The Ugandan government has announced that domestic investors and start-up businesses will be exempted from income tax for three years.
The tax holiday takes effect at the start of the next financial year, starting July 1, 2025.
According to the Income Tax (Amendment) Bill 2025, tabled by the State Minister of Finance (General Duties), Henry Musasizi, the tax holiday will benefit Ugandan businesses registered with an investment capital not exceeding 500 million shillings (approximately 130,000 dollars).
The minister emphasized that the tax holiday is for all registered investments whose capital is below 500 million shillings.
Said the minister: “The intention is to help businesses to start and grow. We don’t want to see someone who has just started a business being approached by the Uganda Revenue Authority (tax collector) asking for taxes”.
The current tax law does not provide a blanket tax exemption for start-ups, with companies subject to a 30-percent corporate income tax rate except for those operating in strategic industries or in industrial parks.
According to the Investment Code (2019), a domestic investor also includes citizens of partner states in the East African Community.
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