamic financial business; – UGX 15,ooo/-

AMENDMENT
“5. Agreement or memorandum of an agreement; – Nil

SIGNIFICANCE
The Stamp Duty Act has been amended to provide for Nil (zero) Stamp Duty on agreements or memorandum of agreement, following public concern over stamp duty being due on every
contract signed by a person in Uganda, including employment contracts and tenancy agreements.
This amendment is intended to facilitate the ease of transactions in the economy.

PARTICULARS
Section 2 of the Stamp Duty Amendment Act. Amendment of Schedule 2; (b) by substituting for item 42 the following

PREVIOUS PROVISION
42. (a) MORTGAGE DEED – of the total value. A mortgagor who gives a power of attorney to collect rents or a lease of the property mortgaged is deemed to give possession within the meaning of this item. – o.5%
(b) Where a collateral or auxiliary or additional or substituted security is given by way of further assurance where the principal or primary security is duly stamped. – UGX 15,ooo/-

AMENDMENT
“42. (a) Mortgage deed— of the total value. A mortgagor who gives a power of attorney to collect rent or a lease of the property mortgaged is deemed to give possession within the meaning of this item. – Nil
(b) where a collateral or auxiliary or additional or substituted security is given by way of further assurance where the principal or primary security is duly stamped. – Nil

SIGNIFICANCE
In order to make finance more accessible and cheaper for persons in Uganda, the Stamp Duty Act has been amended to provide for a Nil duty on mortgage deeds.

PARTICULARS
Section 2 of the Stamp Duty Amendment Act. Amendment of Schedule 2; (c) by substituting for item 43 the following

PREVIOUS PROVISION
43. MORTGAGE OF A CROP – including any instrument endorsement, note, attestation, certificate or entry not being PROTEST OF A BILL OF NOTE, made or signed by a notary public in the execution of the duties of his office or by other person lawfully acting as notary public. – UGX 15,ooo/-

AMENDMENT
43. Mortgage of a crop—including any instrument endorsement, note, attestation, certificate or entry not being protest of an amendment act of note, made or signed by a notary public in the execution of the duties of his or her office
or by any other person lawfully acting as a notary public. – Nil

SIGNIFICANCE
In order to make finance more accessible and cheaper for persons involved in farming, the Stamp Duty Act has been amended to provide for a Nil duty on a mortgage of a crop deed.

THE EXCISE DUTY (AMENDMENT) ACT, 2025

PARTICULARS
Section 2 of the Excise Duty Amendment Act. Amended the Excise Duty Act by inserting immediately aŁer Section 13 the following

AMENDMENT
“13A. Remission of duty paid on ex-factory goods.
⦁ A person liable to pay excise duty may apply to the Commissioner for the remission of any excise duty paid on damaged, expired or obsolete goods.
⦁ The application referred to in subsection (1), shall be accompanied by—
⦁ proof that the duty was paid on damaged, expired or obsolete goods, where applicable;
⦁ goods delivery documentation;
⦁ a report indicating the extent and the cause of the damage issued by a competent authority, in the case of damaged goods; and
⦁ any other document as the Minister may determine by regulations.
⦁ Where the Commissioner is satisfied that excise duty was paid on damaged, expired or obso- lete goods, the Commissioner shall—
⦁ apply the excise duty paid in reduction of any other duty due from the person liable to pay excise duty; or
⦁ at the written option of the person liable to pay excise duty, apply the excise duty paid on damaged, expired or obsolete goods in reduction of any outstanding liability of the person liable to pay excise duty with regard to other taxes not in dispute.”

SIGNIFICANCE
Through this amendment, a taxpayer who has paid excise duty to the URA may apply to the Commissioner General for the remission of that excise duty, if they can provide sufficient proof that the goods, on which excise duty was paid, have since been damaged, expired or become obsolete.
Once the application is approved upon presentation of supporting documentation, the taxpayer will receive a tax credit for the excise duty paid.
This is due to the fact that excise duty is an indirect tax intended to be borne by the final consumer; in the event that an excisable good cannot be consumed, any excise duty paid on such a good should be refunded.

PARTICULARS
Section 3 of the Excise Duty Amendment Act. Schedule 2 is amended; (a) by substituting for items 1 (a) and (b) the following.

