Investment Allowances — Capital Deductions
| Asset Category | Initial Allowance | Annual Wear and Tear |
|---|---|---|
| Plant and machinery (manufacturing) | 75% | 25% reducing balance |
| Plant and machinery (other) | 50% | 25% reducing balance |
| Computers and IT equipment | 50% | 40% reducing balance |
| Industrial buildings | 20% | 5% straight line |
Sector-Specific Tax Incentives Uganda
Manufacturing
- New manufacturers outside Kampala and Wakiso — 5-year income tax holiday
- Machinery imported for manufacturing exempt from import duties
- Raw materials zero-rated for VAT
Agribusiness
- Agricultural machinery exempt from import duty
- Seeds, fertilisers, pesticides zero-rated for VAT
Export Processing Zones
- 10-year income tax holiday for EPZ companies
- Exemption from customs duties on imported inputs and machinery
Tourism
- New tourism businesses outside Kampala — 5-year income tax holiday
How to Access Tax Incentives
Most incentives apply automatically once qualifying criteria are met. Some require registration with Uganda Investment Authority (UIA) or application to URA for specific exemption certificates.
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