Office of the Hon. State Minister of Finance · Investment & Privatization · Uganda

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IN
What tax incentives apply to a $10M textile manufacturing investment in Eastern Uganda?
A
A textile investment of that scale in Eastern Uganda typically qualifies for:

1. 10-year corporate income tax holiday under the Income Tax Act (investor licensed by UIA, export-oriented, minimum capital threshold met).
2. Zero-rated VAT on imported plant and machinery for the first 5 years.
3. Accelerated capital allowances on industrial buildings (up to 50% in year one).
4. Duty exemption on raw cotton inputs under the EAC Common External Tariff preferences.

Eligibility is confirmed via a UIA investment licence and URA incentive certificate.
Income Tax Act Cap. 340Investment Code Act 2019UIA Incentive Schedule
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Ministry of Finance, Planning & Economic Dev.
Uganda Investment Authority (UIA)
Uganda Revenue Authority (URA)
Uganda Law Reform Commission
Bank of Uganda
Privatisation & Utility Sector Reform

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