PREVIOUS PROVISION
⦁ Cigarettes
⦁ Soft cup
⦁ Locally manufactured – Ugx 55,ooo per 1,ooo sticks
⦁ Imported – Ugx 75,ooo per 1,ooo sticks
⦁ Hinge Lid
⦁ Locally manufactured – Ugx 8o,ooo per 1,ooo sticks
⦁ Imported – Ugx 1oo,ooo per 1,ooo sticks

AMENDMENT
⦁ Cigarettes
⦁ Soft cup
⦁ Locally manufactured – Ugx 65,ooo per 1,ooo sticks
⦁ Imported – Ugx15o,ooo per 1,ooo sticks
⦁ Hinge Lid
⦁ Locally manufactured – Ugx 9o,ooo per 1,ooo sticks
⦁ Imported – Ugx 2oo,ooo per 1,ooo sticks

SIGNIFICANCE
This amendment will increase excise duty due on cigarettes, which will lead to a price increase. This is part of the effort to discourage the consumption of cigarettes by increasing their price.
PARTICULARS
Section 3 of the Excise Duty Amendment Act. Schedule 2 is amended; (b) by substituting for item 2 (b) the following.

PREVIOUS PROVISION
(b) Beer whose local raw material content, excluding water, is at least 75% by weight of its constit- uent – 3o% or Ugx 65o per litre, whichever is higher.

AMENDMENT
(b) Beer whose local raw material content, excluding water, is at least 75% by weight of its constituent – 3o% or Ugx 9oo per litre, whichever is higher”

SIGNIFICANCE
This amendment will increase the excise duty due on beer containing locally sourced raw materials, which will lead to a price increase.
This is part of the effort to discourage the consumption of beer due to its harmful effects.

PARTICULARS
Section 3 of the Excise Duty Amendment Act. Schedule 2 is amended; (c) in item 2, by re- pealing paragraph (c)

PREVIOUS PROVISION
(c) Beer produced from barley grown and malted in Uganda.

AMENDMENT
Repealed

SIGNIFICANCE
Excise duty on beer produced from barley grown and malted in Uganda has been removed since it is catered for under Paragraph (c) above.

PARTICULARS
Section 3 of the Excise Duty Amendment Act. Schedule 2 is amended; (d) by substituting for item 5 (b) the following.

PREVIOUS PROVISION
(b) Fruit juice and vegetable juice, except juice made from at least 3o% of pulp or at least 3o% juice by weight or volume of the total composition of the drink from fruits and vegetables locally grown
– 1o% or Ugx 25o per litre, whichever is higher.

AMENDMENT
(b) Fruit juice and vegetable juice, except juice made from at least 5o% of pulp from fruit and vegetables locally grown in Partner State – 1o% or Ugx 25o per litre, whichever is higher;

SIGNIFICANCE
A partner state is defined as a member country within the East African Community.
The amendment increases the percentage of pulp from fruit and vegetables locally grown within a partner state, required to be present in fruit and vegetable juice for it to be considered as exempt from excise duty under this provision.
The amendment maintains the excise duty due on fruit and vegetable juice that contains less than 5o% of pulp from fruit and vegetables locally grown in a Partner State.

PARTICULARS
Amendment of Cap 336 in Schedule 2 by substituting for item 3(a) the following;

PREVIOUS PROVISION
(a) Un-denatured spirits made from locally produced raw materials – 6o% or shs. 15oo per litre, whichever is higher

AMENDMENT
(a) Un-denatured spirits of alcoholic strength by volume of 8o% or more made from locally produced raw materials – 6o% or shs. 15oo per litre, whichever is higher;

SIGNIFICANCE
Before the amendment, the duty covered all strengths of un-denatured spirits made from local materials. The amendment restricts application to spirits that are 8o% alcohol or more.

PARTICULARS
Amendment of Cap 336 in Schedule 2 by substituting for item 3 (c)(i) the following;

PREVIOUS PROVISION
(c)(i) that are locally produced, of alcoholic strength by volume of less than 8o%; — 8o% or shs. 17oo per litre, whichever is higher

AMENDMENT
c)(i) that are locally produced of alcoholic strength by volume of less than 8o%; — 6o% or shs. 17oo per litre, whichever is higher;

SIGNIFICANCE
The amendment reduced the percentage excise duty applicable from 8o% to 6o%.

