Service Information

The objective of export incentives in Uganda, is to compensate exporters for the infrastructural inadequacies and the cost of bureacratic inertia. The incentives are also intended to level the playing field as much as possible to render Uganda's exports competitive.

Currently the following incentives are operational;

1.1 Foreign Exchange Liberalization

The foreign exchange regime is fully liberalized and exporters are entitled to retain 100% of their foreign exchange earnings accruing from their export transactions. - Contact Bank of Uganda or any commercial bank for details

1.2 Duty and VAT exemptions

There are no taxes charged on exports (zero rated). This is meant to reduce costs for the exporters and to make exports from Uganda more competitive - Refer to Uganda Revenue Authority

1.3 Market Access

The Government of Uganda strongly supports global economic integration as it increases volume of trade as well as offers other economic opportunities. Because of our membership, Uganda’s exports qualify for preferential tariff rates in COMESA, EAC. In addition Ugandan products enter the European Union and USA markets duty and quota free under the Cotonou Agreement (ACP – EU) and the African Growth and Opportunity Act (AGOA) initiatives respectively. - For details refer to Trade Agreements Page

1.4 Value Added Tax (VAT) on Exports

All exports of goods and services are zero rated for VAT. However, exporters are required to be VAT registered. This enables them to re-claim VAT expended on all inputs used in the process of producing and processing exports. - Contact Uganda Revenue Authority

1.5 Duty Drawback

The rationale for duty drawback is to enable manufacturers and other exporters to compete in foreign markets without the handicap of including costs of imported inputs in the final export price, the duty paid on imported inputs. This allows exports to draw back up to 100% duties paid on materials inputs imported to produce for export. - Contact Uganda Revenue Authority

1.6 Manufacturing under Bond

This scheme allows manufacturers to seek custom license to hold and use imported raw materials intended for manufacture for export in secured places without payment of taxes. It makes available working capital, which would have been tied up through paying duties immediately after importation. - Contact Uganda Revenue Authority

1.7 Others

Other incentives are available under the Investment Code as administered under the Income Tax Act 1997, by Uganda Revenue Authority for export oriented investment projects. - Contact Uganda Revenue Authority

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