UIA DG WITH GLASSES

UIA woos German investors

Kampala, UGANDA: Uganda Investment Authority (UIA) hosted a twenty business man delegation from Germany who were in the country to seek information on how to invest in Uganda.

They were briefed by the Authority’s Acting Director General Lawrence Byensi who informed them that government has provided various fiscal incentives.

He said that this has been done through the respective tax laws which makes it non-discriminatory and accessible to both domestic and foreign investments.

“There are also sector specific especially in agriculture, transport, education, manufacturing and energy sectors in order  to encourage investment in those sectors and generate employment for nationals,” he said at the meeting held on Wednesday at the Authority’s head office on Lumumba avenue.

He told the delegation that there tax deductions that also include specific incentives in agro sector.

These include income tax deduction in the initial capital allowances (Accelerated depreciation), industrial building allowance and deductions

There are also special deductions research, training where 100% of the cost is allowed as deduction before corporation tax

He explained that there are also carry forward of losses that could be unlimited or uncapped.

Mr. Byensi pointed out that there also incentives in the manufacturing sector that include 10 years income tax holiday for exporters of finished consumer and capital goods (80% of production).

Others are value added tax deferment on plant and machinery at importation and zero import duty on plant and machinery utilized for setting up industry.

He added that there are also several industrial raw materials that can be imported at lower rates than those listed in the Common External Tariff (CET).

“Similar exemptions are also offered on inputs and equipment in the health, energy, mining, petroleum, and transport sectors,” he said.

He further pointed out government offered a 10 year tax holiday for developers investing at least US$ 50 million (foreign) and US$ 10 million (domestic) and this includes East African Community member states for investrors in the Industrial Park and Free zone development.

“A number of sector specific exemptions have been introduced to support the tourism and hospitality, health; mining and petroleum, leather and cotton industries,”.

This also includes investors in processing, manufacturing and assembly of listed items, as well as vocational institutes among others. These also benefit from a 10 year tax holiday for minimum of US$ 10m (foreign) and US$ 1m (for local) including members from the partner states of the East African Community (EAC).

He added that UIA supports investment by providing information on the investment opportunities, issuance of licenses and after care services.

“The Authority can also help investors in brokering joint venture partnerships, facilitation and enhancement of small and medium firms and acquisition of land for investment and development in the Industrial Parks,”. Mr. Byensi said that tourism specific vehicles are exempt from import taxes while hotel equipment , fixtures and furniture are exempt from taxes at importation

“Agro – processors may apply for income tax exemptions subject to certain conditions as indicated in the Income Tax Act and there is zero import duty on importation of Plant and Machinery for use in Agro Processing,” There is also value added deferment facility on plant and machinery available at importation while almost all agricultural inputs are exempt from import duty and VAT.

He told the delegation that investment opportunities in Uganda currently include value Addition to the natural redsources. Others are mineral beneficiation, Information and Communications Technology (ICT), Oil and Gas Sector and its support services, services sectors.

These include finance, education, health care, infrastructure, real estate, tourism in terms of accomodation, conferences, tour and travel among others.

He said that Ugandas exportable products include agro products like coffee, tea, cotton, fruits, horticultural products, fish, honey, dairy and poultry products, oil seeds and or animal and vegetable oils and cocoa beans.

Other exportable products include manufactured products potential speciaifically sugar, plastics and selected pharmaceuticals.

“Our major export markets include Kenya, United Arab Emirates, DR Congo, Sudan and Rwanda,”.

For further details, kindly contact

David Muwanga

Investment Executive-Media Relations

Office of the Director General

Uganda Investment Authority

Off: 0414301103, Mob: 0772552520

ENDS m