THE TAX PROCEDURES CODE (AMENDMENT) ACT, 2025

PARTICULARS
Section 2 of the Tax Procedures Code Amendment Act. Section 4 of the Act is amended by substituting for section 4 the following—

PREVIOUS PROVISION
4. Tax Identification Number
⦁ Upon registration, the Commissioner General shall issue to every person registered a TIN.
⦁ The Commissioner General shall issue one TIN to each person registered.
⦁ The TIN issued by the Commissioner General shall be used for tax purposes under all tax laws.
⦁ A person shall state that person’s TIN on any return, notice, communication, or other docu- ment furnished, lodged, or used for the purposes of a tax law.
⦁ Subject to subsection (6), a TIN is personal to the person to whom it has been issued and shall not be used by another person.
⦁ The TIN of a registered taxpayer may be used by a registered tax agent if –
⦁ the registered taxpayer has given written permission to the registered tax agent to use the TIN on their behalf; and
⦁ the registered tax agent uses the TIN only in respect of the tax affairs of the taxpayer.
⦁ The Commissioner General shall by notice in writing, cancel a TIN if satisfied that the person is deregistered for the purposes of all tax laws;
⦁ a TIN has been issued to the person under an identity that is not that person’s true identity; or
⦁ the person has been previously issued with a TIN that is still in force.
⦁ The Commissioner General may, at any time, by notice in writing, cancel the TIN issued to a person and issue the person with a new TIN.
⦁ A local authority, Government institution or regulatory body shall not issue a licence or any form of authorisation necessary for purposes of conducting any business in Uganda to any person who does not have a TIN including a tax identification number issued by foreign tax authorities with whom Uganda has a tax treaty or agreement for the exchange of information.
⦁ A local authority, Government institution or regulatory body shall not register an instrument that is required to pay stamp duty under the Stamp Duty Act unless the person lodging the instrument for registration has a TIN.

AMENDMENT
4. Tax identification number
⦁ For tax purposes, the following shall be used as tax identification numbers-
⦁ a national identification number issued by the National Identification Registration Authority under the Registration of Persons Act, in the case of an individual;
⦁ a registration number issued by the Uganda Registration Services Bureau, in the case of a per- son who is a non-individual; and a tax identification number issued by a foreign tax authority with whom Uganda has a tax treaty or agreement for the exchange of information.
⦁ The Uganda Registration Services Bureau shall establish and maintain a centralised register of all non-individuals registered, incorporated or carrying on business in Uganda.
⦁ A person shall state his or her national identification number in the case of an individual, or registration number in the case of a non-individual, or tax identification number issued by a foreign tax authority with whom Uganda has a tax treaty or agreement for the exchange of information, on any return, notice, communication or other document furnished, lodged or used for the purposes of a tax law.
⦁ A local authority, Government institution or regulatory body shall not issue a licence or any form of authorisation necessary for purposes of conducting any business in Uganda to any person who does not have a national identification number, in the case of an individual, or a registration number in the case of a non-individual, or a tax identification number issued by a foreign tax authority with whom Uganda has a tax treaty or agreement for the exchange of information.
⦁ A local authority, Government institution or regulatory body shall not register an instrument required to pay stamp duty under the Stamp Duty Act, unless the person lodging the instrument for registration has a national identification number, in the case of an individual or a registration number in the case of a non-individual or a tax identification number issued by a foreign tax authority with whom Uganda has a tax treaty or agreement for the exchange of information.
⦁ The Minister shall, by regulations, prescribe the procedure and requirements for registering and issuing registration numbers to non-individuals.

SIGNIFICANCE
One of the pillars of tax administration is to have a full and complete tax register. This means that the tax register should be able to capture every individual or entity that by virtue of its activities qualifies to be a taxpayer.
This amendment by-passes the procedural bottlenecks and additional measures that hinder the recreation of a full and complete tax register. The use of BRNs and NINs for tax identification purposes will enable the URA to effectively identify taxpayers and ensure their compliance more efficiently.
The Minister for Finance Planning and Economic Development is required to issue regulations to prescribe the procedure and requirements for registering and issuing registration numbers to non-individuals such as companies, partnerships, trusts, among others by Uganda Registration Services Bureau, in an attempt to incorporate and harmonize the current requirements for obtaining a TIN.

