Income tax primarily relates to profits or gains arising from business activities, property ownership and employment. While there are general principles applied in determining what is taxable, overall, a tax rate is applied to a gain. In this regard, items designated for business otherwise referred to as stock in trade are pivotal in determining whether there is a gain or not. Therefore, there is a distinction between assets held for a business, investments which yield taxable income and private property the sale of which is conventionally agreed should not be taxed. The kind of private property which should not be…
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Interest is defined by the Oxford Dictionary as money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt. Interest is a significant factor in any economy, be it in the public or private sector. It takes a key role for the simple reason that any sizeable economy, with the most basic elements of sophistication, is catalysed by credit. The provision of most goods or services relies on the assurance of payment at a future date. The providers of those services often have to borrow to produce. The cost of…
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Birungyi, Barata and Associates (BBA), a Ugandan tax advisory and tax law firm has been named among Uganda’s top 12 tax law firms and consultancies in the 2024 edition of ITR World Tax⏤ a comprehensive guide to the world’s leading tax firms. The firm is also the only firm in Uganda rated by the ITR World Tax 2024 as an authority on transfer pricing. Transfer pricing, according to Investopedia.com, is “an accounting and taxation practice that allows for pricing transactions internally within businesses and between subsidiaries that operate under common control or ownership. The transfer pricing practice extends to cross-border…
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On 15th June 2023, the Uganda Revenue Authority (URA) issued a public notice, serving as a reminder to the public “to pay stamp duty on all Agreements or Memorandum of Agreement executed or received in Uganda in relation to the purchase and transfer of property”. In their notice URA stated that “any person who purchases or transfers property should present the Agreement or Memorandum of Agreement together with the Transfer and Consent forms to URA for stamp duty assessment, payment, barcoding, and generation of Stamp Certificate. Stamp duty payable on each Agreement or Memorandum of Agreement is UGX 15,000, while…
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Cephas is a founder and the Managing Partner of Birungyi, Barata & Associates. He is an Advocate of the High Court, a commissioner for Oaths, a Notary Public and a registered Tax Agent with the Uganda Revenue Authority. He is also the head of the Tax Cluster in the Uganda Law Society and a member of the IBA Tax Committee. Founded in 2003, Birungyi, Barata & Associates (BBA) is Uganda’s leading tax law firm. It is recognized both locally and internationally by entities such as Uganda Law Society, East African Law Society, IFLR1000, Chambers & Partners and Global Law Experts…
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The Tax Appeals Tribunal, sitting in Kampala has set aside a UGX4.6 billion import duty assessment against paint makers, Kansai Plascon Uganda. The company dragged the Uganda Revenue Authority (URA) to the Tribunal, challenging an import duty assessment of UGX4,623,958,639 on raw materials imported between 2017 to 2021 from Egypt, namely long oil alkyd resins, polymers and calcium carbonate. Egypt, just like Uganda, is a member of the Common Market for Eastern and Southern Africa (COMESA); therefore, the said goods were supposed to enjoy preferential tax status. In the tax dispute, URA told the court that during this period, Kansai…
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The Income Tax Bill published on 30th March 2023 is spectacular in that it attempts to make dramatic reforms in tax. Apart from doing away with the incentive for investors called initial allowance (50% of the cost base of an eligible property in a radius of 50km outside Kampala and 20% within that radius), it has introduced a wider-ranging tax on digital transactions. Of the proposed reforms, perhaps one that will most likely have wide-ranging effects, if not checked by Parliament, is the redesigning of the policy on the sale of assets which has been upgraded from taxing business assets…
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Tax law firm, Birungyi, Barata & Associates (BBA) has announced that it has elevated four of its Associate Partners, to Partner level. The four are Dorothy Bishagenda, Martin Mbanza Kalemera, Belinda Lutaya Nakiganda and Patrick Kabagambe. In between them, the four new partners possess over 50 years of combined corporate and commercial law knowledge and practice covering key practice areas such as taxation, litigation, dispute resolution, debt collection, conveyancing, intellectual property, insolvency, banking, arbitration, construction, environmental law, as well as oil and gas, among others. “All of our new partners have enhanced the growth and reputation of the firm in…
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Birungyi Cephas Kagyenda of Birungyi, Barata & Associates (BBA) is probably Uganda’s foremost tax professional with rich legal knowledge spanning 36 years in Taxation, Commercial and Corporate Law, Energy and Construction; Dispute Resolution, Insolvency and Employment as well as Advisory and Consultancy. He has worked for the Ministry of Finance from 1984 and later Uganda Revenue Authority where he retired as a Deputy Commissioner in 2004 after cofounding BBA in 2003. He is now the Managing Partner at the firm. BBA itself is one of the leading tax law firms in Uganda that handles up to 35% of all tax…
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The Constitutional Court has restricted the application of Section 15 of the Tax Appeals Tribunal Act, limiting its application to only cases where the tax dispute is about the amount of tax payable. In a majority 3 of 5 ruling, Justices Kenneth Kakuru, Egonda-Ntende and Ezekiel Muhanguzi ruled that, “Section 15 of the Tax Appeals Tribunal Act – in so far as it compels an objector to a tax assessment whose challenge is not with regard to the amount of tax payable, to pay to the tax authority 30% of the tax assessed – is inconsistent with Article 44 of…
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