Find visitors' favorite businesstravel Hotels And.... Book your best!

Uganda NGO's and taxation

Question What tax exemptions are NOG's entitled to especially with regard to witholding tax and import duties?

Answer:

The NGO sector in Uganda is governed by a number of legal, regulatory and policy framework which clearly outline the process of registering an NGO and the necessary fees charged. The following are important to take note of, one of legal frameworks governing the NGO sector is the Income Tax Act 1997.


Uganda’s Income Tax Act provides that an organization is exempt from paying income tax if it falls within the definition of “exempt organization” under Section 2(bb) of the Income Tax Act and has been issued a formal ruling from the Tax Commissioner qualifying it as an exempt organization. The Income Tax Act defines an exempt organization as a company, institution, or irrevocable trust that is:



  • an amateur sporting association;

  • a religious, charitable, or educational institution of a public character; or

  • a trade union, employees’ association, an association of employers registered under any law of Uganda, or an association established for the purpose of promoting farming, mining, tourism, manufacturing, or commerce and industry in Uganda.


All income of an exempt organization is free from income tax, with the exception of property income received. Rental income of immovable property, however, may be exempt if it is used by the lessee exclusively for the activities of the organization specified in the Act.


In addition, business income received by an NGO that is not related to the function constituting the basis of the organization’s existence is subject to tax (Income Tax Act S 21(f)).


For NGOs providing social welfare services, medical services and agricultural services the foreign grants they receive are exempt from Value Added Tax (VAT). Certain supplies are exempt from VAT, including: unprocessed foodstuffs and agricultural products; educational, medical, dental or nursing services; social welfare services; and medical equipment (VAT Act. Schedule 2, Section 19).



Comments for Uganda NGO's and taxation

Average Rating starstarstarstarstar

Click here to add your own comments

May 04, 2016
Rating
starstarstarstarstar
tax exemption of employees of ngos
by: Anonymous

Tax Question:
Do employees of ngos get income tax deductions

Answer:
Yes, it is deductable if they are being paid salaries and organization is Tax registered.

The income tax in this case is Pay as You Earn (PAYE).

Feb 07, 2016
Rating
starstarstarstarstar
tax exemption
by: Kwebiha Muzamil

If the donor wants to send us a vehicle how do we aquire a tax exemption?

Apr 09, 2015
Rating
starstarstarstarstar
Good to read
by: Charles A. Randall

just what i was looking for and i am looking forward to reading your other posts soon!
Great pizza

May 07, 2014
Rating
starstarstarstarstar
Tax exception
by: Ssozi Bagenda .C.

Help me to know the process to register for Tax exception in Uganda as requested by our Organizational Donor before transferring funds we have to be with a certificate.

May 07, 2014
Rating
starstarstarstarstar
Tax exception
by: Ssozi Bagenda .C.

Help me to know the process to register for Tax exception in Uganda as requested by our Organizational Donor before transferring funds we have to be with a certificate.

Jun 10, 2011
Rating
starstarstarstarstar
research
by: Anonymous

i would love to get the contact of a private zoo along entebbe road. please let me know soon. Email: denn23@live.com

Click here to add your own comments

Return to Frequently Asked Questions about Uganda Taxes & News.



Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page

then...

feel free to ask our business travel consultants.





Book a Prisons & Correctional
Charity Tour


Farmland for Sale
Prime Commercial Property
Entebbe Rd Land 4 Sale
Over 20 Farmland Parcels
Property & Plots of Land

Uganda Online SuperMarket
africaug.com
Online SuperMarket

Uganda Coffee Safari
Book My Coffee Tour

Uganda Honey
Uganda HoneyComb

Subscribe to our Business Travel Newsletter


Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Africa Uganda Business Travel News Digest.

Hotel Booking

Car RentalCar Hire

Africa Uganda Shipping & Handling ServicesShipping & Handling Services


Our Sponsorship Policy


Apple Guavas available
Africa Uganda Plants GuideAfrica Plants Guide

Charity Investment Guide
Changing Lives

Africa Uganda SMS Guide
Africa Bulk SMS

Poultry Investment Guide
Poultry Business Guide

Related Pages



Uganda Hotels Directory

Uganda Hotels Booking Guide


Houses U can buy Uganda Real Estate Guide Industrial/Farmland Deals

Uganda Real Estates Guide


The Mountain Gorilla

Uganda Safari Guide

Uganda Weather Today





Book My Hotel

Please note that all fields followed by an asterisk must be filled in.
YES
NO
YES
NO

Please enter the word that you see below.

  



Uganda Currency

Ex-guide