PARTICULARS
Section 3 of the Tax Procedures Code Amendment Act. Principal Act is amended by insert- ing immediately aŁer section 47A the following

AMENDMENT
47B. Waiver of interest and penalty on payment of principal tax
⦁ Any interest and penalty outstanding as at 3oth June, 2o24, shall be waived where the taxpayer pays the principal tax by 3oth June, 2o26.
⦁ Where the taxpayer pays part of the principal tax outstanding as at 3oth June, 2o24 by 3oth June, 2o26, the payment of interest and penalty shall be waived on a pro-rata basis.
⦁ For avoidance of doubt, subsections (1) and (2) shall apply to the interest that accrues on the principal tax from 1st July 2o24 to the date the tax payer pays the principal tax.

SIGNIFICANCE
Provides for waiver of interest and penalty outstanding as of 3oth June 2o24, for the taxpayers who pay their outstanding principal taxes by 3oth June 2o26.
These fall under a tax amnesty program that has been subject to changes and renewal over the years. The aim of this program is to expedite tax collection and to incentivise taxpayers to clear their outstanding tax liabilities with the award of a waiver of penalties and interests as an incentive.
Taxpayers will be required to reconcile their ledgers with URA to determine any outstanding principal tax, and pay the same before 3oth June 2o26, should they wish to benefit from the enacted waiver of interest and penalties.

PARTICULARS
Section 4 of the Tax Procedures Code Amendment Act. Section 93 of the Principal Act is amended; (a) in subsection (1), by substituting for the words “tax due on the goods or ser- vices, or four hundred currency points, whichever is higher.”, the words “double the tax due on the goods or services.

PREVIOUS PROVISION
⦁ A taxpayer specified under section 8o(2) who does not use an electronic fiscal device is liable to pay a penal tax equivalent to the tax due on the goods or services, or four hundred currency points, whichever is higher.

AMENDMENT
⦁ A taxpayer specified under section 8o(2) who does not use an electronic fiscal device is liable to pay a penal tax equivalent to the double the tax due on the goods or services.

SIGNIFICANCE
This amendment changes the penalty for failure to use an electronic receipt machine to record the sale of goods or services to double the tax due on the goods or services.
The tax due on the goods or services would, in the case of VAT, be 18% of the gross value of the goods or services multiplied by two.
There is a need for this amendment to be changed to refer to the correct section of the Tax Procedures Code Act Cap 343, as it refers to an in-existent Section 8o(2).

PARTICULARS
Section 4 of the Tax Procedures Code Amendment Act. Section 93 of the Principal Act is amended; (b) in subsection (2), by substituting for the words “tax due on the goods or ser- vices or three hundred currency points, whichever is higher,” the words “double the tax due on the goods or services.

PREVIOUS PROVISION
⦁ A taxpayer specified under section 8o(2) who does not issue an e-invoice or e-receipt for goods or services, or who tampers with an electronic fiscal device, is liable to pay a penal tax equivalent to the tax due on the goods or services or three hundred currency points, whichever is higher.

AMENDMENT
(2) A taxpayer specified under section 8o(2) who does not issue an e-invoice or e-receipt for goods or services, or who tampers with an electronic fiscal device, is liable to pay a penal tax equivalent to the double the tax due on the goods or services.

SIGNIFICANCE
This amendment changes the penalty for failure to issue an e-invoice or e-receipt for a sale of goods or services to double the tax due on the goods.
The tax due on the goods or services would, in this case of VAT, be 18% of the gross value of the goods or services multiplied by two.
There is a need for this amendment to be changed to refer to the correct section of the Tax Procedures Code Act Cap 343, as it refers to an in-existent Section 8o(2).

