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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).



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May 04, 2016
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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
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tax exemption
by: Kwebiha Muzamil

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

Apr 09, 2015
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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
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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
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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
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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

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