PARTICULARS
Section 5 of the Tax Procedures Code Amendment Act. The Principal Act is amended by inserting immediately aŁer Section 93 the following Section 93A

AMENDMENT
“93A. Gaming and betting centralised payments gateway system
(1) An operator of a casino, gaming or betting activity shall only receive a wager or money staked and only make payouts through the gaming and betting centralised payments gateway system licensed by the Bank of Uganda under the National Payment Systems Act.
(2) The gaming and betting centralised payments gateway system shall be linked to the Uganda Revenue Authority electronic notice system.

SIGNIFICANCE
This provision establishes the establishment of a centralised gaming or betting payments gateway system through which all gaming or betting winnings are paid.
This poses various risks and compliance obligations on the system operator, the Bank of Uganda and gaming or betting companies operating in Uganda.

The cybersecurity strengths of such a system remain to be seen in Uganda, in light of the Bank of Uganda’s centralised system being the victim of various cybersecurity attacks and suffering severe losses.
However, by streamlining gaming and betting payouts through a centralised gateway, the amendment will minimise the risk of tax evasion and illicit financial inflows in the country.
This new measure, while it may attempt to minimise illicit cash flows, may not adequately address the proliferation of internet betting and gaming over the internet and does not adequately cover informal betting and gaming activities.

PARTICULARS
Section 5 of the Tax Procedures Code Amendment Act. The Principal Act is amended by inserting immediately aŁer Section 93 the following Section 93B

AMENDMENT
93B. Penal tax relating to gaming and betting centralised payments gateway system.
An operator of a casino, gaming or betting activity who does not use or is not integrated with the gaming and betting centralised payments gateway system is liable to pay a penal tax equivalent to double the gaming or withholding tax due or five thousand five hundred currency points, whichever is higher.

SIGNIFICANCE
This amendment, in line with the above insertion, seeks to impose penalties on gaming or betting operators that do not pay out winnings through the centralized payments gateway system established above.
The penalty would be double the gaming or withholding tax due from the payout (15% of the winnings for WHT) or UGX 11o,ooo,ooo/-, whichever is higher.
For example, failure to use the system to payout a winning of UGX 1,ooo/- would, with this amendment, attract a penalty of UGX 11o,ooo,ooo/-.
The extent of application, monitoring, enforcement, and collection of the penal tax enacted under this provision remains to be seen. While the formal operators can be seen as easy targets for this amendment, other informal operators and those that operate online and have no physical presence in Uganda may be harder targets.

PARTICULARS
Section 5 of the Tax Procedures Code Amendment Act. The Principal Act is amended by inserting immediately aŁer Section 93 the following Section 93C

AMENDMENT
93C. Failure to comply with requirements for tax exemption
⦁ A taxpayer exempted from tax under a tax law shall at all times maintain the requirements required for the taxpayer to be granted an exemption under the tax law.
⦁ A taxpayer that fails to comply with subsection (1) shall be liable to pay the tax due for the period for which the taxpayer fails to maintain the requirements required for the taxpayer to be granted an exemption under the tax law.
⦁ For the purposes of subsection (2), the tax due shall be paid personally by the taxpayer who failed to maintain the exemption requirements.”

SIGNIFICANCE
Previously, taxpayers who have a tax exemption confirmed by URA have been forgiven should they fail to comply with a requirement of the exemption, and asked to reconcile their obligations accordingly.
Moving forward, should this amendment be passed, the URA has a provision within the law to revoke and punish a taxpayer for non-compliance with a requirement for an exemption.
Examples of these exemptions include: an income tax exemption and a withholding tax exemption, among others.
This amendment will cut across taxpayers exempted under various provisions of the tax laws.

AMENDMENTS THAT WERE NOT PASSED
In the proposed Amendment Bills, the VAT Amendment Bill initially included a provision aimed at preventing importers from splitting what would ordinarily be a single consignment into multiple consignments solely to avoid paying VAT on importation. This provision was omitted from the final Act.
Similarly, in the Excise Duty Amendment Bill, the proposal to increase excise duty on petrol and diesel by UGX 1oo per litre was not passed into the Act. Also rejected was an amendment to expand the list of plastic products subject to excise duty to include items such as plastic bags (kavera), while exempting plastics used in the manufacture of essential goods such as food, juice, coffee, and sanitary pads.